RISK MITIGATION: What are Updates & Proposals on Risk Mitigation Products?

Product Name Partial Credit Guarantee
Link to Product Website
Provider Name CAF (Corporacion Andina de Fomento)
Product Definition The CAF offers guarantees to companies and financial institutions to back loans granted by other sources to its clients; partial guarantees enhance the credit rating of issues and loans, and the setting up of special purpose trusts.
The Corporation also underwrites fixed-income issues on the region’s capital markets, with the additional purpose of developing these markets.

La garantía parcial de crédito (GPC) es una modalidad de avales y garantías en virtud de la cual la CAF garantiza a un tercero parte del riesgo crediticio de una obligación a cargo de un cliente.

Asimismo, la CAF puede garantizar la suscripción de emisiones de papel de renta fija de entidades emisoras en mercados de capital de la región.

Esta modalidad busca atraer nuevos recursos a la región y estimular a las fuentes de financiamiento privadas a extender los plazos de sus créditos, condiciones que de otra manera no estarían disponibles para los clientes beneficiados por esta modalidad operativa.

Las garantías parciales contribuyen en la mejora de la calificación de emisiones y préstamos, y en la conformación de fideicomisos estructurados, para así apoyar el desarrollo de los mercados de capital de los países accionistas de la Corporación.

Esta modalidad se aplica para garantizar operaciones con riesgo soberano, pudiéndose aplicar de manera selectiva para garantizar operaciones con riesgo no soberano.

Product Type Partial Credit Guarantee
Defined Risks Covered Comprehensive Risk
Eligible Form of Investments Bonds
Bank Loans
Non-Bank Loans
Shareholder Loans
Eligible Currency of Underlying Investment Covered by this Product Both local and foreign currency
Eligible Countries & Regions
Argentina   Bolivia   Brazil  
Chile   Colombia   Costa Rica  
Dominican Republic   Ecuador   Jamaica  
Mexico   Panama   Paraguay  
Peru   Trinidad and Tobago   Uruguay  
Venezuela  
More on Eligible Countries
Eligible Applicants All
Eligible Sector No Specific Sector
Energy: General
Telecom: General
Transport: General
Wireline (Local Networks & Long Distance)
Electricity Generation: Renewable (hydro, wind, biomass, geothermal, solar)
Maximum Tenor 10+ to 15 years
Max. Absolute Amount (USD) 100+ to 250 MM
Max. % of Project Costs Covered 100%
Max. % of Export Content Covered Over 85+%
Fees Market-based
- Subject to transaction type, structure, tenor, and credit profile of beneficiary
- Lower fees for public sector entities


Other Conditions Sovereign Counterguarantee: No
Anti-Corruption and Governance Standards: No
Environmental standards: No
Social standards (incl. Human Rights Standards; Labor Rights Standards): No
Others:
Source(s) n.a.
For more information, contact
Dirección de Asesoramiento Financiero
(Directorate of Financial Advice)
Email: ifombona@caf.com
Attachments Beta Launch Work Plan 070407.doc
SummerResearch.070207.xls
Additional Links n.a.
Deals n.a.

Provider Name CAF (Corporacion Andina de Fomento)
Institution Type PUBLIC: Multilateral Development Bank
Ownership Owned by 17 shareholder countries and 15 private regional banks.
Head Office Ave. Luis Roche, Torre CAF, Altamira, Caracas - Venezuela
Provider Home Country Venezuela
Rating A1/A+/A+
Main Risk Mitigation Products Partial Credit Guarantee (CAF)
Préstamos Modalidad A/B (CAF)
Attachments n.a.
Additional Links www.caf.com
www.caf.com/view/index.asp?ms=11&pageMs=14390
www.caf.com/view/index.asp?ms=11&pageMs=14619
Entered On: 07/04/2007 at 04:54 PM
Updated On: 02/09/2012 at 03:38 PM