Latham & Watkins Advises Latin American Development Bank CAF on its Inaugural SOFR-linked Issuance

Cross-border team of Capital Markets and Latin America-focused lawyers advised on the first SOFR-linked issuance by a Latin American issuer.

June 16, 2021

Latham & Watkins LLP advised Latin American development bank Corporación Andina de Fomento (CAF) on its US$400 million floating rate notes offering, the latest tranche to be sold under CAF’s US$23 billion medium-term note program. The landmark transaction marks the first issuance by a Latin American issuer of notes linked to the Secured Overnight Financing Rate (SOFR), an overnight interest rate administered by the Federal Reserve Bank of New York, which has established itself as an alternative rate to replace US dollar LIBOR. The three-year notes were priced with a coupon of SOFR + 62 basis points and are listed on the London Stock Exchange’s regulated market. J.P. Morgan acted as dealer and calculation agent with respect to the issuance.

CAF is a multilateral financial institution that seeks to foster and promote economic development within Latin America and the Caribbean. Its principal and associated shareholders include the nations of Argentina, Barbados, Bolivia, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, Jamaica, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Trinidad and Tobago, Uruguay, and Venezuela. Over the last 12 months, Latham has counseled CAF in offerings of over US$3.4 billion.

The Latham & Watkins team that advised CAF in the offering was led by Roderick Branch and Basil Al-Jafari, with associate Angel Marcial.

 
 
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