Latin Finance - November/December 2010 - 66

stuck with the country, maintaining represents an increase of 15% compared financing to keep the export sector alive. to the prior year, and twice the growth “Shareholders have also consistently rate of 7% in 2008. In 2009, earning kept all of their obligations to CAF – assets grew over 15% and total assets they’ve never defaulted, they’ve never reached $15.9 billion, which represents restructured,” says CFO Hugo Sarmiento. an increase of 12%. S&P in June revised its outlook on CAF has focused on infrastructure to the credit’s A+ rating to positive from boost its member countries, becoming stable, reflecting success in expanding a leading lender in 2009. It also the membership base, increasing created a $50 million fund to promote paid-in capital, and reducing country sustainable infrastructure projects concentration in the loan portfolio. and generally seeks to promote social CAF’s biggest risk may lie in its and environmental sustainability in succession plans. CAF’s highly popular LatAm. The multilateral emphasizes president, Enrique García, sees his fourth institutional strengthening in social term expire in 2011 and the institution is sectors, continuing to improve existing mum on who will succeed him. LF programs like integrated water, urban development, education LatinFinance Banks of the Year Leading the way for CAF: García and social The best in 18 countries investment. CAF says it placement in the Japanese market by a Award Winner had no nonLatAm issuer. It is also the first sub-AAA Banco do Brasil Bank of the Year performing rated name to tap that market. Banco do Brasil Best Bank − Brazil loans, and its CAF’s funding is 65% in US dollars, loan loss reserve but there is an increasing percentage BTG Pactual Local Investment Bank − Brazil coverage was done in other currencies, including BBVA Bancomer Best Bank − Mexico of 1.23% of Bolivares, Colombian pesos, euros, sterling, Swiss Francs, Mexican pesos and total loans, at Citi-Banamex Local Investment Bank − Mexico $144 million. Peruvian soles. Banco de Bogotá Best Bank − Colombia “Due to CAF’s Lending is mostly done floating rate Bancolombia Local Investment Bank − Colombia conservative denominated in dollars, so funding is swapped on that basis. CAF has 55% of its internal Banco de Crédito del Peru Best Bank − Peru debt in bonds, 25% in time deposits, 12% policies, year Banco Santander Best Bank − Argentina in commercial paper and short-term loans after year the Banco Santander corporation Best Bank − Chile and 8% in long-term loans. has shown an In 2009, CAF registered record level Celfin Capital Local Investment Bank − Chile exceptional operations of $9.2 billion and granted Banco Pichincha Best Bank − Ecuador level of asset $4.6 billion in loans, mainly aimed at financing medium and long-term projects. quality; Banco Industrial Best Bank − Guatemala exposure and Its membership base continues to Banco de Costa Rica Best Bank – Costa Rica leverage have expand, and the corporation is evolving Republic Bank Limited Best Bank − Trinidad continued at into a regional, versus sub-regional, constant levels,” development lending institution. National Commercial Bank Best Bank − Jamaica says CAF. The broader membership base has Banco Santander Best Bank − Puerto Rico It may be demonstrated its commitment by Banco Mercantil Santa Cruz approving a $4 billion increase in paid-in in a dodgy zip Best Bank − Bolivia code, but CAF capital, to be completed by 2017. Banco de Reservas Best Bank − Dominican Republic Expansion of its LatAm coverage is the points out that Banco Santander Best Bank − Uruguay is has withstood main objective, including incorporating new members. Guatemala and Italy have severe tests. Mercantil Banco Universal Best Bank − Venezuela already signed letters of intent to become For example, Banco Agrícola Best Bank − El Salvador when Ecuador members of CAF, while Argentina and Banco General Best Bank − Panama defaulted, CAF’s Paraguay should become full members exposure was this year. CAF Best Multilateral/Development Bank paid in full. The The loan portfolio reached $11.7 Source: LatinFinance multilateral billion at the end of 2009, which

66 LatinFinance

November/December 2010

Latin Finance - November/December 2010

Table of Contents for the Digital Edition of Latin Finance - November/December 2010