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Latin American development bank Corporacion Andina de Fomento (CAF) sold its longest dollar benchmark since 2012 on Tuesday, sneaking in before an FOMC meeting and press conference to raise $1bn of five year bonds.
Aa3/AA-/AA- rated CAF on Monday announced initial price thoughts of 105bp over mid-swaps for a benchmark sized trade due 2021. The bank attracted $1.3bn of orders from more than 80 accounts, allowing it to offer guidance of 100bp area at opening time in London on Tuesday.
Leads Bank of America Merrill Lynch, Barclays, Citi and HSBC then launched a $1bn trade at the tight end of guidance, or a spread of 95bp over mid-swaps.
With Latin America's hefty pipeline of borrowers opting to put issuance plans on hold post-Fed but traditional SSA issuers showing more...