CAF obtains syndicated loan from seven European banks

(Caracas, December 5, 1991).- In an extraordinary event on international markets, CAF obtained a syndicated loan for US$35 million from European banks under the leadership of Deutsche bank in Luxembourg. The other participating financial institutions are: ABN-Amro Bank (Holland), Credit Lyonnais (France), Midland Bank (England), Creditanstalt (Austria), Crediop (Italy), and Banesco Banking Corporation (Spain).

The loan agreement was signed in Luxembourg by representatives of the banks and by CAF President & CEO Galo Montaño and CAF Vice President of Finance Víctor Manuel Hoyos.

The loan has a four-year term with an interest rate of LIBOR plus a 1% annual margin. The operation is a clear demonstration of the interest which Latin America generates on international financial markets not only because of the type of operation, but because of the term and low interest rate.

CAF is the financial organization of the Andean Group formed by Bolivia, Colombia, Ecuador, Peru and Venezuela. The institution now enjoys the confidence of international banks, both development and private, which prefer to operate through CAF because of the seriousness with which it meets its obligations and because its loan recovery is 99%, a rate in unique Latin America.