CAF Raises Tight CHF Funds

Corporacion Andina de Fomento (CAF) has raised CHF250m ($272m) in new 2021 bonds, pricing slightly inside its dollar curve, according to sources following the process. The Venezuela-based development bank priced at 100.094 with a 1.375% coupon to yield 1.363%, or mid-swaps plus 55bp, at the tight end of 57bp-area guidance. Bankers encouraged the multilateral to opt for a longer tenor as it would allow the issuer to gain more access to accounts outside of the private retail investor space. In the end, the 8-year transaction attracted a mix of asset managers and insurance companies with some participation from pension funds. Approximately 80 accounts were heard participating. It was CAF’s eighth CHF deal and its longest maturity and lowest coupon in the currency to date. Credit Suisse managed. Officials at CAF have previously said the bank continues to analyze the USD, EUR, GBP and JPY markets. CAF is rated AA minus/Aa3/A+ with stable outlook.