CAF Retaps CHF on Reverse Interest

Corporacion Andina de Fomento (CAF) took advantage of CHF50m ($54m) in reverse inquiry to raise CHF100m through a reopening of its outstanding 2021 Swiss franc-denominated bonds. The Venezuela-based development bank’s reopening represented its first transaction as a pure double-A rated entity and strictly targeted institutional accounts, according to people familiar with the transaction. The bond reopened at 100.360 with a 1.375% coupon to yield 1.326%, or MS+50bp, in line with MS+50bp guidance. The deal priced 5bp tight to the MS+55bp spread seen on the original sale done in January, and came in line with the secondary trading spread of MS+49bp and inside the issuer’s secondary USD levels. Approximately 13 accounts participated. Credit Suisse managed the transaction, rated Aa3/AA minus/AA minus. The sale brings the total outstanding size of the 2021s to CHF350m.