CAF Goes Back Down Under

Corporacion Andina de Fomento (CAF) has raised AUD225m ($213m) in Australia’s bond market, according to people familiar with the transaction, returning for a longer duration than it got with its first so-called kangaroo bond. The LatAm development bank drew more than AUD225m demand, allowing it to upsize from AUD100m expectations. The AA minus/Aa3/A+ lender priced the 2023 bond at 99.469 with a 6.250% coupon to yield 6.322%, or mid-swaps plus 195bp, in line with 195bp guidance. Australian investors represented 62% of the book, Asian buyers 26% – with Japanese buyers comprising half of Asian accounts – and Europeans 12%. Deutsche Bank and Westpac Institutional Bank managed the deal. Wednesday’s sale follows the August pricing of a AUD275m 4.25% 2016 bond at a 4.47% yield, LatAm’s first ever onshore AUD bond, followed a week later by a AUD75m retap at a 4.45% yield.