LatinFinance - November/December 2016 - 49

Source: Reuters

ENRIQUE GARCÍA, CAF

GARCÍA: CAF offers an umbrella when it's raining

MULTILATERAL DEVELOPMENT BANK
OF THE YEAR

CAF

The regional lender
leveraged its investment
grade status to raise debt in
multiple currencies, while
increasing its loan portfolio
Multilateral lenders have long served
as Latin America's counter-cyclical
agents, aiding the overall development of
the region. This year's winner, regional
development bank CAF, has maintained
its status as a frequent bond issuer, grown
its loan portfolio and also developed
infrastructure funds.
CAF's president Enrique García says the
bank is the entity that "brings the umbrella
when it's raining", and its relationships
with a number of development banks and
commercial lenders have enabled several
financings to get off the ground.
"It's not just about direct lending. But by
being involved we provide an umbrella so
others can co-finance," he says. "We ensure
we can attract commercial banks and other
financial institutions around the world."
The development bank's loan portfolio
has grown steadily each year since 2011.
Over the 12 months under consideration
for these awards, the loan book rose from

$18.95 billion at the end of June 2015, to
$21.18 billion by end-June 2016. Equity
investments grew to $361.89 million at the
end of June, after recording $319.68 million
at June 2015.
Among its larger deals, CAF in August
signed an $88 million loan with the Bolivian
government. Last November it approved
$260 million in loans for two road projects
in the country.
García says the bank has diversified its
portfolio in the last 12 months and believes
CAF is capable of providing the right
financing to its member countries, whether
that's project finance to both the public and
private sector or short-term trade financing

"CAF'S MAIN
CHALLENGE IS TO
KEEP REINVENTING
ITSELF WHEN THINGS
CHANGE. YOU HAVE TO
ADAPT, MOVE FROM
DIRECT LENDING TO
CO-FINANCING IN MORE
AGGRESSIVE WAYS AS
WELL AS OFFER NEW
INSTRUMENTS LIKE
PARTIAL GUARANTEES
AND EQUITY FUNDS"
requirements.
"We've diversified our portfolio, but
infrastructure has been the main sector,"
he says.
Innovative funding vehicles are a good
part of the reason "we have become
the main multilateral" supporting
infrastructure in the region, says García.
"We are also developing some equity funds
and getting other players like pension
funds to participate."
Take its backing of Colombia's 4G
infrastructure program through a fund it
co-created in December. CAF contributed
$50 million in equity, while hedge fund
Ashmore Group committed $40 million.
The fund has raised $800 million to $1
billion to date, García says.
CAF, along with the World Bank's
International Finance Corporation and
Sumitomo Mitsui Banking Corp, also
invested equity in Colombian development
bank Financiera de Desarollo Nacional
(FDN), another key player in the country's
infrastructure plans.
CAF was scheduled to launch a similar
fund in Uruguay in October, with the
potential to raise $500 million, and García
says plans are in the works for funds in
Argentina, Brazil and Peru.
"CAF's main challenge is to keep
reinventing itself when things change," he
says. "You have to adapt, move from direct
lending to co-financing in more aggressive
ways as well as offer new instruments like
partial guarantees and equity funds." LF

November/December 2016- L ATINFINA NCE.COM 49


http://www.LATINFINANCE.COM

Table of Contents for the Digital Edition of LatinFinance - November/December 2016

Contents
LatinFinance - November/December 2016 - Cover1
LatinFinance - November/December 2016 - Cover2
LatinFinance - November/December 2016 - Contents
LatinFinance - November/December 2016 - 2
LatinFinance - November/December 2016 - 3
LatinFinance - November/December 2016 - 4
LatinFinance - November/December 2016 - 5
LatinFinance - November/December 2016 - 6
LatinFinance - November/December 2016 - 7
LatinFinance - November/December 2016 - 8
LatinFinance - November/December 2016 - 9
LatinFinance - November/December 2016 - 10
LatinFinance - November/December 2016 - 11
LatinFinance - November/December 2016 - 12
LatinFinance - November/December 2016 - 13
LatinFinance - November/December 2016 - 14
LatinFinance - November/December 2016 - 15
LatinFinance - November/December 2016 - 16
LatinFinance - November/December 2016 - 17
LatinFinance - November/December 2016 - 18
LatinFinance - November/December 2016 - 19
LatinFinance - November/December 2016 - 20
LatinFinance - November/December 2016 - 21
LatinFinance - November/December 2016 - 22
LatinFinance - November/December 2016 - 23
LatinFinance - November/December 2016 - 24
LatinFinance - November/December 2016 - 25
LatinFinance - November/December 2016 - 26
LatinFinance - November/December 2016 - 27
LatinFinance - November/December 2016 - 28
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LatinFinance - November/December 2016 - 30
LatinFinance - November/December 2016 - 31
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LatinFinance - November/December 2016 - 33
LatinFinance - November/December 2016 - 34
LatinFinance - November/December 2016 - 35
LatinFinance - November/December 2016 - 36
LatinFinance - November/December 2016 - 37
LatinFinance - November/December 2016 - 38
LatinFinance - November/December 2016 - 39
LatinFinance - November/December 2016 - 40
LatinFinance - November/December 2016 - 41
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LatinFinance - November/December 2016 - 50
LatinFinance - November/December 2016 - 51
LatinFinance - November/December 2016 - 52
LatinFinance - November/December 2016 - Cover3
LatinFinance - November/December 2016 - Cover4
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