The supranational went out with initial price thoughts in the high 30s of basis points over mid-swaps on Wednesday morning for a new Reg S format benchmark maturing in June 2023.
After receiving indications of interest in excess of €700m, CAF set guidance at 39bp over mid-swaps.
With eurozone debt selling off on worries that the ECB would end the expansion of its bond buying programme, CAF was able to launch a €500m deal at 38bp over mid-swaps on the back of a €750m book.
“On a very volatile day, they did well to get it done,” said one banker close to the deal.
Aa3/AA-/AA- rated CAF sold its new 0.75% notes at 99.917 to yield 0.767%. But the size left some observers underwhelmed.
“I’m a little surprised that they only did €500m given the level of demand,” said one Lat Am DCM banker away from the deal. “Probably they wanted to be tactical with the European investor base given it was a difficult day.”
Barclays, BBVA, Crédit Agricole and JP Morgan were joint lead managers on the deal.
CAF last sold a benchmark in early February, raising €1bn of seven year notes at 40bp over mid-swaps despite US equities suffering their worst day in seven years — triggering a period of hefty volatility from which EM bonds have not fully recovered.
The bank sold its first ever green bond in May, raising Ps150bn ($52.5m) of peso-denominated notes in the Colombian market.