CAF Returns with CHF Bond

Corporacion Andina de Fomento (CAF) has raised CHF250m ($265m) in new 7-year bonds in Switzerland, according to sources following the process. The AA minus/Aa3/A+ Venezuela-based development bank priced the 2020 at 99.621 with a 1.500% coupon to yield 1.557%, or mid-swaps plus 50bp. Proceeds will be used to make an August 13 redemption of CAF’s 5.0% CHF200m 2013 bond, the lender’s first-ever bond in the Swiss Franc market. Credit Suisse managed. CAF has issued CHF600m in the Swiss market this year. It raised CHF250m in new 2021 bonds in January, pricing at 100.094 with a 1.375% coupon to yield 1.363%, or mid-swaps plus 55bp. CAF Officials have previously said the bank continues to analyze the USD, EUR, GBP and JPY markets this year. Tuesday’s deal follows a HKD940m ($121m) private placement in Hong Kong last week.