Investor Presentation June 2015

Transcription

1 Investor Presentation Investor Presentation June 2015

2 Table of Contents CAF Overview Financial Highlights Funding Strategy Key Investment Factors 2

3 CAF Overview 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 3

4 CAF Overview From five shareholder countries at inception to its current nineteen Broad Shareholder Base As of March 31, 2015 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%

5 CAF Overview CAF s offices Ciudad de México Panama Quito Bogotá Caracas Madrid Trinidad & Tobago 13 Offices including three Regional Offices. Lima La Paz Brasilia Asuncion Buenos Aires Montevideo Headquarters Regional Offices Country Offices 5

6 CAF Overview Preferred Creditor Status The Constitutive Agreement is an International Treaty that grants several 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 of restrictions, regulations and control and moratorium measures. Art. 52: The Corporation is exempt from all kinds of tax encumbrances 6

7 CAF Overview Proven Preferred Creditor Status Venezuela (1994) Foreign Exchange controls Peru (1980 s) Moratorium on external debt payments Bolivia (1998) HIPC Initiative Argentina ( ) Financial crisis and default on external debt Ecuador (2008) Default on several bonds CAF s Rating Baa3 Baa2 A3 A2 A1 Aa3 Mexico (1994) Tequila Crisis Asia (1997) Financial Crisis Venezuela (2003) Oil Strike USA (2007) Subprime Mortgage Crisis Russia (1998) Default on debt Europe (2009) Sovereign debt crisis None of these events have affected payments to CAF Rating evolution assigned by Moody s 7

8 CAF Overview Strong Fundamentals Agency Rating AA- (Stable) Remarks CAF has been able to operate without difficulty in successive periods of instability in the region due to conservative risk management policies and the member countries' support. Fitch, February, 2015 Aa3 (Stable) AA- (Neg) AA (Stable) CAF s credit strengths include a broad membership base, improved credit quality of members, increased portfolio diversification, robust asset quality, ample market access, and members strong willingness to provide support. - Moody s, September, 2014 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 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,

9 Table of Contents CAF Overview Financial Highlights Funding Strategy Key Investment Factors 9

10 Financial Highlights Balance Sheet (in billions of US$) Assets Liabilities Liquidity $11.4 (35%) $22.4 (69%) Borrowings Loans Other (5%) Total $19.4 (60%) $8.8 (27%) US$ 32.4 US$ 32.4 Other (4%) Stockholders Equity Figures as of March 31,

11 Financial Highlights Liquid Assets (in billions of US$) Liquid Assets / Financial Liabilities 38.1% 41.2% 43.7% 48.5% 50.8% (*) (*) (*) Figures as of March 31,

12 Financial Highlights Improvement of Liquidity Ratios 48.5% 50.8% 43.7% 41.2% 38.1% 35.2% 33.3% 29.2% 30.3% 26.3% (*) CAF s new liquidity policy requires that it maintains sufficient liquid assets to cover at least twelve months of Net Cash Requirements. Liquid Assets/Financial Liabilities Liquid Assets/Total Assets (*) Figures as of March 31,

13 Financial Highlights Liquidity Portfolio Composition US Treasury, Corporate and Financial Bonds 15% CP's 21% *Others 2% Time Deposits 36% 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 CD's 22% Present duration: 0.4 years (*)Others correspond to money market funds, liquidity funds and Supranationals securities Figures as of March 31,

14 Financial Highlights Loan Portfolio (in billions of US$) % 0.05% 0.00% 0.09% 0.09% (*) Loan Portfolio Non-accrual Loans / Loan Portfolio Compound annual growth rate ( ) : 8.5% (*) Figures as of March 31,

15 Financial Highlights Loan Portfolio by Country and Sector Argentina 14.1% Colombia 8.7% Uruguay 2.8% Private Sector 18% Brazil 10.1% Ecuador 14.6% Bolivia 9.9% Paraguay 1.4% Panama 6.5% Public Sector 82% Venezuela 15.3% Peru 12.3% Spain 1.0% Others 3.6% Figures as of March 31,

16 Financial Highlights Country with the highest participation 25.9% 22.3% 22.5% 19.8% 17.6% 17.7% 17.7% 17.2% 16.5% 15.7% Figures as of December of each year 16

17 Financial Highlights Loan Portfolio by Industry Water and Sanitation 6% Energy 28% Transportation 36% Others 8% Financial Intermediaries 11% Social Development 11% 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 Figures as of March 31,

18 Financial Highlights Stockholders Equity (in billions of US$) Retained Earnings and Reserves (US$2.6bn) Paid-in capital (US$6.2 bn) (*) In addition, member countries have subscribed US$1.6 bn in callable capital (*) Figures as of March 31,

19 Financial Highlights Continuous Support in Paid-in Capital Capital Contributions (in millions of US$) Payments US$2.0 bn Capital Increases $606 mn $435 mn $1.6 bn $2.2 bn $2.1 bn 19

20 Financial Highlights Consistent Profitability Profitability ratios and Benchmarks 4% 3% ROE Libor 6M 2% 1.9% 1% 0% % Net Income (in millions of US$) $153 $160 $206 $138 $164 (*) (*) Net income as of March 31, 2015 annualized 20

21 Financial Highlights Multilateral Financial Institution CAF s Ranking Ratings (Standard & Poor s) AA AAA AAA AAA AAA AAA Equity / Assets (%) 2nd Liquidity / Total Assets (%) 3rd Largest Exposure /Total Portfolio (%) 2nd Equity / Impaired Loans 1st N.A Return on Assets (%) 3rd Admin. Expenses / Total Assets (%) 1st Source: Standard & Poor s Supranational Special Edition Figures as of end of year

22 Table of Contents CAF Overview Financial Highlights Funding Strategy Key Investment Factors 22

23 Funding Strategy Diversified and competitive funding Composition of Financial Liabilities Long-term loans 7% Term Deposits 18% Bonds 66% CP's 9% Figures as of March 31,

24 sstand Investor presentation Funding Strategy Capital Market Programs US Shelf EMTN Japan Shelf AMTN Domestic Programs Schedule B Issuer US Dollar Benchmark deals (USD 1-2 Bn) Benchmark deals in different currencies EUR, CHF, GBP, RMB Institutional and Retail - Samurais Recently established Australian Dollar Benchmark deals Aimed to foster development of local financial markets Tenors 3-10 years Included in relevant indexes Listed in LSE exchange Targeted and custom made notes Tenors 2-30 years Listed (when required) Standard documentation Tenors 2-10 years Program size: AUD 2 Bn Targeted towards local and foreign investors Registered programs in Colombia, Peru, Mexico and Venezuela Alone Issues Schuldschein, other 24

25 Funding Strategy Active in Debt Capital Markets Bond Composition by Currency EUR 23% CHF 15% AUD 3% HKD 3% NOK 3% JPY 3% CNY 0,6% COP 1% MXN TRY 1% 0.5% CAF has USD 15.1 billion outstanding bonds composed of 13 different currencies. ZAR 0.1% PEN 0.2% USD 47% Figures as of March 31,

26 Funding Strategy Evolving Investor Base Banks 7% Central Banks / Public Financial Institutions 5% Pension Funds / Insurance Companies 20% Other 16% Fund Managers 52% Central Banks / Public Financial Institutions 38% Others 1% Fund Managers 28% Pension Funds / Insurance Companies 19% Banks 14% Bond issued June 15, 2012 for USD 1 BN compared with bond issued August 8, 2014 for USD1 BN 26

27 Funding Strategy Evolving Geographical Investor Base 2012 United States 59% Latin America 5% United States 33% 2014 Latin America 5% UK 17% Switzerland 13% Other Europe 9% Asia 2% Switzerland 6% UK 19% Nordic 6% Other Europe 8% Middle East 9% Asia 9% Bond issued June 15, 2012 for USD 1 BN compared with bond issued August 8, 2014 for USD1 BN 27

28 Funding Strategy Key Public Market Transactions Market: Swiss Amount: CHF 350 MM Date of issue: February 2015 Maturity: 2026 The largest non-domestic 10 yr trade Market: Australian Amount: AUD 225 MM Date of issue: June 2015 Maturity: 2025 This transaction represents CAF's return to this market since 2013 Market: Yankee Amount: USD 1 BN Date of issue: January 2015 Maturity: 2018 The largest SSA s FRN in the last 12 months Market: Uridashi Amount: TRY 157 MM and 253 ZAR MM Date of issue: December 2014 Maturity: 2018 First Latin American issuer in these currencies 28

29 Funding Strategy Key Private Placements Transactions Amount: USD 50 MM and USD 50 MM Date of issue: March 2015 and June 2015 Maturity: 2019 and 2020 respectively Amount: NOK 1,000 MM Date of issue: May 2015 Maturity: 2025 Amount: JPY 8,900 MM Dates of issue: March 2015 Maturity: 2025 Amount: HKD 1,257 MM Date of issue: February 2014 Maturity:

30 Funding Strategy Short-term Liabilities 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> 30

31 Funding Strategy Long-term Loans Loans from Multilaterals and Export Credit Agencies 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 31

32 Table of Contents CAF Overview Financial Highlights Funding Strategy Key Investment Factors 32

33 Key Investment Factors Key Investment Factors Credit Rating Evolution Aa2/AA Aa3/AA A1/A+ A2/A A3/A Baa1/BBB+ Baa2/BBB Baa3/BBB 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 S&P Moodys JCR Fitch 33

34 Thank you 34

35 Appendix Disclaimer This presentation is for informational purposes only; it does not constitute an offer to sell or solicitation of an offer to buy any of Corporación Andina de Fomento s securities in any jurisdiction to any 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 the information contained in this presentation nor for the implications thereof that could be made. CAF does not guarantee, nor can it be held liable for, the content, or the accuracy, truthfulness or completeness, of the material in this document. Additionally, CAF shall under no circumstances be held liable for losses, damages, liabilities or expenses incurred or assumed as a result of the use of this document. CAF, in its sole discretion, may add, change or update this document and its contents without prior notice. ACCORDINGLY, THE USE OF THIS DOCUMENT AND ITS CONTENTS IS THE EXCLUSIVE RESPONSBILITY OF THE USER, AT ITS OWN RISK. Potential users should conduct their own appropriate investigations and consult their legal, accounting and tax advisors in order to make an independent determination of the accuracy, completeness and veracity of the data contained herein and 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 which CAF has entered or may enter with its shareholder countries, or by the legislation of those states. 35