Investor Presentation

Investor Presentation

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

CAF Overview The Development Bank of Latin America CAF is a Supranational financial institution owned by Latin American countries 43 years financing sustainable development and regional integration in the region 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

CAF Overview Broad Shareholder Base Full Members From five shareholder countries at inception to its current eighteen Peru 19.3% Venezuela 18.9% Colombia 18.8% Argentina 8.5% Brazil 7.8% Ecuador 5.5% Bolivia 5.4% Uruguay 2.7% Panama 2.3% Paraguay 1.6% Associated Members Spain 4.5% Mexico 1.5% Trin. & Tob. 1.1% Chile 0.7% Dom. Republic 0.8% Costa Rica 0.4% Portugal 0.1% Comm. Banks 0.1% Jamaica 0.02% As of September 30, 2013 4

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 5

CAF Overview Proven Preferred Creditor Status Venezuela (1994) Foreign Exchange controls Peru (1980 s) Moratorium on external debt payments Bolivia (1998) HIPC Initiative Argentina (2001-2002) 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 6

CAF Overview Strong Fundamentals Agency Rating Remarks AA- CAF's "very strong" financial profile reflects its capital adequacy and its funding and liquidity. - Standard & Poor s, October, 2013 Aa3 The ratings also consider the Bank's history of strong support from its primary shareholders, its prudent financial management, and the strong performance of its loan portfolio. - Moody s, September, 2013 AA- Since the1980 s, CAF has been able to operate without difficulty through regional and international crises due to conservative risk management policies and the member countries support. Fitch, March, 2013 AA CAF s asset quality has been maintained at extremely good levels. It has never suffered arrears on payment of interest and principal longer than 180 days from public-sector loans JCR, February, 2013 7

Table of Contents CAF Overview Financial Highlights Funding Strategy Key Investment Factors 8

Financial Highlights Prudent Financial Policies Liquidity > 35% debt service and loan disbursements for the next 12 months, or > 45% of undisbursed commitments Loan Diversification (% of loan portfolio) Single country < 25% Public sector Co. < 1.875% Private sector Co. < 1.05% Capitalization Capitalization Index >30% Gearing < 4x Equity Leverage< 3.5x Equity ALM Minimize liquidity, interest rate and FX risks by matching terms, currencies and rates Interest Rates Loan rates cover all costs and expected profit 9

Financial Highlights Balance Sheet (in billions of US$) Assets Liabilities Liquidity $7.9 (30%) $18.3 (68%) Borrowings Loans and equity Investments $17.6 (65%) Other (3%) Other $1.2 (5%) $7.6 (28%) Stockholders Equity Total US$ 26.8 US$ 26.8 Figures as of September 30, 2013 10

Financial Highlights Liquid Assets (in billions of US$) 3.7 4.1 5.7 7.2 7.9 2009 2010 2011 2012 Sept. 2013 Liquid Assets / Financial Liabilities 35.4% 33.1% 38.1% 41.2% 43.2% 11

Financial Highlights Liquidity Portfolio Composition CP's 29% Time Deposits 27% 96% of liquid assets are rated A- or above with an overall AA average 100% of instruments can be settled by T+3 US Treasury, Corporate and Financial Bonds 22% CD's 15% *Others 7% 44% of liquid assets mature in less than one month Maximum duration: 1.5 years Present duration: 0.57 years *Others correspond to Non- US governmental entities, US public entities and money market funds Figures as of September 30, 2013 12

Financial Highlights Loan Portfolio (in billions of US$) 13.8 15.0 16.4 17.4 11.7 0.00% 0.00% 0.00% 0.05% 0.00% 2009 2010 2011 2012 Sept. 2013 Loan Portfolio Non-accrual Loans / Loan Portfolio Compound annual growth rate (2009-2012) : 11.8% 13

Financial Highlights Loan Portfolio by Country and Sector Argentina 13.5% Colombia 10.8% Uruguay 2.2% Private Sector 18% Brazil 10.3% Ecuador 15.0% Bolivia 9.4% Paraguay 1.0% Panama 4.9% Public Sector 82% Venezuela 16.6% Peru 13.8% Others 2.4% 14

Financial Highlights Loan Portfolio by Industry Water and Sanitation 6% Energy 28% Transportation 35% Others 8% Financial Intermediaries 12% 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 September 30, 2013 15

Financial Highlights Stockholders Equity (in billions of US$) 5.3 5.8 6.4 6.9 7.6 Retained Earnings and Reserves (US$2.5bn) Paid-in capital (US$5.1 bn) 2009 2010 2011 2012 Sept. 2013 Main Capital Ratios Gearing (1) 2.4: 1 Leverage (2) 2.4: 1 (1) Gearing defined as (loan portfolio + equity securities + guarantees) / equity (2) Leverage defined as financial liabilities / equity In addition, countries have subscribed US$1.6 bn in callable capital 16

Financial Highlights Continuous Support in Paid-in Capital Capital Contributions (in millions of US$) 443 405 539 450 729 Capital payments between the years 2013 2017 will total US$3.7 bn 91 137 135 120 209 227 203 206 122 208 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Committed Capital Increases $606 mn $250 mn $1.5 bn $2.5 bn $2.3 bn 17

Financial Highlights Consistent Profitability Profitability ratios and Benchmarks 5% 4% 3% 2% 1% 0% ROE Libor 6M UST 10Y 3.4% 2.20% 0.4% 2009 2010 2011 2012 Sept. 2013 Net Income (in millions of US$) $235 $166 $153 $160 $178(*) Net income is positively correlated with the LIBOR rate (*) Corresponds to the 9 month period ending September 2013. ROE has been annualized. 18

Table of Contents CAF Overview Financial Highlights Funding Strategy Key Investment Factors 19

Funding Strategy Financial Liabilities Composition of Financial Liabilities Long-term loans 8% Term Deposits 18% Diversified and competitive funding Bonds 58% CP's 16% Figures as of September 30, 2013 20

Funding Strategy Funding Strategy Investor diversification Benchmark Issues with increased liquidity Flexibility 21

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 22

Funding Strategy Key Transactions 23

Funding Strategy Active in Debt Capital Markets Bond Composition by Currency CHF 18% HKD 2% PEN 1% MXN 1% COP 2% AUD 3% USD 48% In the last 2 years, CAF has issued 26 successful transactions in 7 different currencies CNY 1% EUR 17% JPY 7% Figures as of September 30, 2013 24

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 USD 2.0 bn each Tenors up to 1 year Dealers: Bank of America Barclays Goldman Sachs Credit Suisse Bloomberg CAF<GO> 25

Funding Strategy Long-term Loans Loans from Multilaterals, EXIMS 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 26

Table of Contents CAF Overview Financial Highlights Funding Strategy Key Investment Factors 27

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- 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 S&P Moodys JCR Fitch Solid Financial Profile Proven preferred creditor status for over 40 years Upgraded thirteen times Currently rated AA-/Aa3 Investment in Latin America with limited risks Offers value compared to its peers 28

Thank you www.caf.com 29

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. 30