investor presentation -june 2015 v2 - caf · investor presentation june 2015. investor presentation...

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


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 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 presentationTable of Contents

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CAF Overview


Funding Strategy


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


Balance Sheet(in billions of US$)

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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


(*)

Liquidity Portfolio Composition

13Figures as of March 31, 2015(*)Others correspond to money market funds, liquidity funds and Supranationals securities


• 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


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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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


(*)

Loan Portfolio by Country and Sector

Private Sector18%

Public Sector 82%

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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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Figures as of December of each year




Loan Portfolio by Industry

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“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


Stockholders’ Equity(in billions of US$)

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6.46.9

7.8

8.8

2011 2012 2013 2014 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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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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CAF Overview


Funding Strategy


Diversified and competitive fundingFunding Strategy

Composition of Financial Liabilities



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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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%


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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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


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


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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CAF Overview


Funding Strategy


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


Credit Rating Evolution

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A2/A

A3/A‐

Baa1/BBB+

Baa2/BBB

Baa3/BBB‐

A1/A+

Aa3/AA‐

Aa2/AA


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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investor presentation -june 2015 v2 - caf · investor presentation june 2015. investor presentation...

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