Investor PresentationInvestor PresentationJune 2015
Investor presentation
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CAF Overview
Financial Highlights
Funding Strategy
Key Investment Factors
Table of Contents
Investor presentation The Development Bank of Latin America
• CAF is a Supranational financial institution owned by Latin American
countries
• 45 years financing sustainable development and regional integration
• Leading development bank in financing infrastructure and energy
projects in Latin America
• Enjoys Preferred Creditor Status in its shareholder countries
• Rated Aa3/AA-/AA- by Moody’s, S&P and Fitch
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CAF Overview
As of March 31, 2015
Broad Shareholder Base
From five shareholder countries at inception to its current nineteen
Investor presentation
Full Members
Peru 18.6%
Venezuela 18.1%
Colombia 18.0%
Argentina 8.9%
Brazil 7.8%
Ecuador 5.3%
Bolivia 5.2%
Uruguay 2.7%
Panama 2.2%
Paraguay 2.2%
Associated Members (*)
Spain 4.7%
Trinidad & Tobago 2.8%
Mexico 1.4%
Dominican Republic 0.7%
Chile 0.6%
Costa Rica 0.4%
Portugal 0.2%
Barbados 0.2%
Jamaica 0.02%
Commercial Banks 0.05%
CAF Overview
Headquarters
Regional Offices
Country Offices
CAF Overview CAF’s offices
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13 Offices including three Regional Offices.
Caracas
Brasilia
MontevideoBuenos Aires
Asuncion
La Paz
Lima
Quito
Bogotá
Trinidad & TobagoPanama
Ciudad de México
Madrid
Investor presentation
Investor presentationCAF Overview Preferred Creditor Status
The Constitutive Agreement is an International Treaty that grantsseveral privileges and immunities
Art. 47: “…assets of the Corporation, wherever they may be, shall enjoy immunity from expropriations, … or executive measures carried out by any of the Contracting States.”
Art. 48: “The assets of any kind owned by the Corporation may be freely transferred and converted.”
Art. 50: “…assets of the Institution are exempt from all kinds ofrestrictions, regulations and control and moratorium measures.”
Art. 52: “The Corporation is exempt from all kinds of tax encumbrances…”
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Investor presentationCAF Overview Proven Preferred Creditor Status
Venezuela (1994)Foreign Exchange controls
None of these events have affected payments to CAF
Rating evolution assigned by Moody’s
Ecuador (2008)Default on several
bonds
Argentina (2001- 2002)Financial crisis and
default on external debt
Bolivia (1998)HIPC Initiative
Mexico (1994)“Tequila Crisis”
Russia (1998)Default on debt
Asia (1997)Financial Crisis
Peru (1980’s)Moratorium on external
debt payments
USA (2007)Subprime Mortgage
Crisis
Europe (2009)Sovereign debt crisis
CAF’sRating
Baa3 Baa2 A3 A2 A1 Aa3
Venezuela (2003)Oil Strike
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CAF Overview Strong Fundamentals
“Shareholders have reaffirmed CAF's public policy mandate through their several capital increases. The regular injections of new capital have reinforced CAF's ability to lend through the credit cycle and weaker economic conditions” - Standard & Poor’s, October, 2014
AA-(Stable)
Aa3(Stable)
AA-(Neg)
AA(Stable)
“CAF’s credit strengths include a broad membership base,improved credit quality of members, increased portfoliodiversification, robust asset quality, ample market access, andmembers’ strong willingness to provide support.”- Moody’s, September, 2014
“…CAF’s asset quality has been maintained extremely well... There has been no records of principal and interest payment delinquencies for more than 180 days in its public portfolio”– JCR, December, 2014
“CAF has been able to operate without difficulty in successiveperiods of instability in the region due to conservative riskmanagement policies and the member countries' support.”– Fitch, February, 2015
RatingAgency Remarks
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Investor presentation
Investor presentationTable of Contents
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CAF Overview
Financial Highlights
Funding Strategy
Key Investment Factors
US$ 32.4 US$ 32.4
Liquidity
Loans
Other (5%)Total
Borrowings
Other (4%)
$11.4 (35%)
$19.4(60%)
$22.4(69%)
$8.8(27%)
Assets Liabilities
Stockholders’ Equity
Figures as of March 31, 2015
Financial Highlights
Balance Sheet(in billions of US$)
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Investor presentation
38.1% 41.2% 43.7% 48.5% 50.8%(*)
Liquid Assets / Financial Liabilities
Liquid Assets(in billions of US$)
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Financial HighlightsInvestor presentation
5.7
7.28.3
10.211.4
2011 2012 2013 2014 2015
(*) Figures as of March 31, 2015
(*)
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Improvement of Liquidity RatiosFinancial HighlightsInvestor presentation
CAF’s new liquidity policy requires that it maintains sufficient liquid assets to cover at least twelve months of Net Cash Requirements.
38.1%41.2%
43.7%
48.5%50.8%
26.3%
29.2% 30.3%33.3%
35.2%
2011 2012 2013 2014 2015
Liquid Assets/Financial Liabilities Liquid Assets/Total Assets
(*) Figures as of March 31, 2015
(*)
Liquidity Portfolio Composition
13Figures as of March 31, 2015(*)Others correspond to money market funds, liquidity funds and Supranationals securities
Financial Highlights
• 97.1% of liquid assets are rated A- or above
with an overall AA average
• 100% of instruments can be settled by T+3
• Maximum duration: 1.5 years
Present duration: 0.4 years
Investor presentation
Time Deposits
36%
*Others2%
CD's22%
US Treasury, Corporate
and Financial
Bonds15%
CP's21%
Compound annual growth rate (2010-2014) : 8.5%
Loan Portfolio(in billions of US$)
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Financial HighlightsInvestor presentation
15.016.4
18.019.1
19.4
0.05% 0.05% 0.00% 0.09% 0.09%
2011 2012 2013 2014 2015Loan Portfolio Non-accrual Loans / Loan Portfolio
(*) Figures as of March 31, 2015
(*)
Loan Portfolio by Country and Sector
Private Sector18%
Public Sector 82%
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Financial HighlightsInvestor presentation
Figures as of March 31, 2015
Colombia8.7%
Uruguay2.8%
Ecuador14.6%
Paraguay1.4%
Panama6.5%
Others3.6%
Spain1.0%
Peru12.3%
Venezuela15.3%
Bolivia9.9%
Brazil10.1%
Argentina14.1%
25.9%
22.3% 22.5%
19.8%
17.6% 17.7% 17.7%
17.2%16.5%
15.7%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Country with the highest participation
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Financial Highlights
Figures as of December of each year
Investor presentation
Figures as of March 31, 2015
Financial Highlights
Loan Portfolio by Industry
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Investor presentation
“Social Development” includes health, education and other social services“Financial Intermediaries” include commercial and development banks“Others” include mining activities, commerce and tourism among others
Transportation36%
Social Development
11%Financial Intermediaries
11%
Others8%
Energy28%
Water and Sanitation
6%
Retained Earningsand Reserves (US$2.6bn)
Paid-in capital (US$6.2 bn)
In addition, membercountries havesubscribed US$1.6 bnin callable capital
Financial Highlights
Stockholders’ Equity(in billions of US$)
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Investor presentation
6.46.9
7.8
8.8
2011 2012 2013 2014 2015
(*) Figures as of March 31, 2015
(*)
8.8
87 137 114 120 209 227 203 206
122 208
568
405 539
450
865 878
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Continuous Support in Paid-in Capital
Capital Contributions
$435 mnCapital Increases
(in millions of US$)
$2.2 bn$1.6 bn $2.1 bn
Payments 2015 – 2017 US$2.0 bn
$606 mn
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Financial HighlightsInvestor presentation
Consistent Profitability
$153 $160 $206 $138 $164(*)
Net Income (in millions of US$)
Profitability ratios and Benchmarks
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Investor presentationFinancial Highlights
1.9%
0.4%
0%
1%
2%
3%
4%
2011 2012 2013 2014 2015
ROE
Libor 6M
(*) Net income as of March 31 , 2015 annualized
Multilateral Financial Institution
CAF’s Ranking
Ratings (Standard & Poor’s) AA‐ AAA AAA AAA AAA AAA
Equity / Assets (%) 2nd 28.5 24.1 27.8 14.4 30.4 12.2
Liquidity / Total Assets (%) 3rd 30 22 34 19 41 13
Largest Exposure /Total Portfolio (%) 2nd 16 19 20 26 21 10
Equity / Impaired Loans 1st N.A. 75 18 645 23 86
Return on Assets (%) 3rd 0.8 1.4 0.4 0.5 1.8 0.1
Admin. Expenses / Total Assets (%) 1st 0.9 3.7 1.8 2.5 1.5 1.9
Source: Standard & Poor’s “ Supranational Special Edition 2014”. Figures as of end of year 2013
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Financial HighlightsInvestor presentation
Investor presentationTable of Contents
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CAF Overview
Financial Highlights
Funding Strategy
Key Investment Factors
Diversified and competitive fundingFunding Strategy
Composition of Financial Liabilities
Figures as of March 31, 201523
Investor presentation
Term Deposits
18%
CP's9%
Bonds66%
Long-term loans
7%
Capital Market ProgramsInvestor presentation
Funding Strategy
US Shelf
•Schedule B Issuer
•US Dollar Benchmark deals (USD 1-2 Bn)
•Tenors 3-10 years
• Included in relevant indexes
• Listed in LSE exchange
EMTN
•Benchmark deals in different currencies
•EUR, CHF, GBP, RMB
•Targeted and custom made notes
•Tenors 2-30 years
•Listed (when required)
•Standard documentation
Japan Shelf
• Institutional and Retail - Samurais
• Tenors 2-10 years
AMTN
• Recently established
• Australian Dollar Benchmark deals
• Program size: AUD 2 Bn
•Targeted towards local and foreign investors
Domestic Programs• Aimed to foster
development of local financial markets
• Registered programs in Colombia, Peru, Mexico and Venezuela
• sStand Alone Issues
•Schuldschein, other
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Funding Strategy
Bond Composition by Currency
Active in Debt Capital Markets
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Investor presentation
CAF has USD 15.1
billion outstanding
bonds composed of
13 different
currencies.
USD47%
EUR23%
CHF15%
AUD3%
HKD3%
NOK3%
JPY3%
CNY0,6%COP1%
MXN1%TRY
0.5%
PEN0.2%ZAR
0.1%
Figures as of March 31, 2015
2014
Fund Managers
52%
Other16%
Pension Funds / Insurance Companies
20%
Banks7%
Central Banks / Public
Financial Institutions
5%
Fund Managers28%
Pension Funds / Insurance Companies
19%
Banks14%
Others 1%
Central Banks / Public Financial Institutions
38%
Evolving Investor Base
Bond issued June 15, 2012 for USD 1 BN compared with bond issued August 8, 2014 for USD1 BN
2012
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Investor presentationFunding Strategy
2014
United States59%
Latin America
5%
UK19%
Switzerland6%
Asia2%
Other Europe9%
United States33%
Latin America
5%
UK17%
Switzerland13%
Asia9%
Middle East9%
Other Europe8%
Nordic6%
Evolving Geographical Investor Base
2012
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Investor presentation
Bond issued June 15, 2012 for USD 1 BN compared with bond issued August 8, 2014 for USD1 BN
Funding Strategy
Key Public Market Transactions
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Market: Australian
Amount: AUD 225 MM
Date of issue: June 2015
Maturity: 2025
This transaction representsCAF's return to this marketsince 2013
Market: Swiss
Amount: CHF 350 MM
Date of issue: February
2015
Maturity: 2026
The largest non-domestic 10 yrtrade
Market: UridashiAmount: TRY 157 MM and
253 ZAR MM
Date of issue: December 2014
Maturity: 2018
First Latin American issuer in thesecurrencies
Investor presentationFunding Strategy
Market: Yankee
Amount: USD 1 BN
Date of issue: January
2015
Maturity: 2018
The largest SSA’s FRN in the last 12 months
Key Private Placements Transactions
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Amount: USD 50 MM and
USD 50 MM
Date of issue: March 2015
and June 2015
Maturity: 2019 and 2020
respectively
Amount: HKD 1,257 MM
Date of issue: February
2014
Maturity: 2029
Amount: NOK 1,000 MM
Date of issue: May 2015
Maturity: 2025
Amount: JPY 8,900 MM
Dates of issue: March 2015
Maturity: 2025
Investor presentationFunding Strategy
Term Deposits• Clients: Corporate, Financial and Official institutions
• Amounts vary between US$1 – 300 million
USCP and ECP programs
• Ratings A1+/P-1/F1+
• Size: USCP USD 2.0 bn
ECP USD 3.0 bn
•Tenors up to 1 year
• Dealers: Bank of America
Barclays
Goldman Sachs
Credit Suisse
• Bloomberg CAF<GO>
Short-term LiabilitiesInvestor presentation
Funding Strategy
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Funding StrategyInvestor presentation
Loans from Multilaterals and Export Credit Agencies
Long-term Loans
• Agence Française de Développement -AfD
• China Development Bank – CDB
• India Exim Bank
• Instituto de Crédito Oficial de España – ICO
• Japan Bank for International Cooperation – JBIC
• KFW Bankengruppe
• Korea Exim Bank
• Nordic Investment Bank – NIB
• Swedish Export Credit Corporation - SEK
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Investor presentationTable of Contents
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CAF Overview
Financial Highlights
Funding Strategy
Key Investment Factors
1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015
Investor presentationKey Investment Factors
S&P Moodys JCR Fitch
• Solid Financial Profile
• Proven preferred creditor status for 45 years
• Upgraded thirteen times
• Currently rated AA-/Aa3
• Investment in Latin America with limited risks
• Offers value compared to its peers
Key Investment Factors
Credit Rating Evolution
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A2/A
A3/A‐
Baa1/BBB+
Baa2/BBB
Baa3/BBB‐
A1/A+
Aa3/AA‐
Aa2/AA
Investor presentation
Thank you
www.caf.com
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Investor presentationAppendix Disclaimer
This presentation is for informational purposes only; it does not constitute an offer to sell orsolicitation of an offer to buy any of Corporación Andina de Fomento’s securities in any jurisdiction toany person to whom it is unlawful to make such an offer or solicitation.
The information contained in this document is subject to changes, modifications, additions,clarifications and/or substitutions. Corporación Andina de Fomento (“CAF”) is not responsible for theinformation contained in this presentation nor for the implications thereof that could be made. CAFdoes not guarantee, nor can it be held liable for, the content, or the accuracy, truthfulness orcompleteness, of the material in this document. Additionally, CAF shall under no circumstances beheld liable for losses, damages, liabilities or expenses incurred or assumed as a result of the use ofthis document. CAF, in its sole discretion, may add, change or update this document and its contentswithout prior notice.
ACCORDINGLY, THE USE OF THIS DOCUMENT AND ITS CONTENTS IS THE EXCLUSIVERESPONSBILITY OF THE USER, AT ITS OWN RISK. Potential users should conduct their ownappropriate investigations and consult their legal, accounting and tax advisors in order to make anindependent determination of the accuracy, completeness and veracity of the data contained hereinand of the suitability and consequences of any use thereof.
Nothing in this presentation shall constitute nor shall be construed as a waiver of the immunities,privileges and exemptions granted to CAF by its Constitutive Agreement, by the agreements whichCAF has entered or may enter with its shareholder countries, or by the legislation of those states.
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