New bond issue in Colombia

(Bogotá, April 1, 2009).- The Andean Development Corporation (CAF) announced a successful bond issue in Colombia for a total of 240 billion pesos (equivalent to US$95 million) following demand which greatly exceeded the amount on offer. The issue was divided into two tranches with 5 and 10 year terms. This is the second allocation under an Issue and Placement Program begun in 2008 for a total amount of one trillion Colombian pesos. “This second issue, which confirms the Corporation's commitment to the Colombian market, is part of our strategies to obtain funds in order to continue supporting the economic and social development of our shareholder countries,” said CAF President & CEO Enrique García. In December 2008, CAF issued the first part of this program for 245 billion pesos.

The brokerage firm, BBVA Valores Colombia S.A, was placement agent for the issue, which was distributed among a large number of institutional investors in the country, including pension funds, trust funds and commercial banks.

This is the third bond issue by the multilateral organization in Colombia. The first was in June 2004 for 272 billion pesos, due in 2010 which was also the Corporation's first in the local currency of a member country. The second issue in Colombia was in December last year.

CAF has also made several placements on Venezuelan, Peruvian and Mexican markets as part of its support strategy for developing local capital markets.