svb
As filed
with the Securities and Exchange Commission on May 20,
2011
Registration
No. 333-
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C.
20549
REGISTRATION
STATEMENT
UNDER SCHEDULE B
OF
THE SECURITIES ACT OF 1933
Corporación Andina de
Fomento
(Name of Registrant)
Name and Address of Authorized Agent in the United
States:
Puglisi & Associates
850 Library Avenue, Suite 204
Newark, Delaware 19711
Copies to:
|
|
|
|
|
Robert S. Risoleo, Esq.
Paul J. McElroy, Esq.
Sullivan & Cromwell LLP
1701 Pennsylvania Avenue, N.W.
Washington, D.C. 20006
United States of America
|
|
Hugo Sarmiento Kohlenberger
Chief Financial Officer
Corporación Andina de Fomento
Torre CAF
Avenida Luis Roche, Altamira
Caracas, Venezuela
|
|
Erika L. Robinson, Esq.
Wilmer Cutler Pickering Hale
and Dorr LLP
1875 Pennsylvania Avenue, N.W.
Washington, D.C. 20006
United States of America
|
Approximate date of commencement of proposed sale to the
public: From time to time after this Registration
Statement becomes effective.
The securities being registered pursuant to this Registration
Statement are to be offered on a delayed or continuous basis
pursuant to Release Nos.
33-6240 and
33-6424
under the Securities Act of 1933.
CALCULATION
OF REGISTRATION FEE
|
|
|
|
|
|
|
|
|
|
Proposed Maximum
|
|
|
Amount of
|
Title of Each Class of
|
|
|
Aggregate
|
|
|
Registration
|
Securities to be Registered
|
|
|
Offering Price(1)
|
|
|
Fee(2)
|
Debt Securities
|
|
|
(1)
|
|
|
|
Guarantees
|
|
|
(1)
|
|
|
|
Total
|
|
|
$600,000,000(3)
|
|
|
$69,660
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
The securities registered hereunder and under the additional
registration statement noted in note (2) below shall not
have an aggregate offering price which exceeds $1,500,000,000 in
United States dollars or the equivalent in any other currency. |
|
(2) |
|
Pursuant to Rule 429(b), the prospectus filed as part of
this Registration Statement also relates to the remaining unsold
$900,000,000 principal amount of securities registered on the
Registrants previously filed Registration Statement under
Schedule B (File
No. 333-167348),
originally filed on June 4, 2010. The Registrant paid
filing fees of $64,170 with respect to those previously
registered securities. |
|
(3) |
|
Estimated solely for the purpose of calculating the registration
fee pursuant to Rule 457(o). |
The Registrant hereby amends this Registration Statement on
such date or dates as may be necessary to delay its effective
date until the Registrant shall file a further amendment which
specifically states that this Registration Statement shall
thereafter become effective in accordance with Section 8(a)
of the Securities Act of 1933 or until the Registration
Statement shall become effective on such date as the Commission,
acting pursuant to said Section 8(a), may determine.
The
Information in this preliminary prospectus is not complete and
may be changed. We may not sell these securities until the
registration statement filed with the Securities and Exchange
Commission becomes effective. This preliminary prospectus is not
an offer to sell and does not seek to buy these securities in
any jurisdiction where the offer or sale is not permitted.
|
SUBJECT TO COMPLETION.
PRELIMINARY PROSPECTUS DATED
MAY 20, 2011.
$1,500,000,000
Corporación
Andina de Fomento
Debt Securities
Guarantees
We may from time to time offer up to $1,500,000,000 (or its
equivalent in other currencies) aggregate principal amount of
the securities described in this prospectus. The securities may
be debentures, notes, guarantees or other unsecured evidences of
indebtedness. In the case of debt securities sold at an original
issue discount, we may issue a higher principal amount up to an
initial public offering price of $1,500,000,000 (or its
equivalent).
We may offer the securities from time to time as separate
issues. In connection with any offering, we will provide a
prospectus supplement describing the amounts, prices,
maturities, rates and other terms of the securities we are
offering in each issue.
We may sell the securities directly to or through underwriters,
and may also sell securities directly to other purchasers or
through agents.
Neither the Securities and Exchange Commission nor any other
regulatory body has approved or disapproved of these securities
or passed upon the adequacy or accuracy of this prospectus. Any
representation to the contrary is a criminal offense.
Prospectus
dated ,
2011
TABLE OF
CONTENTS
|
|
|
|
|
|
|
Page
|
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
3
|
|
|
|
|
3
|
|
|
|
|
4
|
|
|
|
|
5
|
|
|
|
|
5
|
|
|
|
|
12
|
|
|
|
|
13
|
|
|
|
|
19
|
|
|
|
|
29
|
|
|
|
|
30
|
|
|
|
|
31
|
|
|
|
|
31
|
|
|
|
|
35
|
|
|
|
|
38
|
|
|
|
|
42
|
|
|
|
|
42
|
|
|
|
|
47
|
|
|
|
|
47
|
|
|
|
|
47
|
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
48
|
|
|
|
|
F-1
|
|
|
|
|
S-1
|
|
ABOUT
THIS PROSPECTUS
This prospectus is part of a registration statement that we
filed with the Securities and Exchange Commission under the
Securities Act of 1933, as amended, which we refer to as the
Securities Act, using a shelf registration process.
Under the shelf process, we may from time to time sell any
combination of the securities described in this prospectus in
one or more offerings up to a total dollar amount of
$1,500,000,000 or the equivalent of this amount in foreign
currencies or foreign currency units.
This prospectus provides you with a general description of our
business and of the securities we may offer. Each time we sell
securities, we will provide a prospectus supplement that will
contain specific information about the terms of the securities
in that offering. The prospectus supplement may also add, update
or change information contained in this prospectus. You should
read both this prospectus and any prospectus supplement before
purchasing our securities. If the information in any prospectus
supplement differs from the information in this prospectus or in
the registration statement, you should rely on the information
in the prospectus supplement.
The registration statement, any post-effective amendment to the
registration statement and their various exhibits contain
additional information about Corporación Andina de Fomento
(CAF), the securities we may issue and other
matters. All of these documents may be inspected at the offices
of the Securities and Exchange Commission.
1
You should rely only on the information in this prospectus or
in other documents to which we have referred you in making your
investment decision. We have not authorized anyone to provide
you with information that is different. This prospectus may only
be used where it is legal to sell these securities. The
information in this prospectus may only be accurate on the date
specified on the cover of this document.
Except as otherwise specified, all amounts in this prospectus
are expressed in United States dollars (dollars,
$, U.S.$ or
U.S. dollars).
Certain amounts that appear in this prospectus may not sum
because of rounding adjustments.
FORWARD-LOOKING
INFORMATION
This prospectus may contain forward-looking statements.
Statements that are not historical facts are statements about
our beliefs and expectations and may include forward-looking
statements. These statements are identified by words such as
believe, expect, anticipate,
should and words of similar meaning. Forward-looking
statements are inherently subject to risks and uncertainties,
many of which cannot be predicted with accuracy and some of
which might not even be anticipated. Future events and actual
financial and other results may differ materially from the
results discussed in the forward-looking statements. Therefore,
you should not place undue reliance on them. Factors that might
cause such a difference include, but are not limited to, those
discussed in this prospectus, such as the effects of economic or
political turmoil in one or more of our shareholder countries.
2
CORPORACIÓN
ANDINA DE FOMENTO
CAF was established in 1968 pursuant to the Agreement
establishing the Corporación Andina de Fomento (the
Constitutive Agreement), an international treaty,
and seeks to foster and promote economic development within
Latin America and the Caribbean. CAF is a multilateral financial
institution, the principal shareholders of which are the current
contracting parties to the Constitutive Agreement
the Plurinational State of Bolivia, the Republics of Argentina,
Colombia, Ecuador, Panama and Peru, the Federative Republic of
Brazil, the Oriental Republic of Uruguay and the Bolivarian
Republic of Venezuela, each of which we refer to in this
prospectus as a full member shareholder country and which we
refer to collectively in this prospectus as the full member
shareholder countries. We refer to our full member shareholder
countries and our associated shareholder countries collectively
as our shareholder countries. At December 31, 2010, the
full member shareholder countries of CAF collectively accounted
for 85%1
of the nominal value of our paid-in capital. The other
shareholder countries of CAF are Chile, Costa Rica, Dominican
Republic, Jamaica, Mexico, Paraguay, Portugal, Spain and
Trinidad and Tobago, each of which we refer to in this
prospectus as an associated shareholder country and which we
refer to collectively in this prospectus as the associated
shareholder countries. At December 31, 2010, our associated
shareholder countries collectively accounted for
14.9%2 of
the nominal value of our paid-in capital. Our shares are also
held by 14 financial institutions based in the full member
shareholder countries, which collectively accounted for 0.1% of
the nominal value of the paid-in capital at December 31,
2010. CAF commenced operations in 1970. Our headquarters are in
Caracas, Venezuela, and we have regional offices in Bogota,
Brasilia, Buenos Aires, La Paz, Lima, Panama City,
Montevideo, Madrid and Quito.
We offer financial and related services to the governments of,
and public and private institutions, corporations and joint
ventures in, our shareholder countries. Primarily, we provide
short, medium and long-term loans and guarantees; to a lesser
extent, we also participate as a limited equity investor in
corporations and investment funds, and provide technical and
financial assistance, as well as administrative services for
certain regional funds.
The Constitutive Agreement generally delegates to our Board of
Directors the power to establish and direct our financial,
credit and economic policies. Our Board of Directors has adopted
a formal statement of our financial and operational policies,
the (Políticas de Gestión). These operational
policies provide our management with guidance as to significant
financial and operational issues, and they may not be amended by
the Board of Directors in any manner inconsistent with the
Constitutive Agreement. In 1996, the Constitutive Agreement was
amended to include and further increase certain lending and
borrowing limitations previously set forth in these operational
policies. See Operations of CAF Credit
Policies.
We raise funds for operations both within and outside our
shareholder countries. Our strategy with respect to funding, to
the extent possible under prevailing market conditions, is to
match the maturities of our liabilities to the maturities of our
loan portfolio.
Our objective is to support sustainable development and economic
integration within Latin America and the Caribbean by helping
our shareholder countries make their economies diversified,
competitive and more responsive to social needs.
LEGAL
STATUS OF CAF
As an international treaty organization, we are a legal entity
under public international law. We have our own legal
personality, which permits us to enter into contracts, acquire
and dispose of property and take legal
1 Brazil,
Panama and Uruguay became full member shareholder countries
during the calendar year 2010. Argentina became a full member
shareholder country after December 31, 2010; on
December 31, 2010, only Bolivia, Brazil, Colombia, Ecuador,
Panama, Peru, Uruguay and Venezuela were full member shareholder
countries.
2 On
December 31, 2010, Argentina was an associated shareholder
country along with Chile, Costa Rica, Dominican Republic,
Jamaica, Mexico, Paraguay, Spain and Trinidad and Tobago.
Portugal became an associated shareholder country in 2011.
3
action. The Constitutive Agreement has been ratified by the
legislature in each of the full member shareholder countries. We
have been granted the following immunities and privileges in
each full member shareholder country:
|
|
|
|
(1)
|
immunity from expropriation, search, requisition, confiscation,
seizure, sequestration, attachment, retention or any other form
of forceful seizure by reason of executive or administrative
action by any of the full member shareholder countries and
immunity from enforcement of judicial proceedings by any party
prior to final judgment;
|
|
|
(2)
|
free convertibility and transferability of our assets;
|
|
|
(3)
|
exemption from all taxes and tariffs on income, properties or
assets, and from any liability involving payment, withholding or
collection of any taxes; and
|
|
|
(4)
|
exemption from any restrictions, regulations, controls or
moratoria with respect to our property or assets.
|
In addition, we have entered into agreements with each of our
associated shareholder countries, except Chile (ratification by
Chile is pending as of the date hereof). Pursuant to these
agreements, each country has agreed to extend to us, with
respect to our activities in and concerning that country,
immunities and privileges similar to those we have been granted
in the full member shareholder countries.
The governments of some of CAFs shareholder countries have
historically taken actions, such as nationalizations and
exchange controls, that would be expected to adversely affect
ordinary commercial lenders. In light of the immunities and
privileges discussed above, we have not been adversely affected
by these actions.
USE OF
PROCEEDS
Unless otherwise specified in the accompanying prospectus
supplement, we will use the net proceeds of the sale of the
securities to fund our lending operations.
4
CAPITALIZATION
AND INDEBTEDNESS
The following table sets forth our capitalization and
indebtedness at March 31, 2011 and does not give effect to
any transaction since that date.
|
|
|
|
|
|
|
At March 31,
|
|
|
|
2011
|
|
|
|
(in U.S.$ millions)
|
|
|
Short-term debt(1)
|
|
$
|
7,002.9
|
|
|
|
|
|
|
Long-term debt (maturities over one year)
|
|
$
|
7,241.2
|
|
Stockholders Equity
|
|
|
|
|
Capital
|
|
|
|
|
Subscribed capital, paid-in and un-paid (authorized capital
$10.0 billion)(2)
|
|
|
3,764.1
|
|
Less: Un-paid capital
|
|
|
(684.2
|
)
|
|
|
|
|
|
Paid-in capital
|
|
|
3,079.9
|
|
Additional paid-in capital
|
|
|
479.4
|
|
|
|
|
|
|
Total Capital
|
|
|
3,559.3
|
|
Reserves
|
|
|
|
|
Mandatory reserve
|
|
|
398.8
|
|
General reserve
|
|
|
1,830.7
|
|
|
|
|
|
|
Total reserves
|
|
|
2,229.6
|
|
Retained earnings
|
|
|
27.6
|
|
|
|
|
|
|
Total shareholders equity
|
|
|
5,816.4
|
|
|
|
|
|
|
Total long-term debt and stockholders equity
|
|
$
|
13,057.6
|
|
|
|
|
|
|
|
|
|
(1) |
|
Includes deposits, commercial paper, short-term borrowings, the
current portion of bonds, borrowings and other obligations,
accrued interest payable, commissions payable and the current
portion of derivative instrument liabilities. |
|
(2) |
|
In addition to subscribed capital shown in the table, CAFs
subscribed capital included callable capital of
$1.5 billion at March 31, 2011. |
CAPITAL
STRUCTURE
General
As of March 31, 2011:
CAFs authorized capital is $10.0 billion, of which
$6.5 billion will be paid-in capital and $3.5 billion
will be callable capital.
Our shares are divided into Series A shares, Series
B shares and Series C shares.
Series A shares may be owned only by the full member
shareholder countries. Each full member shareholder country owns
one Series A share, which is held by the government,
either directly or through a government-designated social or
public purpose institution. Each of the full member shareholder
countries owning a Series A share is entitled to
elect one Director and one Alternate Director to our Board of
Directors.
Series B shares are currently owned by Argentina,
Bolivia, Brazil, Colombia, Ecuador, Panama, Peru, Uruguay and
Venezuela, and are held by the governments either directly or
through designated governmental entities, except for certain
Series B shares currently constituting 0.1% of our
outstanding shares, which are owned by 14 private sector
financial institutions in the full member shareholder countries.
We offered and sold
5
Series B shares to private sector financial
institutions in 1989 in order to obtain the benefit of their
views in the deliberations of our Board of Directors. Currently,
Argentina, Bolivia, Brazil Colombia, Ecuador, Panama, Peru,
Uruguay and Venezuela, as owners of Series B shares,
collectively are entitled to elect five additional Directors and
five Alternate Directors through cumulative voting, and the 14
private sector owners of Series B shares
collectively are entitled to elect one Director and one
Alternate Director.
Series C shares are currently owned by nine
associated shareholder countries: Chile, Costa Rica, Dominican
Republic, Jamaica, Mexico, Paraguay, Portugal, Spain and
Trinidad and Tobago. We make available Series C
shares for subscription by countries which are not full member
shareholder countries in order to strengthen links between these
countries and the full member shareholder countries. Ownership
of our Series C shares by these countries makes
entities in these countries that deal with entities in full
member shareholder countries eligible to receive loans from us
with respect to these dealings. Holders of Series C
shares collectively are entitled to elect two Directors and two
Alternate Directors.
Under the Constitutive Agreement, Series A shares
may be held by or transferred only to governments or
government-designated social or public purpose institutions.
Series B shares also may be held by or transferred
to such entities and, in addition, may be held by or transferred
to private corporations or individuals, except that no more than
49% of the Series B shares within any country may be
held by private shareholders. Series C shares may be
held by or transferred to public or private entities outside the
full member shareholder countries. Unless a shareholder country
withdraws, Series A and Series B shares
may only be transferred within such country.
An amendment to the Constitutive Agreement became effective on
July 9, 2008, which (i) allows, under certain
circumstances, Latin American and Caribbean countries, including
those that are currently associated shareholder countries, to
own Series A shares and become full member
shareholder countries, and (ii) expands CAFs formal
purpose to include supporting sustainable development and
economic integration within all of Latin America and the
Caribbean, as opposed to within only the Andean region.
Consequently, on March 17, 2009, CAFs Extraordinary
Shareholders Meeting approved the terms and conditions
precedent by which Argentina, Brazil, Panama, Paraguay and
Uruguay may become contracting parties to the Constitutive
Agreement, may become full member shareholder countries and may
own Series A shares. As of the date of this
prospectus, Argentina, Brazil, Panama and Uruguay have ceased to
be Series C shareholder countries, have adhered to
the Constitutive Agreement and now possess Series A
shares.
Note:
All figures at December 31, 2010 which reference full
member shareholder countries only include the Plurinational
State of Bolivia, the Republics of Colombia, Ecuador, Panama and
Peru, the Federative Republic of Brazil, the Oriental Republic
of Uruguay and the Bolivarian Republic of Venezuela. All figures
at December 31, 2010 which reference associated
shareholder countries encompass all other shareholder
countries, which include associated shareholder countries that
became full member shareholder countries after such date.
Similarly, use of the term full member shareholder
countries without any date referenced thereto includes all
countries which currently enjoy said status (the Plurinational
State of Bolivia, the Federative Republic of Brazil, the
Republics of Argentina, Colombia, Ecuador, Panama and Peru, the
Oriental Republic of Uruguay, and the Bolivarian Republic of
Venezuela). Use of the term associated shareholder
countries without any referenced date includes all other
shareholder countries that are not currently full member
shareholder countries.
Paid-in
Capital and Un-paid Capital
At December 31, 2010, CAFs subscribed paid-in and
un-paid capital was $3.5 billion, of which
$2.8 billion was paid-in capital and $706.2 million
was un-paid capital, which is receivable in installments
according to the agreements subscribed with the shareholder
countries. Over the years, we have had several increases of
subscribed capital.
6
Since 1990, capital contributions to CAF have included a premium
(valor patrimonial) paid on each share purchased. This premium
is in addition to the nominal $5,000 per share value established
by CAFs by-laws. The premium is determined at the
beginning of each subscription and applies to all payments under
that subscription.
A list of selected capital contributions follows:
Argentina
In 2001, Argentina subscribed to paid-in capital of
$25.0 million, which was paid in full in 2005. Also, in
2005, Argentina subscribed to an additional paid-in capital
increase of $75.0 million, which was paid in full in 2008.
In 2007, Argentina entered into an agreement to subscribe to an
additional $543.0 million in Series C shares,
of which it paid $315.0 million in 2009 and the remaining
balance of $228 million in 2010.
In 2009, Argentina subscribed to an additional
$190.0 million in Series C shares, to be paid
in seven installments beginning in 2011.
In 2010, Argentina subscribed to $126.0 million in callable
capital.
In February 2011, upon completion of all requirements to become
a full member shareholder country, Argentina acquired a
$1.2 million Series A share and exchanged all
of its Series C ordinary and callable capital shares
for Series B shares equivalents.
Bolivia
In 2002, the Plurinational State of Bolivia subscribed to a
paid-in capital increase of $19.7 million, which was paid
in six installments ending in 2008.
In 2009, Bolivia subscribed to an additional $105.0 million
in Series B shares, to be paid in eight
installments. As of the date of this prospectus, Bolivia had
paid $6.9 million, representing its full 2010 and partial
2011 payment obligations.
Brazil
In 2003, the Federative Republic of Brazil subscribed to an
additional capital contribution of $50.0 million, which was
paid in full in 2005.
In 2007, Brazil entered into an agreement to subscribe to an
additional $467.0 million in Series C shares,
of which it paid $234.4 million in 2009 and
$83.2 million in 2010.
In 2009, Brazil subscribed to an additional $190.0 million
in Series C shares to be paid in seven installments.
The first installment is due September 2011.
In 2009, Brazil subscribed to $126.0 million in callable
capital.
In 2010, upon completion of all requirements to become a full
member shareholder country, Brazil acquired a $1.2 million
Series A share and exchanged all of its Series
C ordinary and callable capital shares for Series
B shares equivalents.
Chile
In 2007, the Republic of Chile subscribed to an additional
$50.0 million in Series C shares, which was
paid in full in the same year.
Colombia
In 2002, the Republic of Colombia subscribed to a paid-in
capital increase of $95.2 million, which was paid in full
in 2007.
In 2009, Colombia subscribed to an additional $20.0 million
in Series B shares, which was paid in full in 2010.
7
In 2010, Colombia subscribed to an additional $150 million
in Series B shares.
Costa
Rica
In 2006, Costa Rica paid in full its subscribed capital of
$20.0 million.
Dominican
Republic
In 2004, the Dominican Republic entered into an agreement to
subscribe to Series C shares for a total capital
contribution of $50.0 million, which was paid in full in
2009.
In 2009, the Dominican Republic subscribed to an additional
$17.0 million in Series C shares to be paid in
eight installments.
Ecuador
In 2002, the Republic of Ecuador subscribed to a paid-in capital
increase of $19.7 million, which was paid in full in 2006.
In 2009, Ecuador subscribed to an additional $105.0 million
in Series B shares to be paid in eight installments.
As of the date of this prospectus, Ecuador had paid
$5.0 million, representing its full 2010 payment
obligations.
Panama
In 2005, the Republic of Panama subscribed to an additional
capital contribution of $10.0 million, which was paid in
full in 2009.
In 2008, Panama entered into an agreement to subscribe to an
additional $170.0 million in Series C shares.
As of the date of this prospectus, Panama had paid
$85.0 million, with the balance to be paid in three annual
installments ending in 2013.
In 2009, Panama subscribed to an additional $55.0 million
in Series C shares to be paid in seven installments.
In 2010, Panama subscribed to $36.0 million in callable
capital.
In 2010, upon completion of all requirements to become a full
member shareholder country, Panama acquired a $1.2 million
Series A share and exchanged all of its Series
C ordinary and callable capital shares for Series
B shares equivalents.
Paraguay
In 2008, the Republic of Paraguay entered into an agreement to
subscribe to an additional $189.0 million in Series
C shares. As of the date of this prospectus,
Paraguay had paid $35.0 million, with the balance to be
paid in four annual installments.
In 2009, Paraguay subscribed to an additional $81.0 million
in Series C shares to be paid in seven installments.
Peru
In 2002, the Republic of Peru subscribed to a paid-in capital
increase of $70.2 million, which was paid in full in 2006.
In 2009, Peru subscribed to an additional $380.0 million in
Series B shares to be paid in eight installments. As
of the date of this prospectus, Peru had paid
$20.0 million, representing its full 2010 payment
obligations.
8
Portugal
In 2009, the Republic of Portugal subscribed to
EUR 15.0 million in Series C shares to be
paid in four installments and EUR 60.0 million in
callable capital. As of March 2011, Portugal had paid
EUR 3.6 million related to its first capital
installment.
Spain
In 2002, Spain subscribed to paid-in capital of
$100.0 million, which was paid in full in 2004. In 2002,
Spain also subscribed to callable capital of $200.0 million.
In 2010, Spain subscribed to an additional $327.0 million
of paid-in capital and paid its first installment of
$65.4 million that same year, with the balance to be paid
in four annual and equal installments ending in 2014.
Trinidad
and Tobago
In 2009, Trinidad and Tobago entered into an agreement to
subscribe to Series C shares for a total capital
contribution of $6.0 million, of which it paid
$2.0 million in 2009 and $2.0 million in 2010, with
the balance to be paid in two annual installments ending in 2013.
Uruguay
In 2001, Uruguay subscribed to paid-in capital of
$5.0 million, which was paid in full in 2004.
In 2002, Uruguay subscribed to an additional $15.0 million
of paid-in capital, which was paid in full in 2006.
In 2004, Uruguay subscribed to an additional capital
contribution of $20.0 million, which was paid in full in
2008.
In 2007, Uruguay entered into an agreement to subscribe to an
additional $137.0 million in Series C shares,
of which it paid $81.0 million in 2009 and
$27.0 million in 2010, with the remaining balance to be
paid in 2012.
In 2009, Uruguay subscribed to an additional $55.0 million
in Series C shares to be paid in seven installments.
In 2009, Uruguay subscribed to $36.0 million in callable
capital.
In 2010, upon completion of all requirements to become a full
member shareholder country, Uruguay acquired a $1.2 million
Series A share and exchanged all of its Series
C ordinary and callable capital shares for Series
B shares equivalents.
Venezuela
In 2002, the Bolivarian Republic of Venezuela subscribed to a
paid-in capital increase of $70.2 million, which was paid
in full in 2006.
In 2009, Venezuela subscribed to an additional
$380.0 million in Series B shares to be paid in
eight installments. As of the date of this prospectus, Venezuela
had paid $20.0 million, representing its full 2010 payment
obligations.
As of the date of this prospectus, all shareholder countries
were current in their capital payments, with the exception of
Brazil. Pursuant to the Subscription Agreement entered in 2007,
Brazil had scheduled capital payments for $467.0 million
for the period between 2009 and 2011, including a final
$200.0 million capital payment for 2011. Since 2009, CAF
has received capital payments from Brazil in the amount of
$317.7 million, of which $50.7 million has been
applied to the amount due in January 2011. CAF has been informed
by Brazil that operational factors have delayed payment of the
remaining $149.3 million balance due of the 2011 capital
payment, and that such payment will be forthcoming in the near
future.
9
The following table sets out the nominal value of our subscribed
paid-in capital and un-paid capital as of December 31, 2010:
|
|
|
|
|
|
|
|
|
Shareholders
|
|
Paid-in Capital
|
|
|
Un-paid Capital
|
|
|
|
(in U.S.$ thousands)
|
|
|
Series A Shares:
|
|
|
|
|
|
|
|
|
Bolivia
|
|
$
|
1,200
|
|
|
$
|
|
|
Brazil
|
|
|
1,200
|
|
|
|
|
|
Colombia
|
|
|
1,200
|
|
|
|
|
|
Ecuador
|
|
|
1,200
|
|
|
|
|
|
Panama
|
|
|
1,200
|
|
|
|
|
|
Peru
|
|
|
1,200
|
|
|
|
|
|
Uruguay
|
|
|
1,200
|
|
|
|
|
|
Venezuela
|
|
|
1,200
|
|
|
|
|
|
Series B Shares:
|
|
|
|
|
|
|
|
|
Bolivia
|
|
|
164,460
|
|
|
|
35,210
|
|
Brazil
|
|
|
200,640
|
|
|
|
56,570
|
|
Colombia
|
|
|
581,815
|
|
|
|
52,105
|
|
Ecuador
|
|
|
165,770
|
|
|
|
35,210
|
|
Panama
|
|
|
45,760
|
|
|
|
49,400
|
|
Peru
|
|
|
583,035
|
|
|
|
126,760
|
|
Uruguay
|
|
|
67,360
|
|
|
|
30,350
|
|
Venezuela
|
|
|
583,025
|
|
|
|
126,760
|
|
Private sector financial institutions
|
|
|
1,645
|
|
|
|
20
|
|
Series C Shares:
|
|
|
|
|
|
|
|
|
Argentina
|
|
|
222,710
|
|
|
|
46,590
|
|
Chile
|
|
|
23,895
|
|
|
|
|
|
Costa Rica
|
|
|
14,190
|
|
|
|
|
|
Dominican Republic
|
|
|
25,170
|
|
|
|
|
|
Jamaica
|
|
|
785
|
|
|
|
|
|
Mexico
|
|
|
20,335
|
|
|
|
|
|
Paraguay
|
|
|
20,620
|
|
|
|
54,415
|
|
Spain
|
|
|
90,380
|
|
|
|
92,110
|
|
Trinidad and Tobago
|
|
|
2,345
|
|
|
|
710
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
2,813,940
|
|
|
$
|
706,210
|
|
|
|
|
|
|
|
|
|
|
Reserves
Article 42 of the Constitutive Agreement requires that at
least 10% of our net income in each year be allocated to a
mandatory reserve until that reserve amounts to 50% of
subscribed capital. The mandatory reserve can be used only to
offset losses. We also maintain a general reserve to cover
contingent events and as a source of funding of last resort in
the event of temporary illiquidity or when funding in the
international markets is not available or is impractical. The
general reserve is invested in short-term securities and
certificates of deposit that are easily convertible into cash.
The mandatory reserve is an accounting reserve.
At December 31, 2010, our reserves totaled
$2.2 billion. At such date, the mandatory reserve amounted
to $382.2 million, or 13.6% of subscribed paid-in and
un-paid capital, and the general reserve amounted to
$1.8 billion.
10
Callable
Capital
In addition to our subscribed paid-in and un-paid capital, our
shareholders have subscribed to callable capital totaling
$1.4 billion at December 31, 2010. Our callable
capital may be called by the Board of Directors to meet our
obligations only to the extent that we are unable to meet such
obligations with our own resources.
The Constitutive Agreement provides that the obligation of
shareholders to pay for the shares of callable capital, upon
demand by the Board of Directors, continues until such callable
capital is paid in full. Thus, we consider the obligations of
shareholder countries to pay for their respective callable
capital subscriptions to be binding obligations backed by the
full faith and credit of the respective governments. If the
callable capital were to be called, the Constitutive Agreement
requires that the call be prorated among shareholders in
proportion to their shareholdings.
11
SELECTED
FINANCIAL INFORMATION
The following selected financial information as of and for the
years ended December 31, 2010 and 2009 has been derived
from our financial statements for those periods, which were
audited by Lara Marambio & Asociados, a member firm of
Deloitte Touche Tohmatsu Limited. The following selected
financial information as of and for the year ended
December 31, 2008 has been derived from our financial
statements for that period, which were audited by Rodríguez
Velázquez & Asociados (formerly Alcaraz Cabrera
Vázquez), a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative, a
Swiss entity (hereafter KPMG in Venezuela). The
audit reports have been included on pages F-4 and F-5 of this
document. Our financial statements have been prepared in
accordance with U.S. Generally Accepted Accounting
Principles (U.S. GAAP). The selected financial information
as of and for the three months periods ended March 31, 2011
and March 31, 2010 has been derived from our unaudited
condensed interim financial information and includes
adjustments, consisting of normal recurring adjustments, that we
consider necessary for a fair presentation of our financial
position at such dates and our results of operations for such
periods. The results of the three-month period ended
March 31, 2011 are not necessarily indicative of results to
be expected for the full year 2011. The selected financial
information should be read in conjunction with our audited
financial statements and notes thereto, our unaudited condensed
interim financial information and the notes thereto and the
section titled Managements Discussion and Analysis
of Financial Condition and Results of Operations in this
prospectus.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
Three Months Ended March 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2011
|
|
|
2010
|
|
|
|
(in U.S.$ thousands, except ratios)
|
|
|
Income Statement Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
385,555
|
|
|
$
|
483,853
|
|
|
$
|
652,380
|
|
|
$
|
99,124
|
|
|
$
|
86,769
|
|
Interest expense
|
|
|
(173,215
|
)
|
|
|
(188,725
|
)
|
|
|
(327,927
|
)
|
|
|
(47,141
|
)
|
|
|
(37,541
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
212,340
|
|
|
|
295,128
|
|
|
|
324,453
|
|
|
|
51,983
|
|
|
|
49,228
|
|
(Credit) provision to allowance for loan losses
|
|
|
(2,990
|
)
|
|
|
(1,656
|
)
|
|
|
(22,970
|
)
|
|
|
7,800
|
|
|
|
7,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision to allowance for loan losses
|
|
|
215,330
|
|
|
|
296,784
|
|
|
|
347,423
|
|
|
|
44,183
|
|
|
|
42,191
|
|
Non-interest income
|
|
|
7,900
|
|
|
|
13,997
|
|
|
|
9,531
|
|
|
|
6,088
|
|
|
|
1,421
|
|
Non-interest expenses
|
|
|
(70,804
|
)
|
|
|
(62,709
|
)
|
|
|
(58,963
|
)
|
|
|
(18,018
|
)
|
|
|
(15,753
|
)
|
Net income before unrealized changes in fair value related
financial instruments
|
|
|
152,426
|
|
|
|
248,072
|
|
|
|
297,991
|
|
|
|
32,253
|
|
|
|
27,859
|
|
Unrealized changes in fair value related to financial instruments
|
|
|
13,713
|
|
|
|
(13,363
|
)
|
|
|
|
|
|
|
(4,701
|
)
|
|
|
12,861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes arising from fair value hedges
|
|
|
|
|
|
|
|
|
|
|
13,483
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
166,139
|
|
|
$
|
234,709
|
|
|
$
|
311,474
|
|
|
$
|
27, 552
|
|
|
$
|
40,720
|
|
Balance Sheet Data (end of period)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets (net of allowance)(1)
|
|
$
|
6,496,682
|
|
|
$
|
5,954,581
|
|
|
|
|
|
|
|
7,356,667
|
|
|
$
|
6,512,070
|
|
Non-current assets
|
|
|
12,050,193
|
|
|
|
9,932,488
|
|
|
|
|
|
|
|
12,703,848
|
|
|
|
10,284,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
18,546,875
|
|
|
$
|
15,887,069
|
|
|
|
|
|
|
$
|
20,060,515
|
|
|
$
|
16,796,275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities(2)
|
|
|
5,155,591
|
|
|
|
4,590,199
|
|
|
|
|
|
|
|
7,002,923
|
|
|
|
5,438,043
|
|
Long-term liabilities
|
|
|
7,638,097
|
|
|
|
6,010,066
|
|
|
|
|
|
|
|
7,241,172
|
|
|
|
5,988,026
|
|
Total liabilities
|
|
|
12,793,688
|
|
|
|
10,600,265
|
|
|
|
|
|
|
|
14,244,095
|
|
|
|
11,426,069
|
|
Total stockholders equity
|
|
|
5,753,187
|
|
|
|
5,286,804
|
|
|
|
|
|
|
|
5,816,420
|
|
|
|
5,370,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders equity
|
|
$
|
18,546,875
|
|
|
$
|
15,887,069
|
|
|
|
|
|
|
$
|
20,060,515
|
|
|
$
|
16,796,275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio and Equity Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans before allowance
|
|
$
|
13,783,043
|
|
|
$
|
11,686,689
|
|
|
$
|
10,184,068
|
|
|
$
|
14,951,661
|
|
|
$
|
12,380,424
|
|
Allowance for loan losses
|
|
|
141,364
|
|
|
|
143,911
|
|
|
|
143,167
|
|
|
|
149,432
|
|
|
|
150,950
|
|
Equity investments
|
|
|
94,721
|
|
|
|
85,482
|
|
|
|
75,066
|
|
|
|
72,897
|
|
|
|
90,703
|
|
Selected Financial Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average total stockholders equity(3)(4)
|
|
|
3.0
|
%
|
|
|
4.7
|
%
|
|
|
7.2
|
%
|
|
|
1.9
|
%
|
|
|
3.0
|
%
|
Return on average paid-in capital(4)(5)
|
|
|
6.3
|
%
|
|
|
9.9
|
%
|
|
|
14.9
|
%
|
|
|
3.8
|
%
|
|
|
6.4
|
%
|
Return on average assets(4)(6)
|
|
|
1.0
|
%
|
|
|
1.6
|
%
|
|
|
2.4
|
%
|
|
|
0.6
|
%
|
|
|
1.0
|
%
|
Administrative expenses divided by average assets(4)
|
|
|
0.4
|
%
|
|
|
0.4
|
%
|
|
|
0.4
|
%
|
|
|
0.4
|
%
|
|
|
0.4
|
%
|
Overdue loan principal as a percentage of loan portfolio
(excluding non-accrual loans)
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
Non-accrual loans as a percentage of loan portfolio
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
Allowance for losses as a percentage of loan portfolio
|
|
|
1.0
|
%
|
|
|
1.2
|
%
|
|
|
1.4
|
%
|
|
|
1.0
|
%
|
|
|
1.2
|
%
|
|
|
|
(1)
|
|
Includes cash, deposits, trading,
other investments, accrued interest and commissions receivable
and loans with remaining maturities less than one year minus
allowance for losses.
|
|
(2)
|
|
Includes deposits, commercial
paper, advances and short term borrowings, accrued interest
payable, bonds with remaining maturities less than one year and
borrowings and other obligations with remaining maturities less
than one year.
|
|
(3)
|
|
Net income divided by average total
stockholders equity.
|
|
(4)
|
|
For the three-month periods, the
amounts have been annualized.
|
|
(5)
|
|
Net income divided by average
subscribed and paid-in capital.
|
|
(6)
|
|
Net income divided by average total
assets.
|
12
MANAGEMENTS
DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with our
audited financial statements and notes thereto beginning on
page F-6
and the unaudited interim financial information and notes
thereto beginning on
page F-37
of this prospectus.
Summary
of Results
During the three years ended December 31, 2010, our net
income decreased at a compound average annual rate of
approximately 27.0%. Our net income for the year ended
December 31, 2010 was $166.1 million, representing a
decrease of $68.6 million, or 29.2%, over net income for
2009. This decrease resulted principally from the decrease in
market interest rates. For the year ended December 31,
2009, our net income was $234.7 million, representing a
decrease of $76.8 million, or 24.6%, over net income of
$311.5 million for 2008. This decrease also resulted
principally from a decrease in market interest rates.
Our net income for the three-month period ended March 31,
2011 was $27.6 million, representing a decrease of
$13.1 million, or 32.3%, compared to net income of
$40.7 million for the corresponding period in 2010. This
decrease resulted principally from the decline in market
interest rates compared to the same period in 2010.
The reported percentage increase (decrease) in real GDP for 2010
for each of the full member shareholder countries at
December 31, 2010 was as follows: Bolivia, 4.0%; Brazil,
7.5%; Colombia, 4.3%; Ecuador, 3.3%; Panama, 7.5%; Peru, 8.8%;
Uruguay, 8.5%; and Venezuela, (1.4%).
The recent financial crisis and global economic recession
affected our business but have not had a material adverse effect
on our results of operations or financial position. Based on our
investment strategy and given our investment guidelines, our
liquid investment portfolio is of short duration and has no
material exposure to structured products such as mortgage-backed
or asset-backed securities. Moreover, certain recent
developments, such as the European sovereign debt crisis and
fluctuations in commodity prices, have not thus far impacted our
operations. We have no outstanding loans to European Union
countries in our loan portfolio, and our exposure to European
Union countries in our liquidity portfolio is principally in the
form of securities and is not material in amount.
The volatility of credit spreads during the past three years has
varied our borrowing costs, the effect of which was partially
offset by changing the interest rates we charge our borrowers
(after swaps). During 2010, the LIBOR rate, which is the basis
for the interest payable on both our external debt and on the
loans in our loan portfolio, remained low, which resulted in a
lower net interest margin for our business.
Both 2010 and 2009 have been characterized by a strong growth in
our loan portfolio as a result of our strategy to expand our
shareholder base, principally through additional capital
subscriptions by several of our existing shareholder countries,
as well as the issuance of shares to new shareholder countries.
Additionally, the global financial crisis has also increased
demand in loans from our shareholder countries. These two main
drivers led to a loan portfolio growth of 16.7% in 2010 compared
to 2009. We do not expect that our loan portfolio will be
materially affected by the activities of other development banks
in the region, since financing needs by our shareholder
countries exceed the current supply of lending resources; we
believe that activities of other development banks are
complementary to our lending operations.
Critical
Accounting Policies
General
Our financial statements are prepared in accordance with
U.S. GAAP, which requires us in some cases to use estimates
and assumptions that may affect our reported results and
disclosures. We describe our significant accounting policies in
Note 1 (Significant Accounting Policies) to our
audited financial statements. We believe that some of the more
significant accounting policies we use to present our financial
results, involve the use of accounting estimates that we
consider to be critical because: (1) they require
significant
13
management judgment and assumptions about matters that are
complex and inherently uncertain; and (2) the use of a
different estimate or a change in estimate could have a material
impact on our reported results of operations or financial
condition. Specifically, the estimates we use to determine the
allowance for loan losses are critical accounting estimates.
Additionally, the fair values for some financial assets and
liabilities recorded in CAFs financial statements are
determined according to the procedures established by the
accounting pronouncement ASC 820. As of the date of this
prospectus, we have not changed or reclassified any transaction
from one level to another pursuant to the hierarchy reflected in
ASC 820, thereby maintaining consistency in the application
of accounting principles in this matter.
Income
Statement
Interest
Income
Three Months Ended March 31, 2011 and
2010. For the three-month period ended
March 31, 2011, our interest income was $99.1 million,
representing an increase of $12.3 million, or 14.2%,
compared to interest income of $86.8 million for the
corresponding period in 2010. This increase resulted principally
from a corresponding increase in the loan portfolio.
2010, 2009 and 2008. For the year ended
December 31, 2010, our interest income was
$385.5 million, representing a decrease of
$98.3 million, or 20.3%, compared to interest income of
$483.9 million for the year ended December 31, 2009.
Interest income for the year ended December 31, 2009
represented a decrease of $168.5 million, or 25.8%,
compared to interest income of $652.4 million for the year
ended December 31, 2008. These decreases resulted
principally from a decline in market interest rates, to which
rates on our loans are related, that more than offset the impact
of increased outstanding loan levels.
Interest
Expense
Three Months Ended March 31, 2011 and
2010. For the three-month period ended
March 31, 2011, our interest expense was
$47.1 million, representing an increase of
$9.6 million, or 25.6%, compared to interest expense of
$37.5 million for the corresponding period in 2010. This
result was principally due to a decrease in interest rates, as
well as an increase in liabilities to fulfill higher funding
requirements caused by the increase in loan portfolio.
2010, 2009 and 2008. For the year ended
December 31, 2010, our interest expense was
$173.2 million, representing a decrease of
$15.5 million, or 8.2%, from our interest expense of
$188.7 million for the year ended December 31, 2009.
This decrease resulted primarily from a decrease in market
interest rates that more than compensated for an increase in
outstanding debt. Interest expense for the year ended
December 31, 2009 represented a decrease of
$188.7 million, or 42.4%, from our interest expense of
$327.9 million for the year ended December 31, 2008.
This decrease resulted principally from a decrease in market
interest rates, as well as an increase in liabilities to fulfill
higher funding requirements caused by the increase in loan
portfolio.
Net
Interest Income
Three Months Ended March 31, 2011 and
2010. For the three-month period ended
March 31, 2011, our net interest income was
$52.0 million, representing an increase of
$2.8 million, or 5.6%, compared to net interest income of
$49.2 million for the corresponding period in 2010. Our net
interest income margin decreased to 1.2% for the three-month
period ended March 31, 2011, as compared to 1.3% for the
corresponding period in 2010, principally as a result of
increases in interest expense at a higher rate than interest
income.
2010, 2009 and 2008. For the year ended
December 31, 2010, our net interest income was
$212.3 million, representing a decrease of
$82.8 million, or 28.1%, over net interest income of
$295.1 million for the year ended December 31, 2009,
which, in turn, represented a decrease of $29.3 million, or
9.0%, as compared to our net interest income of
$324.5 million for the year ended December 31, 2008.
This decrease resulted principally from
14
a decrease in market interest rates, as well as an increase in
liabilities to fulfill higher funding requirements caused by the
increase in loan portfolio.
Our net interest income margin was 1.3% in 2010, compared to
2.1% in 2009 and 2.6% in 2008. This decrease in net interest
income margin in 2010 resulted principally from a decrease in
market interest rates given our high capitalization ratio.
Provision
for Loan Losses
Three Months Ended March 31, 2011 and
2010. For the three-month period ended
March 31, 2011, we recorded a provision for loan losses of
$7.8 million, compared with a credit for loan losses of
$7.0 million for the corresponding period in 2010. Changes
in the provision for loan losses were mainly due to a
corresponding increase in our loan portfolio. The allowance for
loan losses as a percentage of the loan portfolio was 1.0% at
March 31, 2011, compared to 1.2% at March 31, 2010.
2010, 2009 and 2008. For the year ended
December 31, 2010, our credit for loan losses was
$3.0 million, compared to a credit for loan losses of
$1.7 million for the year ended December 31, 2009 and
a credit for loan losses of $23.0 million for the year
ended December 31, 2008. The allowance for loan losses as a
percentage of the loan portfolio was 1.0% for 2010, 1.2% for
2009 and 1.4% for 2008. This decrease over time is due to an
improvement in some of our shareholder countries credit
ratings.
The credits and provisions in the periods described above
reflect managements estimates for both general and
specific provisions. The specific provision is related to loans
that have been adversely classified. The calculation of the
amount set aside as the general provision is based on the
sovereign ratings of the shareholder countries and their related
probabilities of default, as provided by the major rating
agencies, adjusted to take into account our privileges and
immunities in our full member shareholder countries. The
specific provision is calculated according to the requirements
of
ASC 310-10-35.
Non-Interest
Income
Our non-interest income consists principally of commissions,
dividends and equity in earnings of investments and other income.
Three Months Ended March 31, 2011 and
2010. For the three-month period ended
March 31, 2011, our non-interest income was
$6.1 million, representing an increase of
$4.7 million, or 328.4%, over non-interest income of
$1.4 million for the corresponding period in 2010. This
increase resulted principally from an increase in dividends, as
well as an increase in gains in equity investments.
2010, 2009 and 2008. For the year ended
December 31, 2010, our total non-interest income was
$7.9 million, representing a decrease of $6.1 million,
or 43.5%, from total non-interest income of $14.0 million
for the year ended December 31, 2009, which represented an
increase of $4.5 million, or 46.9%, compared to total
non-interest income of $9.5 million for the year ended
December 31, 2008. The decrease in total non-interest
income in 2010 over 2009 resulted principally from a decrease in
dividends equity investments, and the increase in 2009 as
compared to 2008 resulted principally from an increase in
dividends and equity in earnings of investees.
Non-Interest
Expenses
Our non-interest expenses consist principally of administrative
expenses, representing 98.5% of total non-interest expenses in
2010.
Three Months Ended March 31, 2011 and
2010. For the three-month period ended
March 31, 2011, our non-interest expenses totaled
$18.0 million, representing an increase of
$2.3 million, or 14.4%, compared to non-interest expenses
of $15.8 million for the corresponding period in 2010. More
than 99.6% and 95.9% of non-interest expenses in the three-month
periods ended March 31, 2011 and March 31, 2010,
respectively, were comprised of administrative expenses. For the
three-month period ended March 31, 2011, our general
15
and administrative expenses as a percentage of our total average
assets were 0.4%, at the same level as for the same period in
2010.
2010, 2009 and 2008. For the year ended
December 31, 2010, our total non-interest expenses were
$70.8 million, representing an increase of
$8.1 million, or 12.9%, over total non-interest expenses of
$62.7 million for the year ended December 31, 2009,
representing an increase of $3.7 million, or 6.4%, over
total non-interest expenses of $59.0 million for the year
ended December 31, 2008. The increase in 2010 resulted
principally from an increase in administrative expenses given
the expansion of our full member shareholder country base. The
increase in 2009 resulted principally from an increase in
administrative expenses given the expansion of our full member
shareholder country base and the creation of two business hubs
to be located in our current offices in Panama and Uruguay.
For the year ended December 31, 2010, administrative
expenses were $69.8 million, or 0.4% of our total average
assets, representing an increase of $7.2 million over
administrative expenses for the year ended December 31,
2009. For the year ended December 31, 2009, administrative
expenses were $62.6 million, or 0.4% of our total average
assets, representing an increase of $6.1 million over
administrative expenses of $56.5 million for the year ended
December 31, 2008. These increases resulted principally
from the impact of local currency expenses and inflation in
Venezuela. Nevertheless, from December 31, 2008 to
December 31, 2010, our administrative expenses have
decreased as a percentage of our total average assets.
Equity investments, which do not have readily determinable fair
values and in which we have a participation of less than 20% of
the investees equity, are required to be recorded at cost
according to U.S. GAAP. Also, management is required to
assess the value of these investments and determine whether any
value impairment is temporary or other than temporary.
Impairment charges must be taken once management has determined
that the loss of value is other than temporary. As a result of
the analysis of these equity investments, management determined
impairment charges as follows: $0 in 2010, $0 in 2009 and
$1.2 million in 2008. These impairment charges represented
0.0%, 0.0% and 1.5% of our equity investments at
December 31, 2010, 2009 and 2008, respectively.
The impairment charges were distributed as follows according to
the type of investment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
|
(In U.S.$ thousands)
|
|
|
Single companies
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Investment funds
|
|
$
|
0.0
|
|
|
$
|
0.0
|
|
|
$
|
1,157.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
0.0
|
|
|
$
|
0.0
|
|
|
$
|
1,157.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
Sheet
Total
Assets and Liabilities
March 31, 2011. At March 31, 2011,
our total assets were $20.1 billion, representing an
increase of $1.5 billion, or 8.1%, over total assets of
$18.6 billion at December 31, 2010. At March 31,
2011, our total liabilities were $14.2 billion,
representing an increase of $1.4 billion, or 11.3%, over
total liabilities of $12.8 billion at December 31,
2010. The increase in assets resulted primarily from a
corresponding increase in the loan portfolio and the increase in
liabilities is explained by an increase in funding to respond to
the demand for loans from borrowers in our shareholder countries.
2010 and 2009. At December 31, 2010, our
total assets were $18.6 billion, representing an increase
of $2.7 billion, or 16.7%, over total assets of
$15.9 billion at December 31, 2009. The increase in
our total assets principally reflected an increase in liquid
assets as well as in the loan portfolio. At December 31,
2010, our total liabilities were $12.8 billion,
representing an increase of $2.2 billion, or 20.7%, over
total liabilities of $10.6 billion at December 31,
2009. The increase in our total liabilities resulted from higher
funding requirements.
16
Asset
Quality
Overdue
Loans
March 31, 2011. There were $0.0 overdue
loans at March 31, 2010.
2010 and 2009. There were $0.0 overdue loans
at December 31, 2010. There were $0.0 million in
overdue loans at December 31, 2009.
Non-Accrual
Loans
March 31, 2011. There were $0.0 loans in
non-accrual status at March 31, 2011.
2010 and 2009. There were $0.0 loans in
non-accrual status at December 31, 2010 and $0.0 loans in
non-accrual status at December 31, 2009.
Restructured
Loans
March 31, 2011. At March 31, 2011,
the total principal amount of outstanding restructured loans was
$3.6 million, or 0.02% of the total loan portfolio.
2010 and 2009. At December 31, 2010, the
total principal amount of outstanding restructured loans was
$3.6 million, or 0.03% of the total loan portfolio, and was
unchanged from the level at December 31, 2009. The total
amount represented one loan to a private sector borrower in
Bolivia.
Loan
Write-offs and Recoveries
March 31, 2011. There were $0.0 loan
write-offs during the three-month period ended March 31,
2011, and there were $0.0 write-offs in the corresponding period
of 2010. We booked recoveries of $268 thousand during the
three-month period ended March 31, 2011 and $1.8 thousand
during the corresponding period of 2010.
2010 and 2009. There were $0.0 loan write-offs
in 2010 and 2009. We booked recoveries of $0.4 million and
$2.4 million during 2010 and 2009, respectively.
See Operations of CAF Asset Quality for
further information regarding our asset quality. See
Operations of CAF Loan Portfolio for
details regarding the distribution of our loans by country and
economic sector.
Off-Balance
Sheet Transactions
We enter into off-balance sheet arrangements in the normal
course of our business to facilitate our business and objectives
and reduce our exposure to interest rate and foreign exchange
rate fluctuations. These arrangements, which may involve
elements of credit and interest rate risk in excess of amounts
recognized on our balance sheet, primarily include
(1) credit agreements subscribed and pending disbursement,
(2) lines and letters of credit for foreign trade and
(3) partial credit guarantees of shareholder country
obligations. For further discussion of these arrangements, see
Note 20 (Commitments and Contingencies) to our
audited financial statements.
Liquidity
We seek to ensure adequate liquidity by maintaining liquid
assets in an amount exceeding the greater of:
(1) 45% of total undisbursed project loan
commitments; and
(2) 35% of the sum of our next 12 months
(a) estimated debt service, plus
(b) estimated project loan disbursements.
Our investment policy requires that at least 80% of our liquid
assets be held in the form of investment grade instruments rated
A-/A3/A- or better by a U.S. nationally-recognized
statistical rating organization. The
17
remaining portion may be invested in non-investment grade
instruments rated B-/Ba3/B or better by a
U.S. nationally-recognized statistical rating organization.
Our investment policy emphasizes security and liquidity over
yield.
March 31, 2011. At March 31, 2011,
our liquid assets consisted of $4.5 billion of cash, time
deposits and securities, of which 97.6% were invested in
investment grade instruments rated A-/A3/A- or better by a
U.S. nationally-recognized statistical rating organization;
37.9% of our liquid assets were invested in time deposits in
financial institutions, 21.6% in commercial paper, 11.1% in
corporate and financial institution bonds, 5.5% in certificates
of deposit, 9.4% in bonds of
non-U.S. government
and government entities and 14.4% in other instruments.
2010 and 2009. At December 31, 2010, our
liquid assets consisted of $4.1 billion of cash, time
deposits and securities, of which 97.4% were invested in
investment grade instruments rated A-/A3/A- or better by a
U.S. nationally-recognized statistical rating organization;
37.6% of our liquid assets were invested in time deposits in
financial institutions, 21.4% in commercial paper, 16.1% in
corporate and financial institution bonds, 8.3% in certificates
of deposit, 6.3% in bonds of
non-U.S. government
and government entities and 10.4% in other instruments. At
December 31, 2009, our liquid assets amounted to
$3.7 billion, of which 97.0% were invested in instruments
rated A-/A3/A- or better by a U.S. nationally-recognized
statistical rating organization; 39.1% of our liquid assets were
invested in time deposits in financial institutions, 28.5% in
commercial paper, 13.6% in corporate and financial institution
bonds, 9.6% in certificates of deposit, 1.2% in bonds of
non-U.S. government
and government entities and 8.1% in other instruments.
Strategy
and Capital Resources
Our business strategy is to provide financing for projects,
trade and investment in the shareholder countries. Management
expects our assets to grow in the future, which will increase
our need for additional funding; likewise, maturing debt
obligations will need to be replaced. In addition to scheduled
capital increases, management anticipates a need to increase
funds raised in the international capital markets and to
maintain funding through borrowings from multilateral and other
financial institutions. While the substantial majority of our
equity will continue to be held by full member shareholder
countries, we intend to continue offering equity participation
to associated shareholder countries through the issuances of
Series C shares to such countries. See Capital
Structure.
We intend to continue our programs to foster sustainable growth
within the shareholder countries, and to increase our support
for the private sector within our markets, either directly or
through financial intermediaries. See Operations of
CAF below.
18
OPERATIONS
OF CAF
CAFs purpose is to foster and promote economic
development, social development and integration within the
shareholder countries through the efficient use of financial
resources in conjunction with both private sector and public
sector entities. To accomplish our objective, we primarily
engage in short, medium and long-term loans and guarantees. To a
lesser extent, we make limited equity investments in funds and
companies, and provide technical and financial assistance, as
well as administrative services for certain regional funds.
CAF also provides lending for projects in associated shareholder
countries, including but not limited to projects that promote
trade or integration with full member shareholder countries.
Business
Management of CAF
Our business management is divided into two broad functions:
client relationship management and financial management.
Client
Relationship Management
Our client relationship management function is conducted by a
group of relationship managers and sector and product
specialists who are responsible for the development,
structuring, appraisal and implementation of our lending
activities. Clients are identified through direct contact,
referrals from our representative offices and referrals from
third parties such as shareholders, multilateral institutions,
international financial institutions and other clients.
Our client relationship management function is currently
fulfilled by the following five departments, each headed by a
Vice President:
|
|
|
|
|
Country Programs, which is responsible for our
relationships with governments, public sector corporations and
financial institutions and for the development of a global
approach to business activities in each of the shareholder
countries;
|
|
|
|
Infrastructure, which is responsible for the financing of
public infrastructure projects and the analysis of public
policies within the different development sectors;
|
|
|
|
Corporate and Financial Sector, which is responsible for
our relationships with private sector corporations and financial
institutions, while simultaneously furnishing advisory services
to our clients;
|
|
|
|
Social and Environmental Development, which is
responsible for investments in social and environmental areas
and in micro, small and medium size enterprises; and
|
|
|
|
Development Strategies and Public Policies, which is
responsible for developing strategies, policies and initiatives
within CAFs mission and objectives, as well as
coordinating the financing of SMEs (small and medium
enterprises).
|
The client relationship management group is also responsible for
reviewing and developing lending policies and procedures and for
monitoring the quality of the loan portfolio on an ongoing
basis. In these duties, the client relationship management group
is assisted by our Credit Administration Office and our
Corporate Comptroller Office.
Financial
Management
Our financial management group is responsible for managing our
funded debt, as well as our liquid assets. This group is
responsible for developing, structuring, appraising and
implementing our borrowing activities. It is also responsible
for reviewing and developing policies and procedures for the
monitoring of our financial well-being and for the proper
management of liquidity. The financial management group is
headed by the Vice President of Finance.
19
The asset distribution group is a part of the financial
management group, and it has two basic responsibilities:
(1) structuring A/B loan transactions in which
we loan a portion of the total amount and other financial
institutions loan the remainder; and
(2) selling loans to international banks interested in
increasing their exposure in the shareholder countries.
The staff of our financial management group works in close
coordination with our client relationship managers. Our client
relationship management group and financial management group are
supported by the financial control and budget, human resources,
information systems and legal departments.
Loan
Portfolio
We extend medium-term and long-term loans to finance both public
sector and private sector projects in the shareholder countries,
either directly to a project or through a financial intermediary
in a shareholder country that lends the funds to the appropriate
project. To a lesser extent, we also provide loans to finance
trade by and among the shareholder countries. Loans may be used
for any component of a project, subject to exceptions relating
to, among other things, the acquisition of land and the payment
of taxes. We endeavour to concentrate our lending activities on
national and multinational economic development projects,
especially those involving electricity, gas and water supply,
transport or communications in two or more shareholder countries
and those that generate foreign exchange.
We provide credit lines to financial institutions in the
shareholder countries. The purpose of these credit lines is to
enable these institutions to finance projects that fall within
our overall objectives, but that are not sufficiently large to
justify our being directly involved in the project. The relevant
financial institutions are thereby provided with funds that
enable them to strengthen their financial resources within
parameters previously agreed to with us. Under such
multisectoral credit lines, we take the credit risk of the
financial intermediary and also have recourse to the underlying
borrowers. The financial intermediaries are responsible for
repayment of their loans from us regardless of whether the
underlying borrower repays the financial intermediary.
We endeavour to strengthen trade by and among shareholder
countries and to assist companies in the shareholder countries
to access world markets. Our trade-financing activities are
complementary to those of the export credit agencies of
shareholder countries because we finance qualifying import or
export operations, whereas those agencies generally are limited
to providing financing only for goods exported from the
respective countries. Through trade-financing, we finance the
movement of merchandise. We also provide credit support to trade
activities through the confirmation of letters of credit in
situations where the issuing local bank would not be perceived
as sufficiently creditworthy by financial institutions in the
beneficiarys country.
In 1997, we began making a portion of our loans through an
A/B loan program, where CAF acts as lender of record
for the entire loan and sells non-recourse participations in the
B portion of the loan to commercial banks. The
A portion of the loan is made directly to the
borrower by us. Under the B portion, banks provide
the funding and assume the credit risk; CAF does not provide
funding under the B portion and, therefore, does not
assume any credit risk. Because we act as the lender of record
for the entire loan, thereby operating as the one official
lender in the transaction, commercial banks are exempted from
country risk provisions and, therefore, the borrower receives an
interest rate that is generally lower than the rate available in
the commercial markets. The lower interest rate is a result,
among other factors, of the reduced inherent risk resulting from
our status as a multilateral financial institution.
Our loan pricing is typically based on our cost of funds plus a
spread to cover operational costs and credit risks. All
sovereign-risk loans are made at the same spread for comparable
maturities. Generally, our loans are made on a floating interest
rate basis. Under certain exceptional circumstances, loans may
be made at fixed interest rates, provided that the corresponding
funding is obtained at fixed interest rates. We generally charge
a
20
loan origination fee up to 1.0% of the total loan amount and a
commitment fee equal to 0.25% per annum on undisbursed loan
balances. Substantially all loans are denominated in
U.S. dollars.
Our policies generally require that loans to public sector
entities have the benefit of sovereign guarantees. Exceptions
have been made for a few highly-capitalized entities. Loans to
private sector entities other than banks generally must have the
benefit of bank or other guarantees, or other collateral
acceptable to us.
During the two-year period ended December 31, 2010, our
total assets grew at a compound average annual rate of 14.2%, in
part reflecting the economic growth in most of the full member
shareholder countries. At December 31, 2010, our total
assets were $18.5 billion, of which $13.8 billion, or
74.3%, were disbursed and outstanding loans. At
December 31, 2010, the B loan portion of our
A/B loan transactions totaled $1.0 billion. The
tables on loan exposure that follow reflect only the
A portion of the respective A/B loan
transactions since we only assume the credit risk of the
A loan portion. During this two-year period, our
lending portfolio grew at a compound average annual rate of
16.3%. Our management expects further loan growth to be funded
by additional borrowings and deposits, retained earnings and
planned capital increases.
Loans to
Public and Private Sector Borrowers
Our total loan portfolio outstanding, classified by public
sector and private sector borrowers, was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
|
(in U.S.$ millions)
|
|
|
Public Sector
|
|
|
80.2
|
%
|
|
|
11,050
|
|
|
|
9,324.4
|
|
|
|
7,824.5
|
|
Private Sector
|
|
|
19.8
|
%
|
|
|
2,728
|
|
|
|
2,355.7
|
|
|
|
2,357.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100.0
|
%
|
|
|
13,778.0
|
|
|
|
11,680.1
|
|
|
|
10,182.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustments on hedging activities
|
|
|
|
|
|
|
5.1
|
|
|
|
6.6
|
|
|
|
2.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
13,783.0
|
|
|
|
11,686.7
|
|
|
|
10.184.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans by
Borrowing Country
Our total loan portfolio outstanding, classified on a
country-by-country
basis, according to the location of the borrower, was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
|
(in U.S.$ millions)
|
|
|
Bolivia
|
|
|
9.4
|
%
|
|
|
1,301.1
|
|
|
|
1,157.7
|
|
|
|
1,102.1
|
|
Brazil
|
|
|
8.1
|
%
|
|
|
1,116.0
|
|
|
|
1,033.7
|
|
|
|
825.4
|
|
Colombia
|
|
|
14.3
|
%
|
|
|
1,965.9
|
|
|
|
1,688.7
|
|
|
|
1,705.3
|
|
Ecuador
|
|
|
17.7
|
%
|
|
|
2,436.6
|
|
|
|
2,051.7
|
|
|
|
2,017.6
|
|
Panama
|
|
|
1.0
|
%
|
|
|
139.6
|
|
|
|
126.1
|
|
|
|
100.1
|
|
Peru
|
|
|
15.8
|
%
|
|
|
2,181.7
|
|
|
|
1,864.5
|
|
|
|
1,769.7
|
|
Uruguay
|
|
|
4.8
|
%
|
|
|
656.7
|
|
|
|
581.5
|
|
|
|
231.6
|
|
Venezuela
|
|
|
16.2
|
%
|
|
|
2,227.6
|
|
|
|
1,765.1
|
|
|
|
1,535.1
|
|
Other(1)
|
|
|
12.7
|
%
|
|
|
1,752.7
|
|
|
|
1,411.0
|
|
|
|
895.1
|
|
|
|
|
100.0
|
%
|
|
|
13,778.0
|
|
|
|
11,680.1
|
|
|
|
10,182.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustments on hedging activities
|
|
|
|
|
|
|
5.1
|
|
|
|
6.6
|
|
|
|
2.0
|
|
Total
|
|
|
|
|
|
|
13,783.0
|
|
|
|
11,686.7
|
|
|
|
10,184.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Principally loans outside the full member shareholder countries
at December 31, 2010. |
21
Loans
Approved and Disbursed by Country
Our loan approval process is described under
Credit Policies. After approval,
disbursements of a loan proceed in accordance with the
contractual conditions of the loan agreement.
Set forth below is a table of the amount of loans approved and
loans disbursed, classified by country, for each of the years
indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Approved
|
|
|
Disbursed(1)
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
|
(in U.S.$ millions)
|
|
|
Bolivia
|
|
|
426.0
|
|
|
|
510.8
|
|
|
|
559.7
|
|
|
|
253.0
|
|
|
|
216.0
|
|
|
|
444.0
|
|
Brazil
|
|
|
1,980.1
|
|
|
|
907.0
|
|
|
|
1,798.2
|
|
|
|
1,225.7
|
|
|
|
1,021.6
|
|
|
|
950.8
|
|
Colombia
|
|
|
992.1
|
|
|
|
2,050.4
|
|
|
|
1,482.6
|
|
|
|
1,601.5
|
|
|
|
927.0
|
|
|
|
892.3
|
|
Ecuador
|
|
|
900.6
|
|
|
|
872.7
|
|
|
|
603.9
|
|
|
|
721.4
|
|
|
|
289.7
|
|
|
|
443.2
|
|
Panama
|
|
|
312.4
|
|
|
|
232.0
|
|
|
|
634.7
|
|
|
|
23.4
|
|
|
|
6.4
|
|
|
|
15.8
|
|
Peru
|
|
|
1,693.2
|
|
|
|
2,287.1
|
|
|
|
1,447.9
|
|
|
|
2,494.2
|
|
|
|
650.3
|
|
|
|
1,531.4
|
|
Uruguay
|
|
|
120.3
|
|
|
|
590.3
|
|
|
|
600.5
|
|
|
|
95.3
|
|
|
|
377.0
|
|
|
|
170.1
|
|
Venezuela
|
|
|
1,637.8
|
|
|
|
626.6
|
|
|
|
72.2
|
|
|
|
684.7
|
|
|
|
411.8
|
|
|
|
259.7
|
|
Others(2)
|
|
|
2,470.6
|
|
|
|
1,093.8
|
|
|
|
746.1
|
|
|
|
594.5
|
|
|
|
684.0
|
|
|
|
584.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
10,533.0
|
|
|
|
9,170.7
|
|
|
|
7,945.8
|
|
|
|
7,693.7
|
|
|
|
4,583.7
|
|
|
|
5,291.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Includes short-term loans in the amounts of
$4,057.2 million, $3,152.4 million, and
$2,476.4 million, respectively, for each of the years in
the three-year period ended December 31, 2010. |
|
(2) |
|
Loans outside the full member shareholder countries at
December 31, 2010, of which $1,606.8 million was
approved and $282.6 million was disbursed to entities in
Argentina in 2010. |
During the three years ended December 31, 2010, the growth
rate of loans by country was as follows: Bolivia, 9.0%; Brazil,
17.1%; Colombia, 7.6%; Ecuador, 10.4%; Panama, 19.8%; Peru,
11.6%; Uruguay, 91.8%, and Venezuela, 22.6%. The growth of the
loan portfolio during the two-year period ended
December 31, 2010 reflects increases in loan approvals as a
result of the regions economic growth during the period
and our increased share of infrastructure financings in the
region.
Loans to associated shareholder countries holding Series
C shares (as described under Capital
Structure General) totaled
$1,752.7 million in 2010, compared to loans to associated
shareholder countries holding Series C shares
totaling $1,411.0 million and $2,052.3 million in 2009
and 2008, respectively. To date, our loans in associated
shareholder countries have primarily been to Brazilian and
Argentinean borrowers; Brazil and Argentina became full member
shareholders countries on January 7, 2010 and
February 25, 2011, respectively. Management expects loans
to the new full member shareholder countries (Argentina, Brazil,
Panama and Uruguay) to increase as a percentage of the total
loan portfolio.
Management anticipates that our loan portfolio will continue to
grow as a result of our strategy to expand our shareholder base,
both by issuing shares to new shareholder countries and by
additional capital subscriptions by existing shareholder
countries, which may result in increased loan demand for
projects in such countries.
22
Distribution
of Loans by Industry
At December 31, 2010, our loan portfolio outstanding was
distributed by industry as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total by
|
|
|
% of
|
|
|
|
Bolivia
|
|
|
Brazil
|
|
|
Colombia
|
|
|
Ecuador
|
|
|
Panama
|
|
|
Peru
|
|
|
Uruguay
|
|
|
Venezuela
|
|
|
Others(2)
|
|
|
Sector
|
|
|
Total
|
|
|
|
(in U.S.$ millions)
|
|
|
Agriculture, hunting and forestry
|
|
|
21.3
|
|
|
|
|
|
|
|
19.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40.5
|
|
|
|
0.3%
|
|
Exploitation of mines and quarries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16.0
|
|
|
|
56.0
|
|
|
|
0.5%
|
|
Manufacturing industry
|
|
|
31.9
|
|
|
|
|
|
|
|
26.9
|
|
|
|
71.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70.0
|
|
|
|
199.8
|
|
|
|
1.5%
|
|
Supply of electricity, gas and water
|
|
|
155.4
|
|
|
|
294.2
|
|
|
|
248.4
|
|
|
|
323.6
|
|
|
|
.163.5
|
|
|
|
0.3
|
|
|
|
196.9
|
|
|
|
1,471.3
|
|
|
|
1,235.9
|
|
|
|
4,089.5
|
|
|
|
29.7%
|
|
Transport, warehousing and communications
|
|
|
861.1
|
|
|
|
185.0
|
|
|
|
462.7
|
|
|
|
458.9
|
|
|
|
1,226.60
|
|
|
|
69.3
|
|
|
|
159.7
|
|
|
|
571.7
|
|
|
|
367.3
|
|
|
|
4,362.5
|
|
|
|
31.7%
|
|
Financial intermediaries(1)
|
|
|
33.6
|
|
|
|
636.7
|
|
|
|
559.2
|
|
|
|
169.2
|
|
|
|
433.1
|
|
|
|
20.0
|
|
|
|
|
|
|
|
17.9
|
|
|
|
82.8
|
|
|
|
1,952.5
|
|
|
|
14.2%
|
|
Social and other infrastructure programs
|
|
|
197.9
|
|
|
|
|
|
|
|
649.5
|
|
|
|
1,413.8
|
|
|
|
308.5
|
|
|
|
|
|
|
|
300.0
|
|
|
|
166.7
|
|
|
|
30.7
|
|
|
|
3,067.2
|
|
|
|
22.3%
|
|
Other activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
1,301.1
|
|
|
|
1,116.0
|
|
|
|
1,965.8
|
|
|
|
2,436.6
|
|
|
|
2,181.7
|
|
|
|
89.6
|
|
|
|
656.7
|
|
|
|
2,227.6
|
|
|
|
1,802.80
|
|
|
|
13,778.0
|
|
|
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Multisectoral credit lines to public sector development banks,
private banks and other institutions. |
|
(2) |
|
This column includes loans outside the full member shareholder
countries at December 31, 2010. |
Maturity
of Loans
At December 31, 2010, our outstanding loans were scheduled
to mature as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016-2022
|
|
|
(in U.S.$ millions)
|
|
Principal amount
|
|
|
2,328.8
|
|
|
|
1,635.9
|
|
|
|
1,377.3
|
|
|
|
1,240.4
|
|
|
|
1,102.5
|
|
|
|
6,093.1
|
|
Ten
Largest Borrowers
The following table sets forth the aggregate principal amount of
loans to our ten largest borrowers, and the percentage such
loans represented of the total loan portfolio, at
December 31, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
As a Percentage
|
|
|
|
|
of Total Loan
|
Borrower
|
|
Amount
|
|
Portfolio
|
|
|
(in U.S.$ millions)
|
|
|
|
Bolivarian Republic of Venezuela
|
|
|
2,227.6
|
|
|
|
16.2
|
%
|
Republic of Ecuador
|
|
|
2,139.0
|
|
|
|
15.5
|
%
|
Republic of Peru
|
|
|
1,440.3
|
|
|
|
10.4
|
%
|
Republic of Argentina
|
|
|
1,246.3
|
|
|
|
9.0
|
%
|
Plurinational State of Bolivia
|
|
|
1,168.5
|
|
|
|
8.5
|
%
|
Republic of Colombia
|
|
|
1,012.9
|
|
|
|
7.3
|
%
|
Oriental Republic of Uruguay
|
|
|
280.0
|
|
|
|
2.0
|
%
|
Banco de Crédito del Peru (Peru)(1)
|
|
|
200.0
|
|
|
|
1.5
|
%
|
Banco Itaú BBA (Brazil)(1)
|
|
|
200.0
|
|
|
|
1.5
|
%
|
Banco Santander Banespa, S.A (Brazil)(1)
|
|
|
185.4
|
|
|
|
1.3
|
%
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
10,100.0
|
|
|
|
73.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
Privately owned financial intermediary. |
23
Selected
Projects
Set out below are examples of projects approved by CAF during
2010 and the respective loan approval amounts.
Argentina
Republic of Argentina/Program to recover the railways of
General Belgrano
Cargas $326 million loan to the
National Government to finance the rehabilitation of the most
extensive railway in Argentina, thereby improving the connection
of the corridor Embarcacion-Avia
Terai-Barranqueras-Rosario.
Bolivia
Plurinational State of Bolivia/ Program of water and
irrigation $126 million loan to partially
guarantee the countrys food supply through various
irrigation projects and the execution of programs to supply
drinkable water.
Brazil
Different Commercial Banks/Financial Lines for total amount of
$1.1 billion to finance foreign trade operations, working
capital and investments in capital goods.
Centrais Elétricas Brasileiras/Eletrobrás project
co- financing $500 million loan to finance
the companys investment projects.
Colombia
Republic of Colombia/Mass transit program
TRANSMILENIO $102 million loan to finance
the construction of the mass transit program TRANSMILENIO in
Bogota, specifically in the Avenue Suba (part of Phase II
of the overall project) and Phase III of said project.
Ecuador
Republic of Ecuador/Program for water supply and
sanitation $300 million loan to support
public investment in the water supply and sanitation sector for
community development PROMADEC Phase II.
Panama
Banco Nacional de Panama/ Program for sanitation of the bay
and city of Panama $120 million loan to
finance the constructions of civil engineering works, materials
and equipment for the Interceptor tunnel, the water
treatment plant of the city and bay of Panama.
Paraguay
Different commercial banks/financial lines for total amount of
$35 million to finance foreign trade operations, working
capital and investments in capital goods.
Peru
Republic of Peru/Program for investing in the improvement and
rehabilitation of road infrastructure
$300 million financing to preserve and update road
infrastructure through the execution of projects that involve
improvement and rehabilitation of highways in different regions
of the country.
Uruguay
Oriental Republic of Uruguay/ Non-revolving contingent line
of credit $120 million loan to support the
national governments strategy for management of its public
debt, to be used as a preventive instrument in the event it
cannot access the international debt markets in conditions
consistent with its strategy.
24
Venezuela
Bolivarian Republic of Venezuela/Program to strengthen the
national electric system $500 million loan
for investments in projects involving the electric sector within
the development of the national electric sector (PDSEN),
particularly for the improvement of the transmission and
distribution of electricity throughout the country.
Other
Activities
Treasury
Operations
Our investment policy requires that at least 80% of our liquid
assets be held in the form of investment grade instruments rated
A-/A3/A- or better by a U.S. nationally-recognized
statistical rating organization. The remaining portion may be
invested in unrated or non-investment grade instruments rated
B-/Ba3/B- or better by a U.S. nationally-recognized
statistical rating organization. At December 31, 2010, our
liquid assets amounted to $4.1 billion of which 37.6% were
invested in time deposits in financial institutions, 21.4% in
commercial paper, 16.1% in corporate and financial institution
bonds, 8.3% in certificates of deposit, 6.3% in bonds of
non-U.S. government
and government entities and 10.4% in other instruments.
Equity
Shareholdings
We may acquire equity shareholdings in new or existing companies
within the shareholder countries, either directly or through
investment funds focused on Latin America. Our equity
participation in any one company is limited to 1% of our
shareholders equity. Our policies do not permit us to be a
companys largest individual shareholder. In addition, the
aggregate amount of our equity investments cannot exceed 10% of
our shareholders equity. At December 31, 2010, the
carrying value of our equity investments totaled
$94.7 million, representing 1.7% of our shareholders
equity. At December 31, 2010, 57.6% of our equity portfolio
was held through investment funds.
Credit
Guarantees
We have developed our credit guarantee product as part of our
role of attracting international financing for our shareholder
countries. As such, we may offer guarantees of private credit
agreements or we may offer public guarantees of obligations of
the securities of third party issuers. We generally offer only
partial credit guarantees with the intention that private
lenders or holders of securities share the risk along with us.
The emphasis of the credit guarantees is to aid in the financing
of public sector projects, though we do not have any internal
policies limiting our credit guarantees to public sector
projects. Also, although we generally intend to guarantee
approximately 25% of the financing for a given project, we may
guarantee up to the full amount of the financing, subject to our
other credit policies. Our internal policies limit the aggregate
outstanding amount of our credit guarantees to a maximum amount
equivalent to 20% of our net worth. The amount of credit
guarantees outstanding was $226.0 million at
December 31, 2010. Those credit guarantees represent 3.93%
of our total net worth and were issued for 2 public sector
projects in Bolivia, a public sector project in Peru, a private
sector project in Mexico, as well as several private sector
companies that are operating in Peru and Bolivia.
Promotion
of Regional Development
As part of our role in advancing regional integration, we
evaluate on an ongoing basis new investment opportunities
intended to benefit the shareholder countries. We also provide
technical and financial assistance for the planning and
implementation of binational and multinational projects, help
obtain capital and technology for these projects and assist
companies in developing and implementing modernization,
expansion and organizational development programs.
25
Fund Administration
In 2010, we acted as fund administrator for several funds funded
by third parties and by our shareholders, the net assets of
which totaled $426.5 million at December 31, 2010.
Each year, these funds are usually recapitalized by our
shareholders through contributions made from CAFs prior
years net income. In 2010, 2009 and 2008, such
contributions to these funds were $93.5 million,
$70.0 million and $92.5 million from the net income of
2010, 2009 and 2008, respectively. These funds are not part of
CAFs accounts.
At December 31, 2010, the principal funds were the
Technical Co-operation Fund, the Fund for Human Development, the
Compensatory Financing Fund, the Fund for the Development of
Small and Medium Enterprises, Latin American Carbon Program, the
Fund for the Promotion of Sustainable Infrastructure Projects,
and the Fund for Border Integration and Cooperation.
Technical
Co-operation Fund
At December 31, 2010, the Technical Co-operation Fund had a
balance of $24.1 million. The purpose of this fund is to
finance research and development studies that may lead to the
identification of project investment opportunities and also, on
occasion, to provide grants that are typically less than
$100,000 each to facilitate the implementation of those projects.
Fund for
Human Development
At December 31, 2010, the Fund for Human Development had a
balance of $20.0 million. This fund is devoted to assist
projects intended to promote sustainable development in socially
excluded communities, as well as to support micro-enterprises
through the financing of intermediary institutions that offer
direct loans to rural and urban micro-entrepreneurs.
Compensatory
Financing Fund
At December 31, 2010, the Compensatory Financing Fund had a
balance of $256.9 million. This fund was created to provide
interest rate compensation when a project providing social or
developmental benefits is otherwise unable to sustain market
interest rates.
Fund for
the Development of Small and Medium Enterprises
At December 31, 2010, the Fund for the Development of Small
and Medium Enterprises had a balance of $35.2 million. The
purpose of this fund is to finance and, in general, support
initiatives that aid the development of an entrepreneurial class
in our shareholder countries.
Latin
American Carbon Program
At December 31, 2010, the Latin American Carbon Program had
a balance of $8.2 million. This program is dedicated to the
implementation of market mechanisms that allow developing
countries to participate in the environmental services market.
The program is engaged in the emerging greenhouse gas reductions
market in Latin America and the Caribbean through several
mechanisms, including those allowed by the Kyoto Protocol.
Fund for
the Promotion of Sustainable Infrastructure Projects
At December 31, 2010, the Fund for the Promotion of
Sustainable Infrastructure Projects had a balance of
$29.3 million. The purpose of this fund is to finance
infrastructure projects and the study thereof, in order to
support regional integration.
Fund for
Border Integration and Cooperation
At December 31, 2010, the Fund for Border Integration and
Cooperation had a balance of $3.2 million. The fund seeks
to strengthen cooperation and border integration at the
bilateral and multilateral levels by
26
supporting and financing the identification, preparation and
execution of high-impact projects that promote sustainable human
development in the border regions of CAFs shareholder
countries.
Credit
Policies
The Constitutive Agreement limits the total amount of disbursed
and outstanding loans, guarantees and equity investments to 4.0
times shareholders equity. Our actual ratio on
December 31, 2010 was 2.5 times shareholders equity.
We apply commercial banking standards for credit approvals and
maintain policies and procedures regarding risk assessment and
credit policy. Relationship managers perform an initial
screening of each potential client and transaction to ensure
that the proposed extension of credit falls within our policies.
Proposed project loans are evaluated in accordance with our
Operational Policies, which set out detailed eligibility and
evaluation guidelines. Loans to a private sector borrower are
approved taking into consideration both the individual loan and
the total exposure to the borrower.
The Loans and Investments Committee recommends approvals of
loans and investments. The members of this Committee are the
Vice Presidents, the General Legal Counsel and the Head of
Credit Administration. The committee is chaired by the Executive
Vice President. The Secretary of the Committee is an officer
from the Credit Administration Office. The Executive President,
upon the recommendation of the Loans and Investments Committee,
may approve loans of up to $75.0 million for sovereign
credits, up to $50.0 million for private credits, up to
$25.0 million for equity investments, up to
$30.0 million for investments in liquid assets for each
issuer (unless the issuer is: (i) at least investment
grade, in which case the investment may be up to
$150.0 million, (ii) a government or governmental
institution with an investment grade rating of at least AA+, in
which case the investment may be up to $400.0 million, or
(iii) a government or governmental institution with an
investment grade rating of AAA or certain other international
bodies, in which case the investment may be up to
$500.0 million), and up to $1.0 million for technical
cooperation credits. In excess of these amounts, loans of up to
$150.0 million for sovereign credits, up to
$80.0 million for private credits, up to $50.0 million
for equity investments, up to $50.0 million for investments
in liquid assets for each issuer (unless the issuer is:
(i) at least investment grade, in which case the investment
may be up to $200.0 million, (ii) a government or
governmental institution with an investment grade rating of at
least AA+, in which case the investment may be up to
$450.0 million, or (iii) a government or governmental
institution with an investment grade rating of AAA or certain
other international bodies, in which case the investment may be
up to $650.0 million), and up to $2.0 million for
technical cooperation credits must be approved by the Executive
Committee of our Board of Directors or the Board of Directors
itself. Loans in excess of the aforementioned Executive
Committees limits require the approval of our Board of
Directors.
Our policies also impose limitations on loan concentration by
country and by type of risk. Loans to entities in any one full
member shareholder country may not exceed either 30% of our loan
portfolio or 100% of our shareholders equity. Aggregate
loans to entities in any associated shareholder country
currently may not exceed eight times the total of such
countrys paid-in capital contribution to us plus any
assets entrusted by the country to us under a fiduciary
relationship. This limit does not apply to trade loan financing
with full member shareholder countries. Additionally, no more
than four times the countrys paid-in capital contribution
to us plus any assets entrusted to us under a fiduciary
relationship may be committed to operations essentially national
in character. The same limitation applies to our total loan
portfolio in relation to our shareholders equity. Loans to
a public sector or mixed-capital entity not considered a
sovereign risk are limited in the aggregate to 15% of our
shareholders equity, and loans to any private sector
entity are limited in the aggregate to 10% of our
shareholders equity.
Operations in which we extend credit to entities in Series
C shareholder countries must generally be related to
activities of such entities in, or related to, the full member
shareholder countries. The aggregate total of outstanding loans
to entities in such countries for purely local activities may
not exceed four times the amount of paid-in capital contributed
by that country.
Our policies permit us to provide up to 100% of the total
project costs with respect to short-term loans. For medium-and
long-term loans, we determine the appropriate level of financing
on a
case-by-case
basis;
27
however, limited-recourse financing in such loans may not exceed
50% of project costs. In practice, however, we typically limit
our loans to a smaller percentage of total project costs and
generally require a larger percentage of financial support by
the borrower than required by our credit policies.
Asset
Quality
We classify a loan as overdue whenever payment is not made on
its due date. We charge additional interest on the overdue
payment from the due date and immediately suspend disbursements
on all loans to the borrower and to any other borrowers of which
the overdue borrower is a guarantor. The entire principal amount
of a loan is placed in non-accrual status when collection or
recovery is doubtful or when any payment, including principal,
interest, fees or other charges in respect of the loan, is more
than 90 days overdue in the case of a private sector loan
or more than 180 days overdue in the case of a public
sector loan. Interest and other charges on non-accruing loans
are included in income only to the extent that payments have
actually been received by us.
At December 31, 2010, there were $0.0 loans overdue or in
non-accrual status. At December 31, 2009, there were
$0.0 million in overdue loans and $0.0 loans in non-accrual
status. For the years ended December 31, 2010 and 2009,
there were $0.0 and $0.0, respectively, overdue interest or
other charges in respect of non-accrual status loans excluded
from net income.
At December 31, 2010, there were $0.0 loan write-offs. We
have not suffered any individually significant losses on our
loan portfolio. Although our loans do not enjoy any legal
preference over those of other creditors, we do enjoy a de facto
preferred creditor status arising from our status as a
multilateral financial institution and from the interest of our
borrowers in maintaining their credit standing with us. Although
some of our shareholder countries have restructured their
sovereign debt obligations, none of them have ever defaulted on
their debt obligations to CAF.
Quality
of Loan Portfolio
The following table shows our overdue loan principal, loans in
non-accrual status, and the total allowance for loan losses and
their percentages of our total loan portfolio at the respective
dates indicated, as well as loans written-off during each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31,
|
|
|
2010
|
|
2009
|
|
2008
|
|
|
(in U.S.$ millions)
|
|
Total loan portfolio
|
|
|
13,783.0
|
|
|
|
11,686.7
|
|
|
|
10,184.1
|
|
Overdue loan principal
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.1
|
|
Loans in non-accrual status
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
Loans written-off during period
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
4.0
|
|
Allowance for loan losses
|
|
|
141.4
|
|
|
|
143.9
|
|
|
|
143.2
|
|
Overdue principal payment as a percentage of loan portfolio
(excluding non-accrual loans)
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
Non-accrual loans as a percentage of loan portfolio
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
Allowance for loan losses as a percentage of loan portfolio
|
|
|
1.0
|
%
|
|
|
1.2
|
%
|
|
|
1.4
|
%
|
28
FUNDED
DEBT
Funding
Strategy
We raise funds for operations primarily in the international
financial markets, although a relatively small part is raised
within our shareholder countries. Our strategy with respect to
funding, to the extent possible under prevailing market
conditions, is to match the maturities of our liabilities to the
maturities of our loan portfolio. In order to diversify our
funding sources and to offer potential borrowers a wide range of
credit facilities, we raise funds through bond issues in both
the shareholder countries and the international capital markets.
We also take deposits and obtain loans and credit lines from
central banks, commercial banks and, to the extent of imports
related to projects funded by us, export credit agencies.
Within the shareholder countries, we raise funds from central
banks and financial institutions and by means of regional bond
issues. Outside Latin America and the Caribbean, we obtain
funding from public sector development and credit agencies, from
development banks, from various North American, European and
Asian commercial banks, from capital markets and from the
U.S. and European commercial paper markets.
Sources
of Funded Debt
The breakdown of our outstanding funded debt, both within and
outside the shareholder countries, at each of the dates
indicated below was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
|
(in U.S.$ millions)
|
|
|
Within the shareholder countries:
|
|
|
|
|
|
|
|
|
|
|
|
|
Term deposits
|
|
|
2,739.5
|
|
|
|
2,650.7
|
|
|
|
2,773.1
|
|
Loans and lines of credit
|
|
|
10.6
|
|
|
|
13.9
|
|
|
|
4.3
|
|
Bonds
|
|
|
709.2
|
|
|
|
785.6
|
|
|
|
790.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,459.3
|
|
|
|
3,450.2
|
|
|
|
3,568.1
|
|
Outside the shareholder countries:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits, acceptances and advances, commercial paper and
repurchase agreements
|
|
|
1,524.3
|
|
|
|
1,265.4
|
|
|
|
802,4
|
|
Loans and lines of credit
|
|
|
980.2
|
|
|
|
777.0
|
|
|
|
679.7
|
|
Bonds
|
|
|
6,116.7
|
|
|
|
4,502.8
|
|
|
|
3,738.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,621.2
|
|
|
|
6,545.2
|
|
|
|
5,220.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.080.4
|
|
|
|
9,995.4
|
|
|
|
8,788.8
|
|
Variation effect between spot and original FX rate
|
|
|
30.4
|
|
|
|
183.0
|
|
|
|
275.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustments on hedging activities
|
|
|
363.9
|
|
|
|
225.3
|
|
|
|
341.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
12,474.8
|
|
|
|
10,403.8
|
|
|
|
9,406.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29
Maturity
of Funded Debt
The breakdown of our outstanding funded debt, by instrument and
maturity, at each of the dates indicated below was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
|
(in U.S.$ millions)
|
|
|
Term deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Up to 1 year
|
|
|
2,739.5
|
|
|
|
2,650.7
|
|
|
|
2,773.1
|
|
Acceptances, advances and commercial paper and repurchase
agreements:
|
|
|
|
|
|
|
|
|
|
|
|
|
Up to 1 year
|
|
|
1,524.3
|
|
|
|
1,265.4
|
|
|
|
802.4
|
|
Loans and lines of credit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Up to 1 year
|
|
|
143.6
|
|
|
|
128.9
|
|
|
|
147.9
|
|
Between 1 and 3 years
|
|
|
279.7
|
|
|
|
250.6
|
|
|
|
252.9
|
|
Between 3 and 5 years
|
|
|
341.1
|
|
|
|
147.4
|
|
|
|
135.8
|
|
More than 5 years
|
|
|
226.4
|
|
|
|
263.9
|
|
|
|
147.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
990.8
|
|
|
|
790.9
|
|
|
|
684.0
|
|
Bonds:
|
|
|
|
|
|
|
|
|
|
|
|
|
Up to 1 year
|
|
|
578.6
|
|
|
|
447.0
|
|
|
|
476.1
|
|
Between 1 and 3 years
|
|
|
1,409.0
|
|
|
|
1,506.9
|
|
|
|
1,209.5
|
|
Between 3 and 5 years
|
|
|
2,041.5
|
|
|
|
953.5
|
|
|
|
1,511.9
|
|
More than 5 years
|
|
|
2,796.9
|
|
|
|
2,380.9
|
|
|
|
1,331.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,825.9
|
|
|
|
5,288.4
|
|
|
|
4,529.2
|
|
Totals:
|
|
|
|
|
|
|
|
|
|
|
|
|
Up to 1 year
|
|
|
4,986.0
|
|
|
|
4,492.1
|
|
|
|
4,199.5
|
|
Between 1 and 3 years
|
|
|
1,688.7
|
|
|
|
1,757.6
|
|
|
|
1,462.4
|
|
Between 3 and 5 years
|
|
|
2,382.5
|
|
|
|
1,100.9
|
|
|
|
1,647.7
|
|
More than 5 years
|
|
|
3,023.2
|
|
|
|
2,644.9
|
|
|
|
1,479.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,080.4
|
|
|
|
9,995.4
|
|
|
|
8,788.8
|
|
Variation effect between spot and original FX rate
|
|
|
30,4
|
|
|
|
183.0
|
|
|
|
275.8
|
|
Fair value adjustments on hedging activities
|
|
|
363.9
|
|
|
|
225.3
|
|
|
|
341.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
12,474.8
|
|
|
|
10,403.8
|
|
|
|
9,406.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Our borrowings are primarily U.S. dollar-based: 79% of our
total borrowings, or 98.8% of borrowings after swaps, were
denominated in U.S. dollars at December 31, 2010. The
principal amount of
non-U.S. dollar
borrowings outstanding at December 31, 2010 included
800.0 million Euro, 39,400.0 million Yen,
450.0 million Swiss Francs, 1.6 million Canadian
Dollars, 483,980.0 million Colombian Pesos,
750.0 million Mexican Pesos, 392.7 million Peruvian
Nuevos Soles and 450.0 million Venezuelan Bolivares; all of
such
non-U.S. dollar
borrowings are swapped or otherwise hedged.
DEBT
RECORD
We have never defaulted on the payment of principal of, or
premium or interest on, any debt security we have issued, and we
have always met all of our debt obligations on a timely basis.
30
ASSET AND
LIABILITY MANAGEMENT
We reduce our sensitivity to interest rate risk by extending our
loans on a floating rather than a fixed interest rate basis. As
a result, at December 31, 2010, 99.7% of our outstanding
loans were based on LIBOR and subject to interest rate
adjustments at least every six months. The liabilities that fund
these loans are also contracted at, or swapped into, floating
interest rates. When we make loans at fixed interest rates, we
also obtain the corresponding funding on a fixed interest rate
basis.
We require that counterparties with which we enter into swap
agreements be rated A+/A1 or better by two
U.S. nationally recognized statistical rating organizations
or have signed a credit support agreement (resulting in the
corresponding exchange of collateral). At December 31,
2010, we were party to swap agreements with an aggregate
notional amount of $7.1 billion.
We seek, to the extent possible under prevailing market
conditions, to match the maturities of our liabilities to the
maturities of our loan portfolio. At December 31, 2010, the
weighted average life of our financial assets was 4.7 years
and the weighted average life of our financial liabilities was
3.6 years. Based on our asset and liability structure at
December 31, 2010, we have a positive cumulative gap over a
10 year horizon. This positive gap denotes asset
sensitivity, which means that decreases in the general level of
interest rates should have a negative effect on our net
financial income and, conversely, increases in the general level
of interest rates should have a positive effect on our net
financial income.
Our management expects the weighted average life of our
financial assets to increase gradually, as we make more
long-term loans for infrastructure development and similar
purposes. At the same time, our management expects that the
weighted average life of our liabilities will also increase as a
result of our strategy of increasing our presence in the
international long-term bond market as market conditions permit.
At December 31, 2010, approximately 99.8% of our assets and
77.1% of our liabilities were denominated in U.S. dollars,
with the remainder of our liabilities being denominated
principally in Euro, Yen and Swiss Francs, which liabilities
were swapped. After swaps, 99.6% of our liabilities were
denominated in U.S. dollars. Generally, funding that is
contracted in currencies other than the U.S. dollar is
swapped into U.S. dollars. In some cases, we extend our
loans in the same
non-U.S. dollar
currencies as debt is incurred in order to minimize exchange
risks. Our shareholders equity is denominated entirely in
U.S. dollars.
Our treasury asset and liability management involves managing
liquidity, funding, interest rate and exchange rate risk arising
from non-trading positions through the use of on-balance sheet
instruments. Our external asset managers use derivatives to
hedge the interest and exchange rate risk exposures of our
non-U.S. dollar
denominated investments. Our policy is that our total exposure
on trade derivatives should not exceed 3% of liquid investments.
See Derivative Instruments and Hedging Activities in
the Notes to the Financial Statements for the years ended
December 31, 2010, 2009 and 2008 (Note 17).
ADMINISTRATION
We are governed and administered by the bodies and officials
detailed below:
Shareholders
General Meeting
The shareholders general meeting is the ultimate
decision-making body within CAF. Shareholders general
meetings can be ordinary or extraordinary and are governed by
the requirement for the presence of a quorum and compliance with
other conditions set out in the Constitutive Agreement.
Shareholders ordinary general meetings are held once a
year, within 90 days of the close of the financial year,
and are convened by the Executive President. The
shareholders ordinary general meeting:
|
|
|
|
(1)
|
considers the Board of Directors annual report and our
financial statements, receives the independent auditors
report and allocates our net income;
|
|
|
(2)
|
elects the Board of Directors according to the Constitutive
Agreement;
|
31
|
|
|
|
(3)
|
appoints external auditors;
|
|
|
(4)
|
determines compensation for the Board of Directors and the
external auditors; and
|
|
|
(5)
|
may consider any other matter expressly submitted to it which is
not within the purview of any other body of CAF.
|
Shareholders extraordinary general meetings may be
convened after a call has been made at the initiative of the
Board of Directors, or the Executive President, or at least 40%
of Series A shareholders or any shareholders
representing at least 25% of paid-in capital. The
shareholders extraordinary general meeting may:
|
|
|
|
(1)
|
increase, reduce or replenish our capital in accordance with the
Constitutive Agreement;
|
|
|
(2)
|
dissolve CAF;
|
|
|
(3)
|
change the headquarters of CAF when the Board of Directors so
proposes; and
|
|
|
(4)
|
consider any other matter that has been expressly submitted to
it that is not within the purview of any other body of CAF.
|
Resolutions before shareholders ordinary general meetings
are passed by the votes of at least 60% of Series A
shareholders, together with a majority of the votes of the other
shares represented at the meeting. Resolutions passed at
shareholders extraordinary general meetings (including a
decision to dissolve CAF) require the votes of 80% of Series
A shareholders, together with a majority of the
votes of the other shares represented at the meeting, except for
resolutions concerning modifications to the structure of the
Board of Directors in which case an affirmative vote of all
Series A shareholders is required, together with a
majority of the votes of the other shares represented at the
meeting. In the event of adjournment for lack of a quorum, which
consists of at least 80% of Series A shareholders
and a simple majority of the other shareholders, at either an
ordinary or extraordinary general meeting, two Series
A shareholders, plus a majority of the other shares
represented at the meeting, may deliberate and approve decisions
at a reconvened meeting.
Board of
Directors
Our Board of Directors is composed of 17 directors, each of
whom is elected for a term of three years and may be re-elected.
Each of the Series A shareholders is represented by
one director. Five directors represent the governments or
governmental institutions holding Series B shares
and one director represents the private financial institutions
holding Series B shares. Holders of Series
C shares are entitled to elect two directors. In the
event of a vacancy in a director position, the corresponding
alternate director serves as director until such vacancy has
been filled. Responsibilities of our Board of Directors include:
|
|
|
|
(1)
|
establishing and directing our credit and economic policies;
|
|
|
(2)
|
approving our budget;
|
|
|
(3)
|
approving our borrowing limits;
|
|
|
(4)
|
approving credits granted by us in excess of a specified limit;
|
|
|
(5)
|
establishing or modifying internal regulations; and
|
|
|
(6)
|
appointing the Executive President.
|
32
All of our directors are non-executive. As of the date of this
prospectus, the composition of the Board of Directors was as
follows:
Directors (and their Alternates) representing Series
A shareholders:
|
|
|
|
|
Argentina
|
|
Amado Boudou
(Julio Miguel De Vido)
|
|
Minister of Economics and Public Finance (Minister of Federal
Planning, Public Investments and Services)
|
Bolivia
|
|
Elba Viviana Caro Hinojosa (Harley Rodríguez Téllez)
|
|
Minister of Development Planning
(Vice Minister of Public Investment and External Financing)
|
Brazil
|
|
Miriam Belchior
(Carlos Augusto Vidotto)
|
|
Minister of Planning, Budget and Process (Secretary of
International Affairs from the Ministry of Planning, Budget and
Process)
|
Colombia
|
|
Juan Carlos Echeverry
(Sergio Diaz-Granados Guida)
|
|
Minister of Treasury and Public Credit (Minister of Commerce,
Industry and Tourism)
|
Ecuador
|
|
Camilo Samán Salem
|
|
President of the Board of Directors of Corporación
Financiera Nacional
|
|
|
(Katiuska King Mantilla)
|
|
(Coordinating Minister of Economic Policies)
|
Panama
|
|
Alberto Vallarino
(Dulcidio De La Guardia)
|
|
Minister of Economics and Finance
(Vice Minister of Finance)
|
Peru
|
|
Ismael Benavides Ferreyros
(Luis Miguel Castilla)
|
|
Minister of Economy and Finance
(Vice Minister of Treasury)
|
Uruguay
|
|
Fernando Lorenzo
(Mario Bergara)
|
|
Minister of Economy and Finance
(President of Banco Central del Uruguay)
|
Venezuela
|
|
Jorge Giordani
|
|
Minister of the Popular Power for Economy and Finance
|
|
|
(Eyilde Margarita Gracia)
|
|
(Vice Minister of Planning and Finance)
|
Directors (and their Alternates) representing Series
B shareholders:
|
|
|
|
|
Bolivia
|
|
Luis Alberto Arce
|
|
Minister of Economy and Finance
|
|
|
(Roger Edwin Rojas Ulo)
|
|
(Vice Minister of Treasury and Public Credit)
|
Colombia
|
|
José Dario Uribe
(Hernando José Gómez)
|
|
General Manager of Banco de la República (Director of the
National Planning Department)
|
Ecuador
|
|
Patricio Rivera
|
|
Minister of Finance
|
|
|
(Diego Borja Cornejo)
|
|
(President of the Board of Directors of Banco Central del
Ecuador)
|
Peru
|
|
Alfonso Zárate Rivas
|
|
President of the Board of Directors of Corporación
Financiera de Desarrollo (COFIDE)
|
|
|
(Fernando Toledo Arburúa)
|
|
(Vice Minister of Economy)
|
Venezuela
|
|
Edmée Betancourt de García
|
|
President of Banco de Desarrollo Económico y Social of
Venezuela
|
|
|
(Gustavo Hernández)
|
|
(Vice Minister of Treasury)
|
Private Financial Institutions
|
|
Carlos González-Taboada
|
|
Vice President of the Board of Directors and General Manager of
Scotiabank Perú
|
|
|
(Miguel Ignacio Purroy)
|
|
(President of Banco del Caribe Banco Universal (BANCARIBE)
Venezuela)
|
The directors representing the Series C shareholders
are Elena Salgado, Second Vice President of the Government and
Minister of the Economy and Treasury for Spain and one more
director to be designated.
33
Their alternates are Winston Dookeran, Minister of Finance for
Trinidad and Tobago, and Matias Acevedo, Corporate Director of
CORFO for Chile, respectively.
The business address of each of the directors and each of the
alternate directors listed above is Torre CAF, Piso 9, Avenida
Luis Roche, Altamira, Caracas, Venezuela.
Our Board of Directors annually elects a Chairman to preside
over the meetings of the Board of Directors and the
shareholders general meeting. Juan Carlos Echeverry is the
current Chairman until March 31, 2012.
Executive
Committee
The Board of Directors delegates certain functions, including
credit approvals within specified limits, to the Executive
Committee. This Committee is composed of one director from each
full member shareholder country, plus one director representing
all of the Series C shareholders, and CAFs
Executive President, who presides over the Committee unless the
Chairman of the Board of Directors is part of the Committee, in
which case he or she will preside.
Executive
President
The Executive President is our legal representative and chief
executive officer. He is empowered to decide all matters not
expressly reserved to the shareholders general meeting,
the Board of Directors or the Executive Committee. The Executive
President is elected by the Board of Directors for a period of
five years and may be re-elected.
Our Executive President, L. Enrique García, was re-elected
in June 2006 for a fourth five-year term that will expire in
December 2011. Before becoming our Executive President in
November 1991, Mr. García was Minister of Planning and
Coordination and Head of the Economic and Social Cabinet in his
native Bolivia. Between 1989 and 1991, he represented Bolivia as
Governor to the World Bank, the
Inter-American
Development Bank (IADB) and as a member of the
Development Committee of the World Bank. He was also Chairman of
the Board of Directors of CAF from 1990 to 1991. Previously,
Mr. García held senior positions during a
17-year
tenure at the IADB, including Treasurer.
Officers
|
|
|
L. Enrique García
|
|
Executive President and Chief Executive Officer
|
Luis Enrique Berrizbeitia
|
|
Executive Vice President
|
Lilliana Canale
|
|
Corporate Vice President of Country Programs
|
Antonio Juan Sosa
|
|
Corporate Vice President of Infrastructure
|
Peter Vonk
|
|
Corporate Vice President of Productive and Financial Sector
|
Leonardo Villar
|
|
Corporate Vice President of Development Strategies and Public
Policy
|
Hugo Sarmiento Kohlenberger
|
|
Corporate Vice President of Finance and Chief Financial Officer
|
José Carrera
|
|
Corporate Vice President of Social and Environmental Development
|
Ricardo Sigwald
|
|
General Counsel
|
Marcelo Zalles
|
|
Controller
|
Employees
At December 31, 2010, we employed 366 professionals and 105
support staff. The senior positions of Executive Vice President,
Vice President of Finance, Vice President of Country Programs,
Vice President of Infrastructure, Vice President of Corporate
and Financial Sector, Vice President of Development Strategies
and
34
Public Policies and Vice President of Social and Environmental
Development are appointed by the Executive President, subject to
ratification by the Board of Directors.
Our management believes that the salaries and other benefits of
our professional staff are competitive and that the local
support staff are paid at levels above the prevailing local
rates. Although we are not subject to local labor laws, we
provide our employees with benefits and safeguards at least
equivalent to those required under the law of the country where
they normally work and reside. We offer technical and
professional training opportunities through courses and seminars
for our employees. Management considers its relationship with
CAFs employees to be good. There is no employee union and
there have been no strikes in the history of CAF.
THE FULL
MEMBER SHAREHOLDER COUNTRIES
Certain of the following information has been extracted from
publicly available sources. We believe that the information is
accurate but we have not independently verified it.
The region occupied by the full member shareholder countries is
bordered by the Atlantic Ocean on the east, the Caribbean Sea on
the north and the Pacific Ocean on the west, and covers
approximately 13.245 million square kilometers in South
America (approximately 74% of the South American continent).
Selected
Demographic and Economic Data*
The following table presents selected demographic and economic
data for the full member shareholder countries for the years
indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bolivia
|
|
Brazil
|
|
Colombia
|
|
Ecuador
|
|
Panama
|
|
Peru
|
|
Uruguay
|
|
Venezuela
|
|
Population (in millions)(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
10.4
|
|
n.a.
|
|
45.5
|
|
14.2
|
|
n.a.
|
|
29.4
|
|
n.a.
|
|
n.a.
|
2009
|
|
10.3
|
|
191.5
|
|
45.0
|
|
14.0
|
|
3.5
|
|
29.1
|
|
3.3
|
|
28.4
|
2008
|
|
10.0
|
|
189.6
|
|
44.5
|
|
13.8
|
|
3.4
|
|
28.7
|
|
3.3
|
|
27.9
|
2007
|
|
9.8
|
|
187.4
|
|
43.9
|
|
13.6
|
|
3.3
|
|
28.2
|
|
3.3
|
|
27.5
|
2006
|
|
9.6
|
|
185.6
|
|
43.4
|
|
13.4
|
|
3.3
|
|
27.5
|
|
3.3
|
|
27.0
|
2005
|
|
9.4
|
|
183.4
|
|
42.9
|
|
13.2
|
|
3.2
|
|
27.2
|
|
3.3
|
|
26.6
|
2004
|
|
9.2
|
|
181.1
|
|
42.4
|
|
13.0
|
|
3.2
|
|
26.9
|
|
3.3
|
|
26.1
|
Life expectancy at birth (years)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
66.0
|
|
72.6
|
|
73.2
|
|
75.3
|
|
75.8
|
|
73.5
|
|
76.1
|
|
73.7
|
2008
|
|
65.7
|
|
72.4
|
|
73.0
|
|
75.1
|
|
75.7
|
|
73.3
|
|
76.0
|
|
73.5
|
2007
|
|
65.4
|
|
72.2
|
|
72.7
|
|
75.0
|
|
75.5
|
|
73.0
|
|
75.9
|
|
73.6
|
2006
|
|
65.0
|
|
71.9
|
|
72.5
|
|
74.8
|
|
75.3
|
|
72.8
|
|
75.7
|
|
73.4
|
2005
|
|
64.7
|
|
71.6
|
|
72.3
|
|
74.7
|
|
75.2
|
|
72.5
|
|
75.6
|
|
73.2
|
2004
|
|
64.4
|
|
71.4
|
|
72.0
|
|
74.5
|
|
75.0
|
|
72.2
|
|
75.2
|
|
73.0
|
2003
|
|
64.0
|
|
71.1
|
|
71.8
|
|
74.3
|
|
74.8
|
|
71.8
|
|
74.9
|
|
72.8
|
2002
|
|
63.7
|
|
70.8
|
|
71.5
|
|
74.0
|
|
74.6
|
|
71.4
|
|
74.8
|
|
73.6
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bolivia
|
|
Brazil
|
|
Colombia
|
|
Ecuador
|
|
Panama
|
|
Peru
|
|
Uruguay
|
|
Venezuela
|
|
GDP (U.S.$ in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
18,732
|
|
2,089,828
|
|
281,683
|
|
56,998
|
|
26,777
|
|
153,919
|
|
39,984
|
|
233,218
|
2009
|
|
17,217
|
|
1,598,397
|
|
233,431
|
|
52,021
|
|
24,080
|
|
127,370
|
|
30,338
|
|
325,678
|
2008
|
|
17,071
|
|
1,650,713
|
|
243,424
|
|
54,208
|
|
23,002
|
|
127,115
|
|
31,260
|
|
310,696
|
2007
|
|
13,430
|
|
1,366,544
|
|
207,411
|
|
45,504
|
|
19,740
|
|
107,328
|
|
23,915
|
|
226,221
|
2006
|
|
11,532
|
|
1,088,767
|
|
162,808
|
|
41,763
|
|
17,134
|
|
92,439
|
|
19,831
|
|
183,222
|
2005
|
|
9,533
|
|
882,439
|
|
146,570
|
|
37,187
|
|
15,465
|
|
79,427
|
|
17,528
|
|
144,128
|
2004
|
|
8,638
|
|
663,783
|
|
117,188
|
|
32,642
|
|
14,179
|
|
69,698
|
|
13,708
|
|
112,800
|
2003
|
|
8,082
|
|
553,603
|
|
94,646
|
|
28,636
|
|
12,933
|
|
61,494
|
|
11,191
|
|
83,427
|
GDP per capita (U.S.$)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
1,797
|
|
10,814
|
|
6,190
|
|
4,013
|
|
7,641
|
|
5,242
|
|
11,912
|
|
8,088
|
2009
|
|
1,677
|
|
8,348
|
|
5,190
|
|
3,716
|
|
6,979
|
|
4,390
|
|
9,070
|
|
11,474
|
2008
|
|
1,702
|
|
8,706
|
|
5,476
|
|
3,928
|
|
6,775
|
|
4,434
|
|
9,376
|
|
11,122
|
2007
|
|
1,367
|
|
7,283
|
|
4,722
|
|
3,345
|
|
5,911
|
|
3,803
|
|
7,195
|
|
8,231
|
2006
|
|
1,198
|
|
5,867
|
|
3,751
|
|
3,110
|
|
5,217
|
|
3,356
|
|
5,983
|
|
6,778
|
2005
|
|
1,011
|
|
4,812
|
|
3,417
|
|
2,795
|
|
4,791
|
|
2,917
|
|
5,302
|
|
5,423
|
2004
|
|
936
|
|
3,665
|
|
2,163
|
|
2,325
|
|
4,470
|
|
2,591
|
|
4,152
|
|
4,317
|
2003
|
|
895
|
|
3,097
|
|
1,782
|
|
2,230
|
|
4,150
|
|
2,314
|
|
3,387
|
|
3,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross reserves (excluding gold) (U.S.$ in millions)(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
9,730
|
|
|
|
288,575
|
|
|
|
28,452
|
|
|
|
2,951
|
|
|
|
4,052
|
|
|
|
44,105
|
|
|
|
7,744
|
|
|
|
30,332
|
|
2009
|
|
|
8,581
|
|
|
|
238,520
|
|
|
|
25,356
|
|
|
|
3,792
|
|
|
|
4,400
|
|
|
|
33,136
|
|
|
|
7,987
|
|
|
|
35,830
|
|
2008
|
|
|
7,722
|
|
|
|
193,783
|
|
|
|
23,671
|
|
|
|
4,472
|
|
|
|
3,785
|
|
|
|
31,196
|
|
|
|
6,360
|
|
|
|
42,226
|
|
2007
|
|
|
5,319
|
|
|
|
180,334
|
|
|
|
20,949
|
|
|
|
3,520
|
|
|
|
4,364
|
|
|
|
27,689
|
|
|
|
4,121
|
|
|
|
33,500
|
|
2006
|
|
|
3,178
|
|
|
|
85,839
|
|
|
|
15,436
|
|
|
|
2,023
|
|
|
|
4,985
|
|
|
|
17,275
|
|
|
|
3,091
|
|
|
|
36,606
|
|
2005
|
|
|
1,714
|
|
|
|
53,799
|
|
|
|
14,947
|
|
|
|
2,147
|
|
|
|
2,432
|
|
|
|
14,097
|
|
|
|
3,078
|
|
|
|
30,368
|
|
2004
|
|
|
1,123
|
|
|
|
52,935
|
|
|
|
13,536
|
|
|
|
1,437
|
|
|
|
1,910
|
|
|
|
12,631
|
|
|
|
3,145
|
|
|
|
24,208
|
|
2003
|
|
|
976
|
|
|
|
49,296
|
|
|
|
10,916
|
|
|
|
1,160
|
|
|
|
2,307
|
|
|
|
10,194
|
|
|
|
2,281
|
|
|
|
21,366
|
|
Consumer price index growth(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
7.18
|
%
|
|
|
5.90
|
%
|
|
|
3.17
|
%
|
|
|
3.56
|
%
|
|
|
4.93
|
%
|
|
|
2.08
|
%
|
|
|
6.93
|
%
|
|
|
27.40
|
%
|
2009
|
|
|
0.26
|
%
|
|
|
4.23
|
%
|
|
|
2.00
|
%
|
|
|
4.44
|
%
|
|
|
1.89
|
%
|
|
|
0.25
|
%
|
|
|
5.90
|
%
|
|
|
27.04
|
%
|
2008
|
|
|
11.90
|
%
|
|
|
5.90
|
%
|
|
|
7.67
|
%
|
|
|
8.39
|
%
|
|
|
6.77
|
%
|
|
|
6.65
|
%
|
|
|
9.19
|
%
|
|
|
31.90
|
%
|
2007
|
|
|
11.70
|
%
|
|
|
4.50
|
%
|
|
|
5.70
|
%
|
|
|
3.32
|
%
|
|
|
6.36
|
%
|
|
|
3.93
|
%
|
|
|
8.50
|
%
|
|
|
22.50
|
%
|
2006
|
|
|
4.95
|
%
|
|
|
3.14
|
%
|
|
|
4.50
|
%
|
|
|
2.87
|
%
|
|
|
2.20
|
%
|
|
|
1.14
|
%
|
|
|
6.38
|
%
|
|
|
17.00
|
%
|
2005
|
|
|
4.90
|
%
|
|
|
5.70
|
%
|
|
|
4.90
|
%
|
|
|
3.10
|
%
|
|
|
3.36
|
%
|
|
|
1.49
|
%
|
|
|
4.90
|
%
|
|
|
14.40
|
%
|
2004
|
|
|
4.60
|
%
|
|
|
7.60
|
%
|
|
|
5.50
|
%
|
|
|
1.90
|
%
|
|
|
1.60
|
%
|
|
|
3.48
|
%
|
|
|
7.60
|
%
|
|
|
19.20
|
%
|
2003
|
|
|
3.90
|
%
|
|
|
9.30
|
%
|
|
|
6.50
|
%
|
|
|
6.24
|
%
|
|
|
−0.30
|
%
|
|
|
2.48
|
%
|
|
|
10.20
|
%
|
|
|
27.10
|
%
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exports of Goods (f.o.b.) (U.S.$ in millions)(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
6,098
|
|
|
|
201,915
|
|
|
|
28,779
|
|
|
|
17,826
|
|
|
|
17,423
|
|
|
|
35,565
|
|
|
|
8,114
|
|
|
|
65,786
|
|
2009
|
|
|
4,848
|
|
|
|
152,995
|
|
|
|
32,563
|
|
|
|
14,286
|
|
|
|
16,652
|
|
|
|
26,962
|
|
|
|
6,389
|
|
|
|
57,595
|
|
2008
|
|
|
6,448
|
|
|
|
197,942
|
|
|
|
37,095
|
|
|
|
18,961
|
|
|
|
16,111
|
|
|
|
31,018
|
|
|
|
7,095
|
|
|
|
95,138
|
|
2007
|
|
|
4,458
|
|
|
|
160,651
|
|
|
|
29,381
|
|
|
|
14,847
|
|
|
|
14,296
|
|
|
|
27,891
|
|
|
|
5,100
|
|
|
|
69,010
|
|
2006
|
|
|
3,875
|
|
|
|
137,807
|
|
|
|
23,930
|
|
|
|
11,983
|
|
|
|
12,476
|
|
|
|
23,831
|
|
|
|
4,400
|
|
|
|
65,578
|
|
2005
|
|
|
2,791
|
|
|
|
118,308
|
|
|
|
20,818
|
|
|
|
10,109
|
|
|
|
10,808
|
|
|
|
17,336
|
|
|
|
3,774
|
|
|
|
55,716
|
|
2004
|
|
|
2,146
|
|
|
|
96,475
|
|
|
|
16,442
|
|
|
|
7,528
|
|
|
|
8,867
|
|
|
|
12,809
|
|
|
|
3,145
|
|
|
|
39,668
|
|
2003
|
|
|
1,598
|
|
|
|
73,084
|
|
|
|
12,934
|
|
|
|
6,197
|
|
|
|
7,582
|
|
|
|
9,091
|
|
|
|
2,281
|
|
|
|
27,230
|
|
Imports of Goods (f.o.b.) (U.S.$ in millions)(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
5,102
|
|
|
|
181,648
|
|
|
|
27,010
|
|
|
|
18,855
|
|
|
|
18,706
|
|
|
|
28,815
|
|
|
|
8,159
|
|
|
|
38,613
|
|
2009
|
|
|
4,377
|
|
|
|
127,722
|
|
|
|
30,510
|
|
|
|
14,213
|
|
|
|
15,446
|
|
|
|
21,011
|
|
|
|
6,660
|
|
|
|
38,442
|
|
2008
|
|
|
4,980
|
|
|
|
173,107
|
|
|
|
36,320
|
|
|
|
17,590
|
|
|
|
17,502
|
|
|
|
28,439
|
|
|
|
8,810
|
|
|
|
49,482
|
|
2007
|
|
|
3,455
|
|
|
|
120,612
|
|
|
|
30,088
|
|
|
|
13,024
|
|
|
|
14,647
|
|
|
|
19,595
|
|
|
|
5,645
|
|
|
|
46,031
|
|
2006
|
|
|
2,814
|
|
|
|
91,350
|
|
|
|
23,975
|
|
|
|
11,379
|
|
|
|
11,918
|
|
|
|
14,844
|
|
|
|
4,898
|
|
|
|
33,583
|
|
2005
|
|
|
2,334
|
|
|
|
73,606
|
|
|
|
19,431
|
|
|
|
9,645
|
|
|
|
10,688
|
|
|
|
12,082
|
|
|
|
3,753
|
|
|
|
24,008
|
|
2004
|
|
|
1,844
|
|
|
|
62,835
|
|
|
|
15,324
|
|
|
|
8,266
|
|
|
|
9,074
|
|
|
|
9,805
|
|
|
|
2,992
|
|
|
|
17,021
|
|
2003
|
|
|
1,616
|
|
|
|
48,290
|
|
|
|
12,792
|
|
|
|
6,702
|
|
|
|
7,586
|
|
|
|
8,205
|
|
|
|
2,098
|
|
|
|
10,687
|
|
|
|
|
* |
|
Sources: Official government sources (including but not limited
to the ministries of finance of the full member shareholder
countries). |
|
(1) |
|
For 2010, there are no population figures for Brazil, Panama,
Uruguay and Venezuela available from official sources. |
|
(2) |
|
This information is extracted from the World Banks World
Development Indicators (WDI). |
|
(3) |
|
At December 31. |
|
(4) |
|
End of period. |
|
(5) |
|
Free on Board. |
37
DESCRIPTION
OF THE DEBT SECURITIES
The following description sets forth certain general terms and
provisions of the debt securities to which any prospectus
supplement may relate. The particular terms of the debt
securities being offered and the extent to which such general
provisions may apply will be described in a prospectus
supplement relating to such debt securities.
The debt securities will be issued pursuant to a fiscal agency
agreement, dated as of March 17, 1998, between CAF and The
Bank of New York Mellon (as successor in interest to JPMorgan
Chase Bank), as fiscal agent. The following statements briefly
summarize some of the terms of the debt securities and the
fiscal agency agreement (a copy of which has been filed as an
exhibit to the registration statement). These statements do not
purport to be complete and are qualified in their entirety by
reference to all provisions of the fiscal agency agreement and
such debt securities.
General
The debt securities will constitute our direct, unconditional,
unsecured and general obligations. The debt securities will rank
equally with all of our other unsecured Indebtedness.
Indebtedness means all of our indebtedness in
respect of monies borrowed by us and guarantees given by us for
monies borrowed by others.
The accompanying prospectus supplement will describe the
following terms of the debt securities, as applicable:
|
|
|
|
(1)
|
the title;
|
|
|
(2)
|
the price or prices at which we will issue the debt securities;
|
|
|
(3)
|
any limit on the aggregate principal amount of the debt
securities or the series of which they are a part;
|
|
|
(4)
|
the currency or currency units for which the debt securities may
be purchased and in which payments of principal and interest
will be made;
|
|
|
(5)
|
the date or dates on which principal and interest will be
payable;
|
|
|
(6)
|
the rate or rates at which any of the debt securities will bear
interest, the date or dates from which any interest will accrue,
and the record dates and interest payment dates;
|
|
|
(7)
|
the place or places where principal and interest payments will
be made;
|
|
|
(8)
|
the time and price limitations on redemption of the debt
securities;
|
|
|
(9)
|
our obligation, if any, to redeem or purchase the debt
securities at the option of the holder;
|
|
|
(10)
|
the denominations in which any of the debt securities will be
issuable, if other than denominations of $1,000;
|
|
|
(11)
|
if the amount of principal or interest on any of the debt
securities is determinable according to an index or a formula,
the manner in which such amounts will be determined;
|
|
|
(12)
|
whether and under what circumstances we will issue the debt
securities as global debt securities; and
|
|
|
(13)
|
any other specific terms of the debt securities.
|
Certain debt securities will be treated for United States
federal income tax purposes as original issue discount notes
(Discount Notes) if the excess of the debt
securitys stated redemption price at maturity
over its issue price is more than a de minimis
amount (as defined for United States federal income tax
purposes). If applicable, the prospectus supplement will
describe the United States federal income tax consequences of
the ownership of Discount Notes and any special rules regarding
debt securities.
38
Denominations,
Registration and Transfer
The debt securities of each series will be issuable only in
fully registered form, without coupons, and, unless otherwise
specified in the prospectus supplement, only in denominations of
$1,000 and integral multiples thereof.
At the option of the holder, subject to the terms of the fiscal
agency agreement and the limitations applicable to global debt
securities, debt securities of each series will be exchangeable
for other debt securities of the same series of any authorized
denomination and of a like tenor and aggregate principal amount.
Debt securities may be presented for exchange and for
registration of transfer in the manner, at the places and
subject to the restrictions set forth in the debt securities and
as summarized in the prospectus supplement. Such services will
be provided without charge, other than any tax or other
governmental charge payable in connection therewith, but subject
to the limitations provided in the terms of the debt securities.
If any definitive notes are issued and at that time the notes
are listed on the Luxembourg Stock Exchange, we will appoint a
transfer agent in Luxembourg, which we anticipate being the same
entity that serves as our Luxembourg paying agent. In such
circumstances, transfers or exchanges of any definitive notes
may be made at the office of our Luxembourg transfer agent (in
addition to the corporate trust office of the fiscal agent).
Global
Debt Securities
Some or all of the debt securities of any series may be
represented, in whole or in part, by one or more global debt
securities that will have an aggregate principal amount equal to
that of the debt securities they represent. If applicable, each
global debt security will be:
|
|
|
|
(1)
|
registered in the name of a depositary or its nominee identified
in the prospectus supplement;
|
|
|
(2)
|
deposited with the depositary or nominee or the
depositarys custodian; and
|
|
|
(3)
|
printed with a legend regarding the restrictions on exchanges
and registration of transfer of the security, and any other
matters required by the fiscal agency agreement and the terms of
the debt securities and summarized in the prospectus supplement.
|
Payment
and Paying Agent
Unless otherwise indicated in the prospectus supplement, we will
make payments of principal and interest on debt securities:
|
|
|
|
(1)
|
through the fiscal agent;
|
|
|
(2)
|
to the person in whose name the debt securities are registered
at the close of business on the regular record date for the
payments; and
|
|
|
(3)
|
at the office of the paying agent or agents designated by us;
unless
|
|
|
|
|
|
at our option, payment is mailed to the registered
holder, or
|
|
|
|
at the request of a registered holder of more than $1,000,000
principal amount of the securities, payment is made by wire
transfer.
|
Unless otherwise indicated in the prospectus supplement, our
sole paying agent for payments on the debt securities will be
the corporate trust office of the fiscal agent in The City of
New York.
Any monies we pay to our fiscal agent or any paying agent for
the payment of the principal of or interest on any debt
securities that remains unclaimed at the end of two years after
such principal or interest has become due and payable will be
repaid to us by such agent. Upon such repayment, all liability
of our fiscal agent or any paying agent with respect to such
monies shall thereupon cease, without, however, limiting in any
way our unconditional obligation to pay principal of or any
interest on the debt securities when due.
Negative
Pledge
As long as any of the debt securities are outstanding and
unpaid, but only up to the time amounts sufficient for payment
of all principal and interest have been placed at the disposal
of the fiscal agent, we will not cause or permit to be created
on any of our property or assets any mortgage, pledge or other
lien or charge
39
as security for any bonds, notes or other evidences of
indebtedness heretofore or hereafter issued, assumed or
guaranteed by us for money borrowed (other than purchase money
mortgages, pledges or liens on property purchased by us as
security for all or part of the purchase price thereof), unless
the debt securities are secured by such mortgage, pledge or
other lien or charge equally and ratably with such other bonds,
notes or evidences of indebtedness.
Default;
Acceleration of Maturity
Each of the following will constitute an event of
default with respect to the debt securities of any series:
|
|
|
|
(1)
|
a failure to pay any principal of or interest on any debt
securities of that series when due and the continuance of the
failure for 30 days;
|
|
|
(2)
|
a failure to perform or observe any material obligation under or
in respect of any debt securities of that series or the fiscal
agency agreement and the continuance of the failure for a period
of 90 days after written notice of the failure has been
delivered to CAF and to the fiscal agent by the holder of any
debt security of that series;
|
|
|
(3)
|
a failure to pay any amount in excess of $20,000,000 (or its
equivalent in any other currency or currencies) of principal or
interest or premium in respect of any indebtedness incurred,
assumed or guaranteed by CAF as and when such amount becomes due
and payable and the continuance of the failure until the
expiration of any applicable grace period or 30 days,
whichever is longer; or
|
|
|
(4)
|
the acceleration of any indebtedness incurred or assumed by CAF
with an aggregate principal amount in excess of $20,000,000 (or
its equivalent in any other currency or currencies) by any
holder or holders thereof.
|
If an event of default occurs with respect to the debt
securities of any series at the time outstanding, each holder of
any debt security of that series may, by written notice to CAF
and the fiscal agent, declare the principal of and any accrued
interest on all the debt securities of that series held by it to
be, and the principal and accrued interest shall thereupon
become, immediately due and payable, unless prior to receipt of
the notice by CAF all events of default in respect of such
series of debt securities are cured. If all the events of
default are cured following the declaration, the declaration may
be rescinded by any such holder with respect to the previously
accelerated series of debt securities upon delivery of written
notice of the rescission to CAF and the fiscal agent.
Additional
Payments by CAF
All amounts payable (whether in respect of principal, interest
or otherwise) in respect of the debt securities will be made
free and clear of and without withholding or deduction for or on
account of any present or future taxes, duties, assessments or
governmental charges of whatever nature imposed or levied by or
on behalf of any of the full member shareholder countries or any
political subdivision thereof or any authority or agency therein
or thereof having power to tax, unless the withholding or
deduction of such taxes, duties, assessments or governmental
charges is required by law. In that event, we will pay such
additional amounts as may be necessary in order that the net
amounts receivable by the holder of debt securities of any
series after the withholding or deduction will equal the
respective amounts that would have been receivable by the holder
in the absence of the withholding or deduction, except
that no additional amounts will be payable in relation to
any payment in respect of any debt security:
|
|
|
|
(1)
|
to, or to a third party on behalf of, a holder of a debt
security of any series who is liable for such taxes, duties,
assessments or governmental charges in respect of such debt
security by reason of his having some connection with any of the
full member shareholder countries other than the mere holding of
the debt security; or
|
|
|
(2)
|
presented for payment more than 30 days after the
Relevant Date (as defined in the next paragraph),
except to the extent that the relevant holder would have been
entitled to the additional amounts on presenting the same for
payment on the expiry of the period of 30 days.
|
40
As used in this prospectus, the Relevant Date means,
in respect of any payment, the date on which such payment first
becomes due and payable, but if the full amount of the moneys
payable has not been received by the fiscal agent on or prior to
the due date, it means the first date on which, the full amount
of the moneys having been so received and being available for
payment to holders of debt securities of any series, notice to
that effect will have been duly published as set forth below
under Notices.
Modification
and Amendment
Each and every holder of the debt securities in a series must
consent to any amendment of a provision of the debt securities
or the fiscal agency agreement that would:
|
|
|
|
(1)
|
change the due date of the principal of or interest on any
series of debt securities; or
|
|
|
(2)
|
reduce the principal amount, interest rate or amount payable
upon acceleration of the due date of the debt securities of a
series; or
|
|
|
(3)
|
change the currency or place of payment of principal of or
interest on the debt securities of a series; or
|
|
|
(4)
|
reduce the proportion of the principal amount of the debt
securities of a series that must be held by any of the holders
to vote to amend or supplement the terms of the fiscal agency
agreement or the debt securities; or
|
|
|
(5)
|
change our obligation to pay additional amounts.
|
We may, however, with the written consent of the holders of
662/3%
of the principal amount of the debt securities of a series,
modify any of the other terms or provisions of the debt
securities of that series or the fiscal agency agreement (as it
applies to that series). Also, we and the fiscal agent may,
without the consent of the holders of the debt securities of a
series, modify any of the terms and conditions of the fiscal
agency agreement and the debt securities of that series, for the
purpose of:
|
|
|
|
(1)
|
adding to our covenants for the benefit of the holders of the
debt securities; or
|
|
|
(2)
|
surrendering any right or power conferred on CAF; or
|
|
|
(3)
|
securing the debt securities of that series; or
|
|
|
(4)
|
curing any ambiguity or correcting or supplementing any
defective provision of the fiscal agency agreement or the debt
securities; or
|
|
|
(5)
|
for any purpose that we and the fiscal agent may consider
necessary or desirable that does not adversely affect the
interests of the holders of the debt securities of that series
in any material respect.
|
Notices
All notices will be delivered in writing to each holder of the
debt securities of any series. If at the time of such notice the
debt securities of a series are represented by global debt
securities, the notice shall be delivered to the applicable
depositary therefor and shall be deemed to have been given three
business days after delivery to such depositary. If at the time
of the notice the debt securities of a series are not
represented by global debt securities, the notice shall be
delivered to the registered holders of the debt securities of
the series and in that case shall be deemed to have been given
three business days after the mailing of the notice by first
class mail.
Further
Issues
We may from time to time without the consent of holders of the
debt securities create and issue further debt securities so as
to form a single series with an outstanding series of debt
securities.
Governing
Law; Submission to Jurisdiction; Waiver of Immunity
The debt securities are governed by, and shall be construed in
accordance with, the laws of the State of New York. We will
accept the jurisdiction of any state or federal court in the
Borough of Manhattan, The City of New York, in respect of any
action arising out of or based on the debt securities that may
be instituted by any holder of a debt security. We will appoint
CT Corporation in The City of New York as our authorized agent
upon which process in any such action may be served. We will
irrevocably waive any immunity to which we might otherwise be
entitled in any action arising out of or based on the debt
securities brought in
41
any state or federal court in the Borough of Manhattan, The City
of New York. CT Corporation will not be an agent for service of
process for actions brought under the United States securities
laws, and our waiver of immunity will not extend to such actions.
DESCRIPTION
OF THE GUARANTEES
From time to time we may issue under this prospectus and
applicable prospectus supplement guarantees for the benefit of
holders of specified securities of third parties. The issuers of
the underlying securities may or may not be affiliated with us.
A holder of a primary security will also have the benefit of our
guarantee related to the primary security.
The terms and conditions of any guarantee will vary with the
terms and conditions of the underlying securities. A complete
description of the terms and conditions of any guarantee issued
pursuant to this prospectus will be set forth in the prospectus
supplement for the issue of the guarantees.
We may provide guarantees with respect to the certain
obligations of an issuer under its securities, including without
limitation:
|
|
|
|
|
payment of any accrued and unpaid distributions which are
required to be paid under the terms of the securities;
|
|
|
|
payment of the redemption price of the securities, including all
accrued and unpaid distributions to the date of the redemption;
|
|
|
|
payment of any accrued and unpaid interest payments, or payment
of any premium which are required to be made on the
securities; and
|
|
|
|
any obligation of the issuer pursuant to a warrant, option or
other rights.
|
Unless otherwise specified in the applicable prospectus
supplement, guarantees issued under this prospectus will rank
equally with all of our other unsecured general debt
obligations, and will be governed by the laws of the State of
New York.
TAXATION
Full
Member Shareholder Country Taxation
Under the terms of the Constitutive Agreement, we are exempt
from all types of taxes levied by each of the full member
shareholder countries on our income, property and other assets,
and on operations we carry out in accordance with that treaty,
and we are exempt from all liability related to the payment,
retention or collection of any taxes, contributions or tariffs.
Payments of principal and interest in respect of the debt
securities to a non-resident of the full member shareholder
countries will therefore not be subject to taxation in any of
the full member shareholder countries, nor will any withholding
for tax of any of the full member shareholder countries be
required on any such payments to any holder of debt securities.
In the event of the imposition of withholding taxes by any of
the full member shareholder countries, we have undertaken to pay
additional amounts in respect of any payments subject to such
withholding, subject to certain exceptions, as described under
Description of the Debt Securities Additional
Payments by CAF.
United
States Taxation
This section describes the material United States federal income
tax consequences of owning the debt securities we are offering.
It is the opinion of Sullivan & Cromwell LLP, our
counsel. It applies to you only if you acquire debt securities
in the offering at the offering price and you hold your debt
securities as capital assets for tax purposes. This section does
not apply to you if you are a member of a class of holders
subject to special rules, such as:
|
|
|
|
|
a dealer in securities or currencies,
|
|
|
|
a trader in securities that elects to use a
mark-to-market
method of accounting for your securities holdings,
|
|
|
|
a bank,
|
42
|
|
|
|
|
a life insurance company,
|
|
|
|
a tax-exempt organization,
|
|
|
|
a person that owns debt securities that are a hedge or that are
hedged against interest rate risks,
|
|
|
|
a person that owns debt securities as part of a straddle or
conversion transaction for tax purposes, or
|
|
|
|
a United States holder (as defined below) whose functional
currency for tax purposes is not the U.S. dollar.
|
This discussion deals only with debt securities that are due to
mature within 30 years from the date on which they are
issued. The United States federal income tax consequences of
owning debt securities that are due to mature more than
30 years from their date of issue will be discussed in an
applicable prospectus supplement.
This discussion assumes that the debt securities will be issued
at par and that all principal and interest payments on the debt
securities will be denominated in United States dollars. This
discussion also assumes that the principal and interest payments
on the debt securities are not subject to contingencies. The
United States federal income tax consequences of owning Discount
Notes (as defined in Description of the Debt
Securities General above), debt securities
denominated in a currency other than United States dollars
and/or debt
securities subject to contingencies will be discussed in an
applicable prospectus supplement.
If a partnership holds the debt securities, the United States
federal income tax treatment of a partner will generally depend
on the status of the partner and the tax treatment of the
partnership. A partner in a partnership holding the debt
securities should consult its tax advisor with regard to the
United States federal income tax treatment of an investment in
the debt securities.
If you purchase debt securities at a price other than the
offering price, the amortizable bond premium or market discount
rules may also apply to you. You should consult your tax advisor
regarding this possibility.
This section is based on the Internal Revenue Code of 1986, as
amended, its legislative history, existing and proposed
regulations under the Internal Revenue Code, published rulings
and court decisions, all as currently in effect. These laws are
subject to change, possibly on a retroactive basis.
Please consult your own tax advisor concerning the
consequences of owning these debt securities in your particular
circumstances under the Internal Revenue Code and the laws of
any other taxing jurisdiction.
United
States Holders
This subsection describes the tax consequences to a United
States holder. You are a United States holder if you are a
beneficial owner of a debt security and you are:
|
|
|
|
|
a citizen or resident of the United States,
|
|
|
|
a domestic corporation or an entity treated as a domestic
corporation for purposes of the Internal Revenue Code,
|
|
|
|
an estate whose income is subject to United States federal
income tax regardless of its source, or
|
|
|
|
a trust if a United States court can exercise primary
supervision over the trusts administration and one or more
United States persons are authorized to control all substantial
decisions of the trust.
|
If you are not a United States holder, this subsection does not
apply to you and you should refer to United States Alien
Holders below.
Payments of Interest. You will be taxed on
interest on your debt security as ordinary income at the time
you receive the interest or when it accrues, depending on your
method of accounting for tax purposes.
Interest paid by us on the debt securities is income from
sources outside the United States, subject to the rules
regarding the foreign tax credit allowable to a United States
holder. Under the foreign tax credit rules, interest will,
depending on your circumstances, be either passive
or general income for purposes of computing the
foreign tax credit.
Purchase, Sale and Retirement of the Debt
Securities. Your tax basis in your debt security
generally will be its cost. You will generally recognize capital
gain or loss on the sale or retirement of your debt securities
equal to the difference between the amount you realize on the
sale or retirement, excluding any amounts
43
attributable to accrued but unpaid interest, and your tax basis
in your debt securities. Capital gain of a noncorporate United
States holder is generally taxed at preferential rates where the
property is held for more than one year.
Medicare Tax. For taxable years beginning
after December 31, 2012, a United States holder that is an
individual or estate, or a trust that does not fall into a
special class of trusts that is exempt from such tax, will be
subject to a 3.8% tax on the lesser of (1) the United
States holders net investment income for the
relevant taxable year and (2) the excess of the United
States holders modified adjusted gross income for the
taxable year over a certain threshold (which in the case of
individuals will be between $125,000 and $250,000, depending on
the individuals circumstances). A holders net
investment income will generally include its interest income and
its net gains from the disposition of debt securities, unless
such interest income or net gains are derived in the ordinary
course of the conduct of a trade or business (other than a trade
or business that consists of certain passive or trading
activities). If you are a United States holder that is an
individual, estate or trust, you are urged to consult your tax
advisors regarding the applicability of the Medicare tax to your
income and gains in respect of your investment in the debt
securities.
United
States Alien Holders
This subsection describes the tax consequences to a United
States alien holder. You are a United States alien holder if you
are a beneficial owner of a debt security and you are, for
United States federal income tax purposes:
|
|
|
|
|
a nonresident alien individual,
|
|
|
|
a foreign corporation, or
|
|
|
|
an estate or trust that in either case is not subject to United
States federal income tax on a net income basis on income or
gain from a debt security.
|
If you are a United States holder, this subsection does not
apply to you.
Under United States federal income and estate tax law, and
subject to the discussion of backup withholding below, if you
are a United States alien holder of a debt security, interest on
a debt security paid to you is exempt from United States federal
income tax, including withholding tax, whether or not you are
engaged in a trade or business in the United States, unless:
|
|
|
|
|
you are an insurance company carrying on a United States
insurance business to which the interest is attributable, within
the meaning of the Internal Revenue Code, or
|
|
|
|
you both
|
|
|
|
|
|
have an office or other fixed place of business in the United
States to which the interest is attributable and
|
|
|
|
derive the interest in the active conduct of a banking,
financing or similar business within the United States.
|
Purchase, Sale, Retirement and Other Disposition of the Debt
Securities. If you are a United States alien
holder of a debt security, you generally will not be subject to
United States federal income tax on gain realized on the sale,
exchange or retirement of a debt security unless:
|
|
|
|
|
the gain is effectively connected with your conduct of a trade
or business in the United States or
|
|
|
|
you are an individual, you are present in the United States for
183 or more days during the taxable year in which the gain is
realized and certain other conditions exist.
|
For purposes of the United States federal estate tax, the debt
securities will be treated as situated outside the United States
and will not be includible in the gross estate of a holder who
is neither a citizen nor a resident of the United States at the
time of death.
44
Information
with Respect to Foreign Financial Assets
Under recently enacted legislation, individuals that own
specified foreign financial assets with an aggregate
value in excess of $50,000 are generally required to file an
information report with respect to such assets with their tax
returns. Specified foreign financial assets include
any financial accounts maintained by foreign financial
institutions, as well as any of the following, but only if they
are not held in accounts maintained by financial institutions:
(i) stocks and securities issued by
non-United
States persons, (ii) financial instruments and contracts
held for investment that have
non-United
States issuers or counterparties, and (iii) interests in
foreign entities. Holders that are individuals are urged to
consult their tax advisors regarding the application of this
legislation to their ownership of the debt securities.
Backup
Withholding and Information Reporting
If you are a noncorporate United States holder, information
reporting requirements, on Internal Revenue Service
Form 1099, generally will apply to:
|
|
|
|
|
payments of principal and interest on a debt security within the
United States, including payments made by wire transfer from
outside the United States to an account you maintain in the
United States, and
|
|
|
|
the payment of the proceeds from the sale of a debt security
effected at a United States office of a broker.
|
Additionally, backup withholding will apply to such payments if
you are a noncorporate United States holder that:
|
|
|
|
|
fails to provide an accurate taxpayer identification number,
|
|
|
|
is notified by the Internal Revenue Service that you have failed
to report all interest and dividends required to be shown on
your federal income tax returns, or
|
|
|
|
in certain circumstances, fails to comply with applicable
certification requirements.
|
Backup withholding is not an additional tax. Any amounts
withheld under the backup withholding rules may be refunded or
credited against the holders United States federal income
tax liability, if any, provided that the required information is
furnished to the Internal Revenue Service in a timely manner.
If you are a United States alien holder, you are generally
exempt from backup withholding and information reporting
requirements with respect to:
|
|
|
|
|
payments of principal and interest made to you outside the
United States by us or another
non-United
States payor and
|
|
|
|
other payments of principal and interest and the payment of the
proceeds from the sale of a debt security effected at a United
States office of a broker, as long as the income associated with
such payments is otherwise exempt from United States federal
income tax, and:
|
|
|
|
|
|
the payor or broker does not have actual knowledge or reason to
know that you are a United States person and you have furnished
to the payor or broker:
|
|
|
|
|
|
an Internal Revenue Service
Form W-8BEN
or an acceptable substitute form upon which you certify, under
penalties of perjury, that you are a
non-United
States person, or
|
|
|
|
other documentation upon which it may rely to treat the payments
as made to a
non-United
States person in accordance with U.S. Treasury
regulations, or
|
|
|
|
|
|
you otherwise establish an exemption.
|
Payment of the proceeds from the sale of a debt security
effected at a foreign office of a broker generally will not be
subject to information reporting or backup withholding. However,
a sale of a debt security that is effected at a foreign office
of a broker will be subject to information reporting and backup
withholding if:
|
|
|
|
|
the proceeds are transferred to an account maintained by you in
the United States,
|
45
|
|
|
|
|
the payment of proceeds or the confirmation of the sale is
mailed to you at a United States address, or
|
|
|
|
the sale has some other specified connection with the United
States as provided in U.S. Treasury regulations,
|
unless the broker does not have actual knowledge or reason to
know that you are a United States person and the documentation
requirements described above are met or you otherwise establish
an exemption.
In addition, a sale of a debt security effected at a foreign
office of a broker will be subject to information reporting if
the broker is:
|
|
|
|
|
a United States person,
|
|
|
|
a controlled foreign corporation for United States tax purposes,
|
|
|
|
a foreign person 50% or more of whose gross income is
effectively connected with the conduct of a United States trade
or business for a specified three-year period, or
|
|
|
|
a foreign partnership, if at any time during its tax year:
|
|
|
|
|
|
one or more of its partners are U.S. persons,
as defined in U.S. Treasury regulations, who in the
aggregate hold more than 50% of the income or capital interest
in the partnership, or
|
|
|
|
such foreign partnership is engaged in the conduct of a United
States trade or business,
|
unless the broker does not have actual knowledge or reason to
know that you are a United States person and the documentation
requirements described above are met or you otherwise establish
an exemption. Backup withholding will apply if the sale is
subject to information reporting and the broker has actual
knowledge that you are a United States person.
46
PLAN OF
DISTRIBUTION
We may sell the securities described in this prospectus to one
or more underwriters for public offering and sale by them or may
sell the securities to investors directly or through agents,
which agents may be affiliated with us. Any such underwriter or
agent involved in the offer and sale of the securities will be
named in the accompanying prospectus supplement.
We may sell our guarantees separately from our debt securities
to guarantee certain obligations associated with the securities
of third party issuers. In such cases, we may sell the
guarantees in the same transaction as the sale of the underlying
security or we may sell the guarantee independently to guarantee
the obligations of outstanding securities of third party issuers.
Sales of securities offered pursuant to any prospectus
supplement may be effected from time to time in one or more
transactions at a fixed price or prices which may be changed, at
prices related to the prevailing market prices at the time of
sale or at negotiated prices. We also may, from time to time,
authorize underwriters, acting as our agents, to offer and sell
securities upon the terms and conditions set forth in the
prospectus supplement. In connection with the sale of
securities, underwriters may be deemed to have received
compensation from us in the form of underwriting discounts or
commissions and may also receive commissions from purchasers of
securities for whom they may act as agent. Underwriters may sell
securities to or through dealers, and such dealers may receive
compensation in the form of discounts, concessions or
commissions from the underwriters
and/or
commissions from purchasers of securities for whom they may act
as agent.
Any underwriting compensation we pay to underwriters or agents
in connection with the offering of securities, and any
discounts, concessions or commissions allowed by underwriters to
participating dealers, will be set forth in the prospectus
supplement. Underwriters, dealers and agents participating in
the distribution of the securities may be deemed to be
underwriters, and any discounts, concessions or commissions
received by them and any profit realized by them on resale of
the securities may be deemed to be underwriting discounts and
commissions under the Securities Act. Underwriters, dealers and
agents may be entitled, under agreements entered into with CAF,
to several indemnification against and contribution toward
certain civil liabilities, including liabilities under the
Securities Act.
Unless otherwise specified in the prospectus supplement, each
series of securities will be a new issue with no established
trading market. We may elect to list any series of securities on
any exchange, but we are not obligated to do so.
One or more underwriters may make a market in a series of
securities, but they will not be obligated to do so and may
discontinue any market making at any time without notice.
Neither we nor any underwriter can give assurances as to the
liquidity of the trading market for the securities.
Certain of the underwriters, agents and their affiliates may be
customers of, engage in transactions with and perform services
for CAF in the ordinary course of business, for which they
received or will receive customary fees and expenses.
VALIDITY
OF THE DEBT SECURITIES
In connection with particular offerings of the debt securities
in the future, and if stated in the applicable prospectus
supplements, the validity of those debt securities will be
passed upon for us by Sullivan & Cromwell LLP,
Washington, D.C., and for any underwriters or agents by
counsel named in the applicable prospectus supplement.
Sullivan & Cromwell LLP and counsel to the
underwriters or agents may rely as to certain matters on the
opinion of our General Legal Counsel.
VALIDITY
OF THE GUARANTEES
The validity of the guarantees will be passed upon for us by
counsel to be named in the applicable prospectus supplement. The
validity of the guarantees will be passed upon for the
underwriters by counsel to be named in the applicable prospectus
supplement.
47
EXPERTS
On March 17, 2009, the shareholders general meeting
approved the appointment of Lara Marambio & Asociados,
a member firm of Deloitte Touche Tohmatsu Limited, as our
external auditor for a three year term, subject to annual
reappointment, commencing with the audit of the fiscal year
ended December 31, 2009. The appointment of Lara
Marambio & Asociados, a member firm of Deloitte Touche
Tohmatsu Limited, followed a competitive bidding process in
anticipation of the end of the term during which KPMG in
Venezuela served as our external auditor. The change of our
external auditor was not the result of any disagreements with
KPMG in Venezuela over our accounting or financial disclosure,
as there have been no such disagreements.
The balance sheet as of December 31, 2010 and 2009 and the
related statements of income, stockholders equity and cash
flows in the two year period ended December 31, 2010,
included in this prospectus, have been audited by Lara
Marambio & Asociados, a member firm of Deloitte Touche
Tohmatsu Limited, independent auditors, as stated in their
report appearing elsewhere herein, and are included in reliance
upon their report given on the authority of this firm as experts
in accounting and auditing.
The statements of income, stockholders equity and cash
flows for the year ended December 31, 2008, included in
this prospectus, have been audited by KPMG in Venezuela,
independent auditors, as stated in their report appearing
elsewhere herein, and are included in reliance upon their report
given on the authority of this firm as experts in accounting and
auditing.
AUTHORIZED
REPRESENTATIVE
Our authorized representative in the United States of America is
Puglisi & Associates. The address of the authorized
representative in the United States is 850 Library Avenue,
Suite 204, Newark, Delaware 19711.
WHERE YOU
CAN FIND MORE INFORMATION
This registration statement of which the prospectus forms a
part, including its various exhibits, is available to the public
over the internet at the SECs website:
http://www.sec.gov.
You may also read and copy these documents at the Securities and
Exchange Commissions Public Reference Room, at the
following address:
SEC Public Reference Room
100 F Street, N.E.
Washington, D.C. 20549
Please call the Securities and Exchange Commission at
1-800-SEC-0330
for further information about how to access the documents we
have filed with it.
The information set forth herein, except the information
appearing in the section entitled The Full Member
Shareholder Countries, is stated on the authority of the
Acting Executive President of CAF, in his duly authorized
capacity as Acting Executive President.
CORPORACIÓN ANDINA DE FOMENTO
|
|
|
|
By:
|
/s/ Luis
Enrique Berrizbeitia
|
Name: Luis Enrique Berrizbeitia
|
|
|
|
Title:
|
Acting Executive President
|
48
MANAGEMENTS
REPORT ON THE EFFECTIVENESS OF INTERNAL CONTROL
OVER FINANCIAL REPORTING
The Management of Corporación Andina de Fomento (CAF) is
responsible for establishing and maintaining effective internal
control over financial reporting in CAF. Management has
evaluated CAFs internal control over financial reporting
as of December 31, 2010, based on the criteria for
effective internal control determined in the Internal
Control-Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission
(COSO).
CAFs internal control over financial reporting is a
process effected by those in charge of governance, management,
and other personnel, designed to provide reasonable assurance
regarding the preparation of reliable financial statements in
accordance with U.S. generally accepted accounting
principles. An entitys internal control over financial
reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the entity;
(2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial
statements in accordance with U.S. generally accepted
accounting principles, and that receipts and expenditures of the
entity are being made only in accordance with authorizations of
management and those charged with governance; and
(3) provide reasonable assurance regarding prevention, or
timely detection and correction of unauthorized acquisition,
use, or disposition of the entitys assets that could have
a material effect on the financial statements.
Management has assessed the effectiveness of CAFs internal
control over financial reporting as of December 31, 2010.
Based on this assessment, CAFs Management concluded that
CAFs internal control over financial reporting was
effective as of December 31, 2010.
There are inherent limitations in the effectiveness of any
internal control system, including the possibility of human
error and the deception or overriding of controls. Accordingly,
even an effective internal control can provide only reasonable
assurance with respect to financial statement preparation.
Further, because of changes in conditions, the effectiveness of
internal control may vary over time.
CAFs financial statements as of December 31, 2010,
have been audited by an independent accounting firm, which has
also issued an attestation report on managements assertion
on the effectiveness of CAFs internal control over
financial reporting. The attestation report, which is included
in this document, expresses an unqualified opinion on
managements assertion on the effectiveness of CAFs
internal control over financial reporting as of
December 31, 2010.
|
|
|
L. Enrique García
Executive President
and Chief Executive Officer
|
|
Hugo Sarmiento K.
Corporate Vice President,
Chief Financial Officer
|
Marcos Subía G.
Director, Accounting and Budget
February 11, 2011
F-2
INDEPENDENT
ACCOUNTANTS REPORT ON MANAGEMENTS ASSERTION ON
EFFECTIVENESS OF INTERNAL CONTROL OVER FINANCIAL
REPORTING
To the Board of Directors and Stockholders of
Corporación Andina de Fomento (CAF):
We have examined managements assertion, included in the
accompanying Managements Report on the Effectiveness of
Internal Control Over Financial Reporting, that
Corporación Andina de Fomento (CAF) maintained effective
internal control over financial reporting as of
December 31, 2010, based on criteria established in
Internal Control Integrated Framework issued by
the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). CAFs management is responsible for
maintaining effective internal control over financial reporting,
and for its assertion on the effectiveness of internal control
over financial reporting, included in the accompanying
Managements Report on the Effectiveness of Internal
Control Over Financial Reporting. Our responsibility is to
express an opinion on managements assertion based on our
examination.
We conducted our examination in accordance with attestation
standards established by the American Institute of Certified
Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about
whether effective internal control over financial reporting was
maintained in all material respects. Our examination included
obtaining an understanding of internal control over financial
reporting, assessing the risk that a material weakness exists,
and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk.
Our examination also included performing such other procedures
as we considered necessary in the circumstances. We believe that
our examination provides a reasonable basis for our opinion.
An entitys internal control over financial reporting is a
process effected by those charged with governance, management,
and other personnel, designed to provide reasonable assurance
regarding the preparation of reliable financial statements in
accordance with U.S. generally accepted accounting
principles. An entitys internal control over financial
reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the entity;
(2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial
statements in accordance with United States of America generally
accepted accounting principles, and that receipts and
expenditures of the entity are being made only in accordance
with authorizations of management and those charged with
governance; and (3) provide reasonable assurance regarding
prevention, or timely detection and correction of unauthorized
acquisition, use, or disposition of the entitys assets
that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over
financial reporting may not prevent, or detect and correct
misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures
may deteriorate.
In our opinion, managements assertion that CAF maintained
effective internal control over financial reporting as of
December 31, 2010 is fairly stated, in all material
respects, based on the criteria established in Internal
Control Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission
(COSO).
We also have audited, in accordance with auditing standards
generally accepted in the United States of America, the balance
sheets of CAF as of December 31, 2010 and 2009, and the
related statements of income, stockholders equity and cash
flows for the years then ended, and our report dated
February 11, 2011 expressed an unqualified opinion of those
financial statements.
Deloitte
February 11, 2011
Caracas Venezuela
Lara Marambio &
Asociados. A member firm of Deloitte Touche Tohmatsu Limited.
Deloitte refers to one or more of Deloitte Touche Tohmatsu
Limited, a UK private company limited by guarantee, and its
network of member firms, each of which is a legally separate and
independent entity. Please see www.deloitte.com/about for
a detailed description of the legal structure of Deloitte Touche
Tohmatsu Limited and its member firms.
F-3
REPORT OF
INDEPENDENT AUDITORS
To the Board of Directors and Stockholders of
Corporación Andina de Fomento (CAF):
We have audited the accompanying balance sheet of
Corporación Andina de Fomento (CAF) as of December 31,
2010 and 2009 and the related statements of income,
stockholders equity and cash flows for the years then
ended. These financial statements are the responsibility of
CAFs management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards
generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position
of Corporación Andina de Fomento (CAF) as of
December 31, 2010 and 2009, and the result of its
operations and its cash flows for the years then ended, in
accordance with accounting principles generally accepted in the
United States of America.
We also have examined, in accordance with attestation standards
established by the American Institute of Certified Public
Accountants, the managements assertion that CAF maintained
effective internal control over financial reporting at
December 31, 2010, based on criteria established in
Internal Control Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO), and our report dated February 11, 2011
expressed an unqualified opinion thereon.
Deloitte
February 11, 2011
Caracas Venezuela
Lara Marambio &
Asociados. A member firm of Deloitte Touche Tohmatsu Limited.
Deloitte refers to one or more of
Deloitte Touche Tohmatsu Limited, a UK private company limited
by guarantee, and its network of member firms, each of which is
a legally separate and independent entity. Please see
www.deloitte.com/about for a detailed description of the
legal structure of Deloitte Touche Tohmatsu Limited and its
member firms.
F-4
INDEPENDENT
AUDITORS REPORT
To the Board of Directors and Stockholders of
Corporación Andina de Fomento (CAF):
We have audited the accompanying statements of income,
stockholders equity and cash flows of Corporación
Andina de Fomento (CAF) for the year ended December 31,
2008. These financial statements are the responsibility of
CAFs management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards
generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the results of
operations and cash flows of Corporación Andina de Fomento
(CAF) for the year ended December 31, 2008 in accordance
with U.S. generally accepted accounting principles.
KPMG
February 13, 2009
Caracas, Venezuela
Alcaraz Cabrera Vázquez, firma
venezolana miembro de
KPMG International, una cooperativa
Suiza
F-5
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Balance Sheets
December 31, 2010 and 2009
(In thousands of U.S. dollars)
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
|
|
2010
|
|
|
2009
|
|
|
Cash and due from banks
|
|
|
|
|
119,834
|
|
|
|
29,906
|
|
Deposits with banks
|
|
2
|
|
|
1,403,443
|
|
|
|
1,237,863
|
|
Marketable securities:
|
|
|
|
|
|
|
|
|
|
|
Trading
|
|
3 and 18
|
|
|
2,456,745
|
|
|
|
2,214,254
|
|
Other investments
|
|
2
|
|
|
146,852
|
|
|
|
203,361
|
|
Loans (including US$67,678 and US$61,458, at fair value as of
December 31, 2010 and 2009)
|
|
4 and 18
|
|
|
13,783,043
|
|
|
|
11,686,689
|
|
Less loan commissions, net of origination costs
|
|
|
|
|
70,129
|
|
|
|
56,125
|
|
Less allowance for losses
|
|
4
|
|
|
141,364
|
|
|
|
143,911
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, net
|
|
|
|
|
13,571,550
|
|
|
|
11,486,653
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity investments
|
|
5
|
|
|
94,721
|
|
|
|
85,482
|
|
Accrued interest and commissions receivable
|
|
|
|
|
159,559
|
|
|
|
135,705
|
|
Derivative instruments
|
|
17 and 18
|
|
|
524,989
|
|
|
|
436,745
|
|
Property and equipment, net
|
|
6
|
|
|
29,901
|
|
|
|
28,074
|
|
Other assets
|
|
7
|
|
|
39,281
|
|
|
|
29,026
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
18,546,875
|
|
|
|
15,887,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS EQUITY
|
|
LIABILITIES
|
Deposits
|
|
8
|
|
|
2,739,497
|
|
|
|
2,650,706
|
|
Commercial paper
|
|
9
|
|
|
1,524,285
|
|
|
|
1,265,417
|
|
Bonds (US$7,089,124 and US$5,588,862 as of December 31,
2010 and 2009, at fair value)
|
|
10 and 18
|
|
|
7,212,812
|
|
|
|
5,699,219
|
|
Borrowings and other obligations (US$347,310 and US$137,555 at
fair value as of December 31, 2010 and 2009)
|
|
11 and 18
|
|
|
998,089
|
|
|
|
788,467
|
|
Accrued interest payable
|
|
|
|
|
120,001
|
|
|
|
98,093
|
|
Derivative instruments
|
|
17 and 18
|
|
|
132,887
|
|
|
|
45,136
|
|
Accrued expenses and other liabilities
|
|
12
|
|
|
66,117
|
|
|
|
53,227
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
12,793,688
|
|
|
|
10,600,265
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS EQUITY
|
|
14
|
|
|
|
|
|
|
|
|
Subscribed and paid-in capital (authorized capital
US$10,000 million)
|
|
|
|
|
2,813,940
|
|
|
|
2,485,645
|
|
Additional paid-in capital
|
|
|
|
|
616,171
|
|
|
|
539,222
|
|
Reserves
|
|
|
|
|
2,156,937
|
|
|
|
2,027,228
|
|
Retained earnings
|
|
|
|
|
166,139
|
|
|
|
234,709
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders equity
|
|
|
|
|
5,753,187
|
|
|
|
5,286,804
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders equity
|
|
|
|
|
18,546,875
|
|
|
|
15,887,069
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the financial statements
F-6
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Years ended December 31, 2010, 2009
and 2008
(In thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
1(f)
|
|
|
320,068
|
|
|
|
398,737
|
|
|
|
549,139
|
|
Investments and deposits with banks
|
|
1(e) and 3
|
|
|
33,965
|
|
|
|
67,318
|
|
|
|
67,983
|
|
Loan commissions
|
|
1(f)
|
|
|
31,522
|
|
|
|
17,798
|
|
|
|
35,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income
|
|
|
|
|
385,555
|
|
|
|
483,853
|
|
|
|
652,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
9,255
|
|
|
|
14,413
|
|
|
|
55,721
|
|
Commercial paper
|
|
|
|
|
9,771
|
|
|
|
7,187
|
|
|
|
29,028
|
|
Advances and short-term borrowings
|
|
|
|
|
|
|
|
|
1,011
|
|
|
|
10,779
|
|
Bonds
|
|
|
|
|
136,651
|
|
|
|
139,614
|
|
|
|
193,054
|
|
Borrowings and other obligations
|
|
|
|
|
10,057
|
|
|
|
16,094
|
|
|
|
34,172
|
|
Commissions
|
|
|
|
|
7,481
|
|
|
|
10,406
|
|
|
|
5,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense
|
|
|
|
|
173,215
|
|
|
|
188,725
|
|
|
|
327,927
|
|
Net interest income
|
|
|
|
|
212,340
|
|
|
|
295,128
|
|
|
|
324,453
|
|
Credit to allowance for loan losses
|
|
4
|
|
|
(2,990
|
)
|
|
|
(1,656
|
)
|
|
|
(22,970
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, after credit to allowance for loan losses
|
|
|
|
|
215,330
|
|
|
|
296,784
|
|
|
|
347,423
|
|
Non-interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other commissions
|
|
|
|
|
3,798
|
|
|
|
3,319
|
|
|
|
1,741
|
|
Dividends and equity in earnings of investees
|
|
|
|
|
3,301
|
|
|
|
9,596
|
|
|
|
6,487
|
|
Other income
|
|
|
|
|
801
|
|
|
|
1,082
|
|
|
|
1,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest income
|
|
|
|
|
7,900
|
|
|
|
13,997
|
|
|
|
9,531
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administrative expenses
|
|
|
|
|
69,735
|
|
|
|
62,562
|
|
|
|
56,482
|
|
Impairment charge for equity investments
|
|
|
|
|
|
|
|
|
|
|
|
|
1,157
|
|
Other expenses
|
|
|
|
|
1,069
|
|
|
|
147
|
|
|
|
1,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expenses
|
|
|
|
|
70,804
|
|
|
|
62,709
|
|
|
|
58,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income before unrealized changes in fair value related to
financial instruments
|
|
|
|
|
152,426
|
|
|
|
248,072
|
|
|
|
297,991
|
|
Unrealized changes in fair value related to financial instruments
|
|
|
|
|
13,713
|
|
|
|
(13,363
|
)
|
|
|
|
|
Changes arising from fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
13,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
166,139
|
|
|
|
234,709
|
|
|
|
311,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the financial statements
F-7
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Years ended December 31, 2010, 2009
and 2008
(In thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscribed
|
|
|
Additional
|
|
|
Reserve pursuant to
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
and paid-
|
|
|
paid-in
|
|
|
General
|
|
|
Article N° 42
|
|
|
Total
|
|
|
Retained
|
|
|
stockholders
|
|
|
|
Note
|
|
|
in capital
|
|
|
capital
|
|
|
reserve
|
|
|
of by-laws
|
|
|
reserves
|
|
|
earnings
|
|
|
equity
|
|
|
Balances at December 31, 2007
|
|
|
|
|
|
|
2,014,750
|
|
|
|
234,355
|
|
|
|
1,189,931
|
|
|
|
287,474
|
|
|
|
1,477,405
|
|
|
|
400,799
|
|
|
|
4,127,309
|
|
Capital increase
|
|
|
14
|
|
|
|
81,160
|
|
|
|
126,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
207,580
|
|
Stock dividends
|
|
|
14
|
|
|
|
80,520
|
|
|
|
(80,520
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
311,474
|
|
|
|
311,474
|
|
Appropriated for general reserve
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
268,249
|
|
|
|
|
|
|
|
268,249
|
|
|
|
(268,249
|
)
|
|
|
|
|
Appropriated for reserve pursuant to Article N° 42 of
by-laws
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40,100
|
|
|
|
40,100
|
|
|
|
(40,100
|
)
|
|
|
|
|
Distributions to stockholders funds
|
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(92,450
|
)
|
|
|
(92,450
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at December 31, 2008
|
|
|
|
|
|
|
2,176,430
|
|
|
|
280,255
|
|
|
|
1,458,180
|
|
|
|
327,574
|
|
|
|
1,785,754
|
|
|
|
311,474
|
|
|
|
4,553,913
|
|
Capital increase
|
|
|
14
|
|
|
|
209,135
|
|
|
|
359,047
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
568,182
|
|
Stock dividends
|
|
|
14
|
|
|
|
100,080
|
|
|
|
(100,080
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
234,709
|
|
|
|
234,709
|
|
Appropriated for general reserve
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
210,335
|
|
|
|
|
|
|
|
210,335
|
|
|
|
(210,335
|
)
|
|
|
|
|
Appropriated for reserve pursuant to Article N° 42 of
by-laws
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,139
|
|
|
|
31,139
|
|
|
|
(31,139
|
)
|
|
|
|
|
Distributions to stockholders funds
|
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(70,000
|
)
|
|
|
(70,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at December 31, 2009
|
|
|
|
|
|
|
2,485,645
|
|
|
|
539,222
|
|
|
|
1,668,515
|
|
|
|
358,713
|
|
|
|
2,027,228
|
|
|
|
234,709
|
|
|
|
5,286,804
|
|
Capital increase
|
|
|
14
|
|
|
|
150,835
|
|
|
|
254,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
405,244
|
|
Stock dividends
|
|
|
14
|
|
|
|
177,460
|
|
|
|
(177,460
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
166,139
|
|
|
|
166,139
|
|
Appropriated for general reserve
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
106,238
|
|
|
|
|
|
|
|
106,238
|
|
|
|
(106,238
|
)
|
|
|
|
|
Appropriated for reserve pursuant to Article N° 42 of
by-laws
|
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,471
|
|
|
|
23,741
|
|
|
|
(23,471
|
)
|
|
|
|
|
Distributions to stockholders funds
|
|
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(105,000
|
)
|
|
|
(105,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at December 31, 2010
|
|
|
|
|
|
|
2,813,940
|
|
|
|
616,171
|
|
|
|
1,774,753
|
|
|
|
382,184
|
|
|
|
2,156,937
|
|
|
|
166,139
|
|
|
|
5,753,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the financial statements
F-8
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Years ended December 31, 2010, 2009
and 2008
(In thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
166,139
|
|
|
|
234,709
|
|
|
|
311,474
|
|
Adjustments to reconcile net income to net cash used in
operating activities -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on trading securities
|
|
|
3
|
|
|
|
4,209
|
|
|
|
2,924
|
|
|
|
10,955
|
|
Amortization of loan commissions, net of origination costs
|
|
|
|
|
|
|
(11,943
|
)
|
|
|
(8,148
|
)
|
|
|
(11,952
|
)
|
Credit to allowance for loan losses
|
|
|
4
|
|
|
|
(2,990
|
)
|
|
|
(1,656
|
)
|
|
|
(22,970
|
)
|
Impairment charge for equity investments
|
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
1,157
|
|
Equity in earnings of investees
|
|
|
|
|
|
|
(678
|
)
|
|
|
(9,129
|
)
|
|
|
(4,208
|
)
|
Amortization of deferred charges
|
|
|
|
|
|
|
2,297
|
|
|
|
1,864
|
|
|
|
1,668
|
|
Depreciation of property and equipment
|
|
|
6
|
|
|
|
2,224
|
|
|
|
1,659
|
|
|
|
3,094
|
|
Provision for employees severance indemnities and benefits
|
|
|
|
|
|
|
7,812
|
|
|
|
7,162
|
|
|
|
6,151
|
|
Provision for employees savings plan
|
|
|
|
|
|
|
1,334
|
|
|
|
1,366
|
|
|
|
1,416
|
|
Unrealized changes in fair value related to financial instruments
|
|
|
|
|
|
|
(13,713
|
)
|
|
|
13,363
|
|
|
|
|
|
Changes arising from fair value hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,483
|
|
Net changes in operating assets and liabilities -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance indemnities paid or advanced
|
|
|
|
|
|
|
(3,973
|
)
|
|
|
(5,352
|
)
|
|
|
(3,603
|
)
|
Employees savings plan paid or advanced
|
|
|
|
|
|
|
(31
|
)
|
|
|
(717
|
)
|
|
|
(48
|
)
|
Trading securities, net
|
|
|
3
|
|
|
|
(246,700
|
)
|
|
|
(518,558
|
)
|
|
|
(707,166
|
)
|
Interest and commissions receivable
|
|
|
|
|
|
|
(23,854
|
)
|
|
|
59,532
|
|
|
|
36,273
|
|
Other assets
|
|
|
|
|
|
|
(12,552
|
)
|
|
|
1,667
|
|
|
|
(28,773
|
)
|
Accrued interest payable
|
|
|
|
|
|
|
21,908
|
|
|
|
(39,911
|
)
|
|
|
(15,934
|
)
|
Accrued expenses and other liabilities
|
|
|
|
|
|
|
7,748
|
|
|
|
(3,929
|
)
|
|
|
(1,068
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjustments and net changes in operating assets and
liabilities
|
|
|
|
|
|
|
(268,902
|
)
|
|
|
(497,863
|
)
|
|
|
(721,525
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
|
|
|
|
(102,763
|
)
|
|
|
(263,154
|
)
|
|
|
(410,051
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of other investments
|
|
|
2
|
|
|
|
(273,927
|
)
|
|
|
(903,182
|
)
|
|
|
(3,583,769
|
)
|
Maturities of other investments
|
|
|
2
|
|
|
|
330,436
|
|
|
|
856,201
|
|
|
|
4,683,570
|
|
Securities purchased under resale agreements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36,400
|
|
Purchases of other investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(448,120
|
)
|
Maturities of other investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
401,608
|
|
Loan origination and principal collections, net
|
|
|
4
|
|
|
|
(2,070,844
|
)
|
|
|
(1,480,678
|
)
|
|
|
(620,459
|
)
|
Equity investments
|
|
|
5
|
|
|
|
(8,561
|
)
|
|
|
(1,287
|
)
|
|
|
2,302
|
|
Purchases of property and equipment
|
|
|
6
|
|
|
|
(4,051
|
)
|
|
|
(5,684
|
)
|
|
|
(3,327
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by investing activities
|
|
|
|
|
|
|
(2,026,947
|
)
|
|
|
(1,534,630
|
)
|
|
|
468,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carried forward,
|
|
|
|
|
|
|
(2,129,710
|
)
|
|
|
(1,797,784
|
)
|
|
|
58,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the financial statements
F-9
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Statements
of Cash Flows, Continued
Years ended December 31, 2010, 2009 and
2008
(In thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Brought forward,
|
|
|
|
|
|
|
(2,129,710
|
)
|
|
|
(1,797,784
|
)
|
|
|
58,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in deposits
|
|
|
|
|
|
|
88,791
|
|
|
|
(122,413
|
)
|
|
|
1,252,072
|
|
Net increase (decreases) in commercial paper
|
|
|
|
|
|
|
258,868
|
|
|
|
607,023
|
|
|
|
(225,405
|
)
|
Proceeds from advances and short-term borrowings
|
|
|
|
|
|
|
|
|
|
|
91,295
|
|
|
|
487,304
|
|
Repayment of advances and short-term borrowings
|
|
|
|
|
|
|
|
|
|
|
(240,168
|
)
|
|
|
(735,018
|
)
|
Proceeds from issuance of bonds
|
|
|
10
|
|
|
|
1,986,056
|
|
|
|
1,256,876
|
|
|
|
626,298
|
|
Repayment of bonds
|
|
|
10
|
|
|
|
(448,608
|
)
|
|
|
(618,567
|
)
|
|
|
(296,575
|
)
|
Proceeds from borrowings and other obligations
|
|
|
11
|
|
|
|
337,008
|
|
|
|
254,637
|
|
|
|
53,664
|
|
Repayment of borrowings and other obligations
|
|
|
11
|
|
|
|
(137,141
|
)
|
|
|
(147,748
|
)
|
|
|
(177,948
|
)
|
Distributions to stockholders funds
|
|
|
15
|
|
|
|
(105,000
|
)
|
|
|
(70,000
|
)
|
|
|
(92,450
|
)
|
Proceeds from issuance of shares
|
|
|
14
|
|
|
|
405,244
|
|
|
|
568,182
|
|
|
|
207,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
|
|
|
|
2,385,218
|
|
|
|
1,579,117
|
|
|
|
1,099,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
|
|
|
255,508
|
|
|
|
(218,667
|
)
|
|
|
1,157,676
|
|
Cash and cash equivalents at beginning of year
|
|
|
|
|
|
|
1,267,769
|
|
|
|
1,486,436
|
|
|
|
328,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of year
|
|
|
|
|
|
|
1,523,277
|
|
|
|
1,267,769
|
|
|
|
1,486,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consisting of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
|
|
|
|
119,834
|
|
|
|
29,906
|
|
|
|
152,801
|
|
Deposits with banks
|
|
|
|
|
|
|
1,403,443
|
|
|
|
1,237,863
|
|
|
|
1,333,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,523,277
|
|
|
|
1,267,769
|
|
|
|
1,486,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid during the year
|
|
|
|
|
|
|
143,237
|
|
|
|
216,958
|
|
|
|
343,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncash financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in derivative instruments assets
|
|
|
|
|
|
|
88,244
|
|
|
|
(239,441
|
)
|
|
|
239,601
|
|
Change in derivative instruments liabilities
|
|
|
|
|
|
|
87,751
|
|
|
|
(13,886
|
)
|
|
|
50,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to the financial statements
F-10
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
|
|
1.
|
Significant
Accounting Policies
|
a. Description of Business
Corporación Andina de Fomento (CAF) commenced
operations on June 8, 1970 established under public
international law which abides by the provisions of its by-laws.
Series A and B Shareholder countries
are: Bolivia, Brazil, Colombia, Ecuador, Panama, Peru, Uruguay
and Venezuela. Series C Shareholder countries are:
Argentina, Chile, Costa Rica, Dominican Republic, Jamaica,
Mexico, Paraguay, Spain and Trinidad and Tobago. In addition,
there are 14 banks which are Series B shareholders.
CAF has its headquarters in Caracas, Venezuela.
CAFs objective is to support sustainable development and
economic integration within Latin America and the Caribbean by
helping the shareholder countries make their economies
diversified, competitive and more responsive to social needs.
CAF offers financial and related services to the governments of,
and public and private institutions, corporations and joint
ventures in, its Shareholder countries. Primarily, CAFs
principal activity is to provide short, medium and long-term
loans to finance projects, working capital, trade activities and
to undertake feasibility studies for investment opportunities in
its Shareholder countries. Furthermore, CAF manages and
supervises third-party cooperation funds of other countries and
organizations, generally non-reimbursable, destined to finance
programs agreed with donor organizations which are in line with
CAF policies and strategies.
CAF raises funds for operations both within and outside its
shareholder countries.
b. Financial Statement Presentation The
financial statements have been prepared in accordance with
U.S. generally accepted accounting principles and the
functional currency is the U.S. dollar.
In preparing financial statements in conformity with
U.S. generally accepted accounting principles, management
is required to make estimates and assumptions that affect the
reported amounts of assets and liabilities as of the date of the
balance sheet and reported amounts of revenues and expenses
during the reporting period.
Certain amounts in the 2008 financial statements have been
reclassified to conform to the current years presentation.
c. Transactions in Other Currencies
Transactions in currencies other than U.S. dollars are
translated at exchange rates prevailing on the international
markets at the dates of the transactions. Other currency
balances are translated at year-end exchange rates. Any gains or
losses on foreign exchange including related hedge effects are
included in the statement of income.
d. Cash and Cash Equivalents Cash and
cash equivalents are defined as cash, due from banks and
short-term deposits with an original maturity of three months or
less.
e. Marketable Securities CAF classifies
its investments, in accordance with management intention, in
debt securities in one of two categories: trading or
held-to-maturity.
Trading securities are bought and held principally for the
purpose of selling them in the near term.
Held-to-maturity
securities are those securities which CAF has the ability and
intent to hold until maturity.
Trading securities are recorded at fair value. Gains and losses
on trading securities are included in interest income of
investments and deposits with banks in the statements of income.
Held-to-maturity
securities are recorded at amortized cost, adjusted for the
amortization or accretion of premiums or discounts. A decline in
the market value of any
held-to-maturity
security below cost that is deemed to be other than temporary
results in a reduction in carrying amount. The impairment is
charged to
F-11
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
income and a new cost basis for the security is established.
Premiums and discounts are amortized or accreted over the life
of the related
held-to-maturity
security as an adjustment to yield using the effective interest
method.
Dividend and interest income are recognized when received and
earned, respectively.
f. Loans CAF grants short, medium and
long-term loans to finance projects, working capital, trade
activities and undertake feasibility studies for investment
opportunities in its shareholder countries. Loans are reported
at their outstanding unpaid principal balances adjusted for
charge-offs, less the allowance for loan losses and loan
commissions net of origination costs. Interest income is accrued
on the unpaid principal balance. Loan commission fees, net of
certain direct origination costs, are deferred and recognized as
an adjustment of the related loan yield using the interest
method and are presented as loan commissions in the statement of
income.
The accrual for interest on loans is discontinued at the time a
private sector loan is 90 days (180 days for public
sector loans) delinquent unless the credit is well-secured and
in process of collection.
All interest accrued but not collected for loans that are placed
on nonaccrual or charged off is reversed against interest
income. The interest on these loans is accounted for on the
cash-basis, until qualifying for return to accrual. Loans are
returned to accrual status when all the principal and interest
amounts contractually due are brought current and future
payments are reasonably assured.
The nonaccrual loans are considered impaired. Factors considered
by management in determining impairment include payments status
and the probability of collecting scheduled principal and
interest payments when due.
In compliance with its objective and financial policies, CAF
grants loans both to public and private entities for development
and integration programmes and projects in Shareholder
countries. Accordingly, CAF maintains risk exposure policies to
avoid concentrating its loan portfolio in one country or
specific economic groups, which might be affected by market and
other circumstances. Due to that fact, CAF uses certain
measurement parameters, such as CAFs net
stockholders equity, total loan portfolio and economic
groups from public and private sectors, among others.
g. Equity Investments CAF participates
with equity investments in companies and investment funds in
strategic sectors, with a view to promoting the development of
such companies and their participation in the securities markets
and to serve as a catalytic agent in attracting resources into
the Shareholder countries.
Equity investments are accounted for using the equity method or
at cost. If CAF has the ability to exercise significant
influence over the operating and financial policies of the
investee, which is generally presumed to exist at a 20% of
equity ownership level, the equity investments are accounted for
using the equity method. Under the equity method, the carrying
value of the equity investment is adjusted for CAFs
proportionate share of earnings or losses, dividends received
and certain other transactions of the investee company. These
investments do not have readily determinable fair values.
A decline in the value of any equity investment accounted at
cost that is deemed to be other than temporary, results in a
reduction in the carrying amount to fair value. These
investments are evaluated, and any impairment is charged to
income and a new cost basis for the investment is established.
h. Allowance for Loan Losses The
allowance for loan losses is maintained at a level CAF
believes is adequate but not excessive to absorb probable losses
inherent in the loan portfolio as of the date of the financial
statements. The general allowance for loan losses is established
by CAF based on the individual risk rating for the long-term
other currency debt of the borrower countries which is assigned
by the international
F-12
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
risk rating agencies as of the date of the financial statements
preparation. This country risk rating considers a default
probability. Given CAFs status as a preferred creditor and
taking into account the immunities and privileges conferred into
it by its shareholder countries, which are established in
CAFs by-laws and other similar agreements, a factor
reflecting a lower default probability usually
equivalent to a better risk rating is used.
A specific allowance is established by CAF for those loans that
are considered impaired. A loan is considered as impaired when,
based on currently available information and events, there
exists the probability that CAF will not recover the total
amount of principal and interest as agreed in the terms of the
original loan contract. The impairment of loans is determined on
a loan by loan basis based on the present value of expected
future cash flows, discounted at the loans effective
interest rate.
Loan losses are charged against the allowance when management
believes the uncollectibility of a loan balance is confirmed.
Subsequent recoveries, if any, are credited to the allowance.
i. Property and Equipment -net Property
and equipment are stated at cost less accumulated depreciation.
Expenditures for maintenance and repairs are charged directly to
the statements of income for the year as incurred, and
improvements and renewals are capitalized. Depreciation is
computed on the straight-line method and charged to the
statements of income over the estimated useful life of assets.
During 2009, based on the expansion plans of operations
involving operating assets, CAFs management conducted an
analysis on the useful life assigned to such assets. In
connection with this review, it decided a prospective updating
of the useful life of certain assets, which caused an immaterial
increase in profits for the period.
The assets in conformity with their estimated useful life are as
follows:
|
|
|
|
|
|
|
2010 and 2009
|
|
2008
|
|
Buildings
|
|
30 years
|
|
15 years
|
Buildings improvements
|
|
15 years
|
|
5 years
|
Furniture and equipment
|
|
2 to 10 years
|
|
2 to 5 years
|
Vehicles
|
|
5 years
|
|
5 years
|
j. Intangible assets Intangible assets
are reported at cost less accumulated amortization. The
amortization is computed in accordance with the straight-line
method over the useful life estimated by CAF. The estimated
useful life of these assets is between 2 and 5 years.
k. Bonds and borrowings Medium and
long-term debt issuances, whose objective is to provide the
financial resources required to finance CAFs operations,
are recorded in bonds. The borrowings account includes those
obligations with local or foreign financial institutions and
commercial banks, which are commonly recorded at amortized cost.
Bonds are recorded as follows:
|
|
|
|
|
Bonds denominated in other currencies are recognized at their
fair value, as provided by
ASC 825-10-25
Fair Value Option. Gains or losses resulting from
changes in the fair value of these bonds are recognized in the
statement of income as they occur. CAF enters into cross
currency interest rate swaps as an economic hedge of the
interest rate and foreign exchange risks related to these bonds.
|
|
|
|
Bonds denominated in US$ are hedged for interest rate risk using
interest rate swaps, and are put into fair value hedge
accounting relationships assuming no hedge ineffectiveness (the
short cut method), as established in ASC
815-20-25-102.
|
F-13
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
Transactions related to partial repurchases of bond issuances
result in the derecognition of the related liabilities. The
difference between the repurchase price and the debts
settlement net cost is recognized as income/loss for the year.
l. Employees Severance Indemnities
Accrual for severance benefits comprises all the liabilities
related to the workers vested rights according to
CAFs employee policies and the Labor Law of the Bolivarian
Republic of Venezuela.
Under the current Labor Law, employees earn a severance
indemnity equal to five days of salary per month, up to a total
of 60 days per year of service. Labor indemnities are
earned once an employee has completed three (3) months of
continuous service. From the second year of service, the
employees earn an additional two days of salary for each year of
service (or fraction of a year greater than six months),
cumulative up to a maximum of 30 days of salary. Severance
benefits are recorded in the accounting records of CAF and
interest on the amounts owed to employees is paid.
In the case of unjustified dismissal or involuntary termination,
employees have the right to an additional indemnity of one-month
salary per year of service up to a maximum of 150 days.
m. Pension Plan CAF established in March
2005 a defined benefit pension plan which is mandatory for all
new employees as of the date of implementation of the Plan and
voluntary for all other employees. The plan is contributory and
the benefits are based on years of service and the
employees average salary for the three consecutive years
of service with the highest salary. These contributions are
reviewed on a periodic basis by CAF based on actuarial
assumptions.
n. Derivative Instruments and Hedging
Activities All derivatives are recognized on the
balance sheet at their fair value. On the date the derivative
contract is entered into, for which hedge accounting would be
applied, CAF designates the derivative as either a hedge of the
fair value of a recognized asset or liability or of an
unrecognized firm commitment (fair value hedge), a
hedge of a forecasted transaction or of the variability of cash
flows to be received or paid related to a recognized asset or
liability (cash flow hedge). CAF formally documents
all relationships between hedging instruments and hedged items,
as well as its risk-management objective and strategy for
undertaking various hedge transactions. This process includes
linking the derivatives that are designated as fair-value or
cash-flow hedges to specific assets and liabilities on the
balance sheet or to specific firm commitments or forecasted
transactions. CAF also formally assesses, both at the
hedges inception and on an ongoing basis, whether the
derivatives that are used in hedging transactions are highly
effective in offsetting changes in fair values or cash flows of
hedged items.
Changes in the fair value of a derivative that is highly
effective and that is designated and qualifies as a fair-value
hedge, along with the loss or gain on the hedged asset or
liability or unrecognized firm commitment of the hedged item
that is attributable to the hedged risk, are recorded in income.
Changes in the fair value of a derivative that is highly
effective and that is designated and qualifies as a cash-flow
hedge are recorded in other comprehensive income, until income
is affected by the variability in cash flows of the designated
hedged item.
CAF discontinues hedge accounting prospectively when it is
determined that the derivative is no longer effective in
offsetting changes in the fair value or cash flows of the hedged
item; the derivative expires or is sold, terminated, or
exercised; the derivative is de-designated as a hedging
instrument, because it is unlikely that a forecasted transaction
will occur; a hedged firm commitment no longer meets the
definition of a firm commitment; or management determines that
designation of the derivative as a hedging instrument is no
longer appropriate.
F-14
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
When hedge accounting is discontinued because it is determined
that the derivative no longer qualifies as an effective
fair-value hedge, CAF continues to carry the derivative on the
balance sheet at its fair value, and no longer adjusts the
hedged asset or liability for changes in fair value. The
adjustment of the carrying amount of the hedged asset or
liability is accounted for in the same manner as other
components of the carrying amount of that asset or liability.
When hedge accounting is discontinued because the hedged item no
longer meets the definition of a firm commitment, CAF continues
to carry the derivative on the balance sheet at its fair value,
removes any asset or liability that was recorded pursuant to
recognition of the firm commitment from the balance sheet and
recognizes any gain or loss in income. When hedge accounting is
discontinued because it is probable that a forecasted
transaction will not occur, CAF continues to carry the
derivative on the balance sheet at its fair value, and gains and
losses that were accumulated in other comprehensive income are
recognized immediately in income. In all situations in which
hedge accounting is discontinued, CAF continues to carry the
derivative at its fair value on the balance sheet, and
recognizes any changes in its fair value in income.
o. Guarantees CAF provides guarantees
for loans issued in support of projects located within a
shareholder country that are undertaken by public and private
entities. CAF may offer guarantees of private credit agreements
or it may offer public guarantees of obligations of the
securities of third party issuers. CAF generally offers partial
credit guarantees with the intention that private lenders or
holders of securities share the risk along with it. CAFs
responsibility is limited to payment up to the amount of the
guarantee upon default by the client. The guarantee fee income
received is deferred and recognized over the life of the
transaction.
|
|
|
|
|
Recent Applicable Accounting Pronouncements
Accounting Standards Update (ASU or Update)
2010-6,
Improving Disclosures about Fair Value
Measurements; ASU
2010-6
amends the disclosure requirements for fair value measurements.
Companies are now required to disclose significant transfers in
and out of Levels 1 and 2 of the fair value hierarchy,
whereas the previous rules only required the disclosure of
transfers in and out of Level 3. Additionally, in the roll
forward of Level 3 activity, companies must present
information on purchases, sales, issuances, and settlements on a
gross basis rather than on a net basis. The update also
clarifies that fair value measurement disclosures should be
presented for each class of assets and liabilities. A class is
typically a subset of a line item in the statement of financial
position. Companies should also provide information about the
valuation techniques and inputs used to measure fair value for
both recurring and nonrecurring instruments classified as either
Level 2 or Level 3. We adopted this guidance in the
first quarter of 2010, except for the new requirement related to
the Level 3 roll forward. Gross presentation in the
Level 3 roll forward is effective in the first quarter of
2011 with prospective application.
|
Disclosures about the credit quality of financing receivables
and the allowance for credit losses In July
2010, the FASB issued guidance that will require enhanced
disclosures surrounding the credit characteristics of CAFs
loan portfolio. Under the new guidance, CAF will be required to
disclose its accounting policies, the methods it uses to
determine the components of the allowance for credit losses, and
qualitative and quantitative information about the credit risk
inherent in the loan portfolio, including additional information
on certain types of loan modifications. This statement has not
affected CAFs financial results.
F-15
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
Deposits with banks mature in three months or less and include
the following:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
U.S. dollars
|
|
|
1,403,230
|
|
|
|
1,236,045
|
|
Other currencies
|
|
|
213
|
|
|
|
1,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,403,443
|
|
|
|
1,237,863
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2010 and 2009, deposits due in
90 days or more are reported in the balance sheets as other
investments.
Trading
Securities
A summary of trading securities follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
|
|
|
|
|
|
|
maturity
|
|
|
|
|
|
maturity
|
|
|
|
Amount
|
|
|
(years)
|
|
|
Amount
|
|
|
(years)
|
|
|
U.S. Treasury Notes
|
|
|
45,011
|
|
|
|
1.77
|
|
|
|
36,046
|
|
|
|
0.89
|
|
Bonds of
non-U.S.
governments and government entities
|
|
|
258,673
|
|
|
|
2.23
|
|
|
|
43,382
|
|
|
|
3.47
|
|
Financial institutions and corporate securities:
|
|
|
2,153,061
|
|
|
|
0.46
|
|
|
|
2,134,826
|
|
|
|
0.73
|
|
Commercial paper
|
|
|
882,529
|
|
|
|
|
|
|
|
1,049,059
|
|
|
|
|
|
Certificates of deposit
|
|
|
340,711
|
|
|
|
|
|
|
|
351,959
|
|
|
|
|
|
Bonds
|
|
|
666,388
|
|
|
|
|
|
|
|
499,595
|
|
|
|
|
|
Others
|
|
|
263,433
|
|
|
|
|
|
|
|
234,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,456,745
|
|
|
|
0.68
|
|
|
|
2,214,254
|
|
|
|
0.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading securities include net unrealized losses of US$4,209,
US$2,924 and US$10,955 at December 31, 2010, 2009 and 2008,
respectively.
Net realized gains from trading securities of US$11,781,
US$26,542 and US$19,911 at December 31, 2010, 2009 and
2008, respectively, are included in the statement of income in
the line Investment and deposits with banks.
CAF places its short-term investments in several financial
institutions and limits the amount of credit risk. As of
December 31, 2010 and 2009, CAF does not have any
significant concentrations of credit risk. Total marketable
securities include US$95,485 and US$17,165, at December 31,
2010 and 2009, respectively, in other currencies.
F-16
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
Loans include short, medium and long-term loans to finance
projects, working capital and trade activities. The majority of
the loan contracts have been subscribed with the Series
A and B Shareholder countries, or with
private institutions or companies of these countries.
Loans by shareholder country are summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
Shareholder country
|
|
2010
|
|
|
2009
|
|
|
Argentina
|
|
|
1,395,137
|
|
|
|
1,156,848
|
|
Bolivia
|
|
|
1,301,123
|
|
|
|
1,157,668
|
|
Brazil
|
|
|
1,115,992
|
|
|
|
1,033,705
|
|
Colombia
|
|
|
1,965,880
|
|
|
|
1,688,710
|
|
Costa Rica
|
|
|
152,388
|
|
|
|
151,513
|
|
Dominican Republic
|
|
|
119,722
|
|
|
|
75,000
|
|
Ecuador
|
|
|
2,436,631
|
|
|
|
2,051,732
|
|
Mexico
|
|
|
19,466
|
|
|
|
|
|
Panama
|
|
|
139,604
|
|
|
|
126,121
|
|
Paraguay
|
|
|
66,049
|
|
|
|
27,687
|
|
Peru
|
|
|
2,181,681
|
|
|
|
1,864,529
|
|
Uruguay
|
|
|
656,678
|
|
|
|
581,510
|
|
Venezuela
|
|
|
2,227,613
|
|
|
|
1,765,088
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
13,777,964
|
|
|
|
11,680,111
|
|
Fair value adjustments
|
|
|
5,079
|
|
|
|
6,578
|
|
|
|
|
|
|
|
|
|
|
Carrying value of loans
|
|
|
13,783,043
|
|
|
|
11,686,689
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustments to the carrying value of loans represent
adjustments to the carrying value of transactions in designated
fair value.
At December 31, 2010 and 2009, loans in other currencies
were granted for an equivalent of US$34,506 and US$35,771,
respectively, principally in Peruvian Nuevos Soles and Colombian
Pesos. At December 31, 2010 and 2009, loans include fixed
interest rate loans of US$38,286 and US$72,097, respectively.
Loans classified by public sector and private sector borrowers
are as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Public Sector
|
|
|
11,050,387
|
|
|
|
9,324,379
|
|
Private Sector
|
|
|
2,727,577
|
|
|
|
2,355,732
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
13,777,964
|
|
|
|
11,680,111
|
|
Fair value adjustments
|
|
|
5,079
|
|
|
|
6,578
|
|
|
|
|
|
|
|
|
|
|
Carrying value of loans
|
|
|
13,783,043
|
|
|
|
11,686,689
|
|
|
|
|
|
|
|
|
|
|
F-17
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
The loan portfolio composition and average yield of loans
disbursed and outstanding are summarized below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
2010
|
|
2009
|
|
|
|
|
Average
|
|
|
|
Average
|
|
|
Amount
|
|
yield (%)
|
|
Amount
|
|
yield (%)
|
|
Loans
|
|
|
13,777,964
|
|
|
|
2.44
|
|
|
|
11,680,111
|
|
|
|
2.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans by industry segments are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
%
|
|
|
2009
|
|
|
%
|
|
|
Agriculture, hunting and forestry
|
|
|
40,454
|
|
|
|
0
|
|
|
|
78,116
|
|
|
|
1
|
|
Exploitation of mines and quarries
|
|
|
66,000
|
|
|
|
1
|
|
|
|
43,000
|
|
|
|
1
|
|
Manufacturing industry
|
|
|
199,896
|
|
|
|
1
|
|
|
|
261,378
|
|
|
|
2
|
|
Supply of electricity, gas and water
|
|
|
4,089,458
|
|
|
|
30
|
|
|
|
2,960,953
|
|
|
|
25
|
|
Transport, warehousing and communications
|
|
|
4,362,460
|
|
|
|
32
|
|
|
|
3,660,135
|
|
|
|
31
|
|
Commercial banks
|
|
|
1,698,488
|
|
|
|
12
|
|
|
|
1,500,080
|
|
|
|
13
|
|
Development banks
|
|
|
253,993
|
|
|
|
2
|
|
|
|
138,465
|
|
|
|
1
|
|
Social and other infrastructure programs
|
|
|
3,067,215
|
|
|
|
22
|
|
|
|
3,031,127
|
|
|
|
26
|
|
Other activities
|
|
|
|
|
|
|
|
|
|
|
6,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,777,964
|
|
|
|
100
|
|
|
|
11,680,111
|
|
|
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans mature as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Remaining maturities
|
|
|
|
|
|
|
|
|
Less than one year
|
|
|
2,328,806
|
|
|
|
2,277,403
|
|
Between one and two years
|
|
|
1,635,890
|
|
|
|
1,088,676
|
|
Between two and three years
|
|
|
1,377,283
|
|
|
|
1,126,905
|
|
Between three and four years
|
|
|
1,240,399
|
|
|
|
1,078,578
|
|
Between four and five years
|
|
|
1,102,446
|
|
|
|
943,399
|
|
Over five years
|
|
|
6,093,140
|
|
|
|
5,165,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,777,964
|
|
|
|
11,680,111
|
|
|
|
|
|
|
|
|
|
|
F-18
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
Loan
Portfolio Quality
The loan portfolio quality indicators for both years are
presented below:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Overdue loans
|
|
|
0
|
|
|
|
0
|
|
Nonaccrual loans
|
|
|
0
|
|
|
|
0
|
|
Impaired Loans
|
|
|
0
|
|
|
|
0
|
|
Overdue loan principal as a percentage of loan portfolio
|
|
|
0
|
%
|
|
|
0
|
%
|
Nonaccrual loans as a percentage of loan portfolio
|
|
|
0
|
%
|
|
|
0
|
%
|
Allowance for losses as a percentage of loan portfolio
|
|
|
1.03
|
%
|
|
|
1.23
|
%
|
Purchase
of loan portfolio
During 2009, CAF carried out operations related to the purchase
of loans for the amount of US$65,000. During 2010, CAF did not
conduct this type of operations.
Sale of
loan portfolio
During 2008, CAF received funds from commercial banks amounting
to US$50,000, for loans which were sold by CAF to the banks
without recourse. These participations are administered by CAF
on behalf of the participants.
A/B
Loans
CAF administers loan participations provided to clients, and
assumes the credit risk only for that portion of the loan owned
by CAF. At December 31, 2010, 2009 and 2008, CAF
administered loans of this nature whereby other financial
institutions provided funds amounting to US$1,002,034,
US$898,910 and US$450,000, respectively.
Allowance
for Loan Losses
Movements of the allowance for loan losses follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
Balances at beginning of year
|
|
|
143,911
|
|
|
|
143,167
|
|
|
|
168,257
|
|
Credit to results of operations
|
|
|
(2,990
|
)
|
|
|
(1,656
|
)
|
|
|
(22,970
|
)
|
Recoveries
|
|
|
443
|
|
|
|
2,400
|
|
|
|
1,880
|
|
Loans charged-off
|
|
|
|
|
|
|
|
|
|
|
(4,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at end of year
|
|
|
141,364
|
|
|
|
143,911
|
|
|
|
143,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-19
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
Equity investments, which have no market value, are as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Direct investments in companies accounted under equity method
|
|
|
30,466
|
|
|
|
31,077
|
|
Investment funds accounted under equity method
|
|
|
23,034
|
|
|
|
27,566
|
|
Direct investments in companies at cost
|
|
|
9,674
|
|
|
|
9,674
|
|
Investment funds at cost
|
|
|
31,547
|
|
|
|
17,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
94,721
|
|
|
|
85,482
|
|
|
|
|
|
|
|
|
|
|
|
|
6.
|
Property
and Equipment Net
|
A summary of property and equipment follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Land
|
|
|
16,650
|
|
|
|
16,650
|
|
Buildings
|
|
|
20,412
|
|
|
|
20,412
|
|
Buildings improvements
|
|
|
17,058
|
|
|
|
15,010
|
|
Furniture and equipment
|
|
|
13,641
|
|
|
|
11,842
|
|
Vehicles
|
|
|
752
|
|
|
|
472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
68,513
|
|
|
|
64,386
|
|
Less accumulated depreciation
|
|
|
38,612
|
|
|
|
36,312
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29,901
|
|
|
|
28,074
|
|
|
|
|
|
|
|
|
|
|
The depreciation expenses of US$2,224, US$1,659 and US$3,094 for
property and equipment at December 31, 2010, 2009 and 2008,
respectively, are included in the statement of income.
A summary of other assets follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Intangible assets, net
|
|
|
7,858
|
|
|
|
6,024
|
|
Deferred charges, net
|
|
|
26,280
|
|
|
|
19,701
|
|
Other assets
|
|
|
4,603
|
|
|
|
3,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39,281
|
|
|
|
29,026
|
|
|
|
|
|
|
|
|
|
|
CAFs deposits of US$2,739,497 at December 31, 2010
mature in 2011 (US$2,650,706 at December 31,
2009 matured in 2010). At December 31, 2010 and
2009, the interest rates on deposits ranged from 0.01% to 1.35%
and from 0.10% to 2.06%, respectively. Total deposits include
US$136,180 and US$27,460 at December 31, 2010 and 2009,
respectively, in other currencies.
F-20
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
CAFs commercial paper of US$1,524,285 at December 31,
2010 matures in 2011 (US$1,265,417 at December 31,
2009 matured in 2010). At December 31, 2010 and
2009, the interest rates on commercial paper ranged from 0.26%
to 1.16% and from 0.12% to 1.89%, respectively.
An analysis of bonds follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
|
|
Weighted
|
|
|
|
Principal outstanding
|
|
|
average
|
|
|
Principal outstanding
|
|
|
average
|
|
|
|
At original
|
|
|
At spot
|
|
|
cost, after
|
|
|
At original
|
|
|
At spot
|
|
|
cost, after
|
|
|
|
exchange
|
|
|
exchange
|
|
|
swaps (%)
|
|
|
exchange
|
|
|
exchange
|
|
|
swaps (%)
|
|
|
|
rate
|
|
|
rate
|
|
|
(Year-end)
|
|
|
rate
|
|
|
rate
|
|
|
(Year-end)
|
|
|
U.S. dollars
|
|
|
4,300,007
|
|
|
|
4,300,007
|
|
|
|
2.42
|
|
|
|
3,427,798
|
|
|
|
3,427,798
|
|
|
|
2.79
|
|
Euros
|
|
|
1,043,647
|
|
|
|
1,046,260
|
|
|
|
1.86
|
|
|
|
369,357
|
|
|
|
412,268
|
|
|
|
0.92
|
|
Yen
|
|
|
417,384
|
|
|
|
483,554
|
|
|
|
2.40
|
|
|
|
448,359
|
|
|
|
540,272
|
|
|
|
1.73
|
|
Colombian Pesos
|
|
|
205,352
|
|
|
|
243,221
|
|
|
|
3.38
|
|
|
|
305,353
|
|
|
|
369,563
|
|
|
|
2.37
|
|
Venezuelan Bolivars
|
|
|
209,302
|
|
|
|
104,651
|
|
|
|
(0.63
|
)
|
|
|
209,302
|
|
|
|
209,302
|
|
|
|
(0.53
|
)
|
Swiss Francs
|
|
|
455,616
|
|
|
|
478,062
|
|
|
|
2.30
|
|
|
|
193,836
|
|
|
|
192,456
|
|
|
|
2.64
|
|
Mexican Pesos
|
|
|
68,807
|
|
|
|
60,618
|
|
|
|
1.14
|
|
|
|
145,223
|
|
|
|
119,002
|
|
|
|
1.16
|
|
Peruvian Nuevos Soles
|
|
|
125,748
|
|
|
|
139,882
|
|
|
|
1.21
|
|
|
|
125,748
|
|
|
|
135,795
|
|
|
|
1.43
|
|
Pounds Sterling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63,440
|
|
|
|
64,993
|
|
|
|
3.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,825,863
|
|
|
|
6,856,255
|
|
|
|
|
|
|
|
5,288,416
|
|
|
|
5,471,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustments
|
|
|
|
|
|
|
356,557
|
|
|
|
|
|
|
|
|
|
|
|
227,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying value of bonds
|
|
|
|
|
|
|
7,212,812
|
|
|
|
|
|
|
|
|
|
|
|
5,699,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A summary of the bonds issued, by remaining maturities, follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Remaining maturities
|
|
|
|
|
|
|
|
|
Less than one year
|
|
|
767,225
|
|
|
|
447,047
|
|
Between one and two years
|
|
|
738,123
|
|
|
|
767,904
|
|
Between two and three years
|
|
|
748,476
|
|
|
|
739,021
|
|
Between three and four years
|
|
|
498,119
|
|
|
|
749,421
|
|
Between four and five years
|
|
|
698,107
|
|
|
|
204,074
|
|
Over five years
|
|
|
3,375,813
|
|
|
|
2,380,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,825,863
|
|
|
|
5,288,416
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2010 and 2009, fixed interest rate bonds
amounted to US$5,906,811 and US$4,426,606, respectively, of
which US$1,742,141 and US$935,936, respectively, are denominated
in Yen, Euros, Pounds Sterling, Swiss Francs, Colombian Pesos
and Peruvian Nuevos Soles.
F-21
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
|
|
11.
|
Borrowings
and Other Obligations
|
An analysis of borrowings and other obligations and their
weighted average cost follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
|
|
Weighted
|
|
|
|
Principal outstanding
|
|
|
average
|
|
|
Principal outstanding
|
|
|
average
|
|
|
|
At original
|
|
|
At spot
|
|
|
cost, after
|
|
|
At original
|
|
|
At spot
|
|
|
cost, after
|
|
|
|
exchange
|
|
|
exchange
|
|
|
swaps (%)
|
|
|
exchange
|
|
|
exchange
|
|
|
swaps (%)
|
|
|
|
rate
|
|
|
rate
|
|
|
(Year-end)
|
|
|
rate
|
|
|
rate
|
|
|
(Year-end)
|
|
|
U.S. dollars
|
|
|
977,147
|
|
|
|
977,147
|
|
|
|
1.06
|
|
|
|
775,360
|
|
|
|
775,360
|
|
|
|
0.98
|
|
Peruvian Nuevos Soles (at spot rate)
|
|
|
10,575
|
|
|
|
10,575
|
|
|
|
|
|
|
|
13,891
|
|
|
|
13,891
|
|
|
|
|
|
Other currencies (at spot rate)
|
|
|
3,057
|
|
|
|
3,057
|
|
|
|
|
|
|
|
1,661
|
|
|
|
1,661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
990,779
|
|
|
|
990,779
|
|
|
|
|
|
|
|
790,912
|
|
|
|
790,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustments
|
|
|
|
|
|
|
7,310
|
|
|
|
|
|
|
|
|
|
|
|
(2,445
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying value of borrowings and other obligations
|
|
|
|
|
|
|
998,089
|
|
|
|
|
|
|
|
|
|
|
|
788,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2010 and 2009, there are fixed
interest-bearing borrowings and other obligations amounting to
US$155,113 and US$20,582, respectively.
Borrowings and other obligations, by remaining maturities, are
summarized below:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Remaining maturities
|
|
|
|
|
|
|
|
|
Less than one year
|
|
|
143.618
|
|
|
|
128,936
|
|
Between one and two years
|
|
|
130,822
|
|
|
|
142,046
|
|
Between two and three years
|
|
|
148,869
|
|
|
|
108,598
|
|
Between three and four years
|
|
|
233,505
|
|
|
|
90,593
|
|
Between four and five years
|
|
|
107,590
|
|
|
|
56,832
|
|
Over five years
|
|
|
226,375
|
|
|
|
263,907
|
|
|
|
|
|
|
|
|
|
|
|
|
|
990,779
|
|
|
|
790,912
|
|
|
|
|
|
|
|
|
|
|
Some borrowing agreements contain covenants conditioning the use
of the funds for specific purposes or projects.
At December 31, 2010 and 2009, there were unused term
credit facilities amounting to US$172,000 and US$117,300,
respectively.
F-22
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
|
|
12.
|
Accrued
Expenses and Other Liabilities
|
A summary of accrued expenses and other liabilities follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Employees severance indemnities, benefits and savings plan
|
|
|
54,317
|
|
|
|
48,139
|
|
Other liabilities
|
|
|
11,800
|
|
|
|
5,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66,117
|
|
|
|
53,227
|
|
|
|
|
|
|
|
|
|
|
CAF established in March 2005 a defined benefit pension plan
(the Plan), which is mandatory for all new employees as of the
date of implementation of the Plan and voluntary for all other
employees. The Plan is contributory and the benefits are based
on years of service and the average employees salary for
the three consecutive years of service with the highest salary.
The employees make monthly contributions to the Plan equal to 7%
of their salary. All contributions are made in cash. Voluntary
participants must contribute to the Plan certain withheld
benefits. At December 31, 2010, the Plan had 218
participants.
The measurement date used to determine pension plan benefits is
December 31.
The Plans benefit obligation (PBO) and assets as of
December 31, 2010 and 2009 follow:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
2010
|
|
2009
|
|
Plans benefit obligation (PBO)
|
|
|
3,388
|
|
|
|
2,060
|
|
Plan assets
|
|
|
3,121
|
|
|
|
2,060
|
|
Unrecognized actuarial losses, net
|
|
|
267
|
|
|
|
|
|
As of December 31, 2010 and 2009, the PBOs net assets
are as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Net assets:
|
|
|
|
|
|
|
|
|
Cash
|
|
|
|
|
|
|
85
|
|
Deposit with banks
|
|
|
3,121
|
|
|
|
1,973
|
|
Accrued interest
|
|
|
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,121
|
|
|
|
2,060
|
|
|
|
|
|
|
|
|
|
|
The table below summarizes the evolution of the periodic cost of
projected benefits related to the PBO for the years ended
December 31, 2010 and 2009:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Service cost
|
|
|
574
|
|
|
|
447
|
|
Interest cost
|
|
|
35
|
|
|
|
33
|
|
Expected return on plan assets
|
|
|
(35
|
)
|
|
|
(33
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
574
|
|
|
|
447
|
|
|
|
|
|
|
|
|
|
|
F-23
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
A summary of the net projected cost for the year 2011 follows:
|
|
|
|
|
|
|
2011
|
|
|
Service cost:
|
|
|
|
|
Contributions to the plan
|
|
|
642
|
|
Guaranteed benefit
|
|
|
76
|
|
|
|
|
718
|
|
|
|
|
|
|
Interest cost
|
|
|
148
|
|
Expected return on plan assets
|
|
|
(137
|
)
|
|
|
|
729
|
|
|
|
|
|
|
Weighted-average assumptions used to determine net benefit cost
since the origination of the Plan to December 31, 2010 and
2009 are as follows:
|
|
|
|
|
Discount rate
|
|
|
4
|
%
|
Expected long-term rate of return on Plan assets
|
|
|
4
|
%
|
Rate of salary increase
|
|
|
3
|
%
|
Authorized
Capital
The authorized capital of CAF at December 31, 2010, 2009
and 2008, amounts to US$10,000,000, respectively, distributed
among Series A, B and C
shares.
Subscribed
Callable Capital
The payment of subscribed callable capital will be as required,
with prior approval of the Board of Directors, in order to meet
financial obligations of CAF, when internal resources are
inadequate.
Shares
CAFs shares are classified as follows:
Series A shares: Subscribed by the
governments or public-sector institutions, semipublic or private
entities with social or public objectives of: Bolivia, Brazil,
Colombia, Ecuador, Panama, Peru, Uruguay and Venezuela. These
shares grant the right of representation on CAFs Board of
Directors of one principal director and one alternate director
per share. Series A shares have a par value of
US$1,200.
Series B shares: Subscribed by the
governments or public-sector institutions, semipublic or private
entities and commercial banks of: Bolivia, Brazil, Colombia,
Ecuador, Panama, Peru, Uruguay and Venezuela. These shares grant
the right of representation on CAFs Board of Directors of
one principal director and one alternate director for each of
the following countries: Bolivia, Colombia, Ecuador, Peru and
Venezuela. Also, the commercial banks that currently hold shares
of CAF are entitled altogether to one principal director and one
alternate director on the Board of Directors. Series
B shares have a par value of US$5.
Series C shares: Subscribed by
legal entities or individuals belonging to countries other than
Bolivia, Brazil, Colombia, Ecuador, Panama, Peru, Uruguay and
Venezuela. These shares provide for
F-24
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
representation on the Board of Directors of CAF of two principal
directors and their respective alternates, who are elected by
the holders of these shares. Series C shares have a
par value of US$5.
A summary of the movement in subscribed and paid-in capital for
the years ended December 31, 2010, 2009 and 2008, follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Shares
|
|
|
Amounts
|
|
|
|
Series A
|
|
|
Series B
|
|
|
Series C
|
|
|
Series A
|
|
|
Series B
|
|
|
Series C
|
|
|
Total
|
|
|
At December 31, 2007
|
|
|
5
|
|
|
|
351,546
|
|
|
|
50,204
|
|
|
|
6.000
|
|
|
|
1,757,730
|
|
|
|
251,020
|
|
|
|
2,014,750
|
|
Dividends in shares
|
|
|
|
|
|
|
14,103
|
|
|
|
2,001
|
|
|
|
|
|
|
|
70,515
|
|
|
|
10,005
|
|
|
|
80,520
|
|
Issued for cash
|
|
|
|
|
|
|
622
|
|
|
|
15,610
|
|
|
|
|
|
|
|
3,110
|
|
|
|
78,050
|
|
|
|
81,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2008
|
|
|
5
|
|
|
|
366,271
|
|
|
|
67,815
|
|
|
|
6,000
|
|
|
|
1,831,355
|
|
|
|
339,075
|
|
|
|
2,176,430
|
|
Dividends in shares
|
|
|
|
|
|
|
15,972
|
|
|
|
4,044
|
|
|
|
|
|
|
|
79,860
|
|
|
|
20,220
|
|
|
|
100,080
|
|
Issued for cash
|
|
|
|
|
|
|
583
|
|
|
|
41,244
|
|
|
|
|
|
|
|
2,915
|
|
|
|
206,220
|
|
|
|
209,135
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2009
|
|
|
5
|
|
|
|
382,826
|
|
|
|
113,103
|
|
|
|
6,000
|
|
|
|
1,914,130
|
|
|
|
565,515
|
|
|
|
2,485,645
|
|
Dividends in shares
|
|
|
|
|
|
|
30,403
|
|
|
|
5,089
|
|
|
|
|
|
|
|
152,015
|
|
|
|
25,445
|
|
|
|
177,460
|
|
Exchanged shares
|
|
|
|
|
|
|
50,695
|
|
|
|
(50,695
|
)
|
|
|
|
|
|
|
253,475
|
|
|
|
(253,475
|
)
|
|
|
|
|
Issued for cash
|
|
|
3
|
|
|
|
12,858
|
|
|
|
16,589
|
|
|
|
3,600
|
|
|
|
64,290
|
|
|
|
82,945
|
|
|
|
150,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2010
|
|
|
8
|
|
|
|
476,782
|
|
|
|
84,086
|
|
|
|
9,600
|
|
|
|
2,383,910
|
|
|
|
420,430
|
|
|
|
2,813,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscribed and paid-in capital is held as follows at
December 31, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Shares
|
|
|
Amounts
|
|
Stockholder
|
|
Series A
|
|
|
Series B
|
|
|
Series C
|
|
|
Series A
|
|
|
Series B
|
|
|
Series C
|
|
|
Total
|
|
|
Bolivia
|
|
|
1
|
|
|
|
32,652
|
|
|
|
|
|
|
|
1,200
|
|
|
|
163,260
|
|
|
|
|
|
|
|
164,460
|
|
Brazil
|
|
|
1
|
|
|
|
39,888
|
|
|
|
|
|
|
|
1,200
|
|
|
|
199,440
|
|
|
|
|
|
|
|
200,640
|
|
Colombia
|
|
|
1
|
|
|
|
116,123
|
|
|
|
|
|
|
|
1,200
|
|
|
|
580,615
|
|
|
|
|
|
|
|
581,815
|
|
Ecuador
|
|
|
1
|
|
|
|
32,914
|
|
|
|
|
|
|
|
1,200
|
|
|
|
164,570
|
|
|
|
|
|
|
|
165,770
|
|
Panama
|
|
|
1
|
|
|
|
8,912
|
|
|
|
|
|
|
|
1,200
|
|
|
|
44,560
|
|
|
|
|
|
|
|
45,760
|
|
Peru
|
|
|
1
|
|
|
|
116,367
|
|
|
|
|
|
|
|
1,200
|
|
|
|
581,835
|
|
|
|
|
|
|
|
583,035
|
|
Uruguay
|
|
|
1
|
|
|
|
13,232
|
|
|
|
|
|
|
|
1,200
|
|
|
|
66,160
|
|
|
|
|
|
|
|
67,360
|
|
Venezuela
|
|
|
1
|
|
|
|
116,365
|
|
|
|
|
|
|
|
1,200
|
|
|
|
581,825
|
|
|
|
|
|
|
|
583,025
|
|
Argentina
|
|
|
|
|
|
|
|
|
|
|
44,542
|
|
|
|
|
|
|
|
|
|
|
|
222,710
|
|
|
|
222,710
|
|
Chile
|
|
|
|
|
|
|
|
|
|
|
4,779
|
|
|
|
|
|
|
|
|
|
|
|
23,895
|
|
|
|
23,895
|
|
Costa Rica
|
|
|
|
|
|
|
|
|
|
|
2,838
|
|
|
|
|
|
|
|
|
|
|
|
14,190
|
|
|
|
14,190
|
|
Dominican Republic
|
|
|
|
|
|
|
|
|
|
|
5,034
|
|
|
|
|
|
|
|
|
|
|
|
25,170
|
|
|
|
25,170
|
|
Jamaica
|
|
|
|
|
|
|
|
|
|
|
157
|
|
|
|
|
|
|
|
|
|
|
|
785
|
|
|
|
785
|
|
Mexico
|
|
|
|
|
|
|
|
|
|
|
4,067
|
|
|
|
|
|
|
|
|
|
|
|
20,335
|
|
|
|
20,335
|
|
Paraguay
|
|
|
|
|
|
|
|
|
|
|
4,124
|
|
|
|
|
|
|
|
|
|
|
|
20,620
|
|
|
|
20,620
|
|
Spain
|
|
|
|
|
|
|
|
|
|
|
18,076
|
|
|
|
|
|
|
|
|
|
|
|
90,380
|
|
|
|
90,380
|
|
Trinidad & Tobago
|
|
|
|
|
|
|
|
|
|
|
469
|
|
|
|
|
|
|
|
|
|
|
|
2,345
|
|
|
|
2,345
|
|
Commercial Banks
|
|
|
|
|
|
|
329
|
|
|
|
|
|
|
|
|
|
|
|
1,645
|
|
|
|
|
|
|
|
1,645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
|
|
|
|
476,782
|
|
|
|
84,086
|
|
|
|
9,600
|
|
|
|
2,383,910
|
|
|
|
420,430
|
|
|
|
2,813,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-25
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
At December 31, 2010, the distribution of unpaid subscribed
capital and of subscribed callable capital is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid Subscribed Capital
|
|
|
Subscribed Callable Capital
|
|
|
|
Series B
|
|
|
Series C
|
|
|
Series B
|
|
|
Series C
|
|
|
|
Number of
|
|
|
|
|
|
Number of
|
|
|
|
|
|
Number of
|
|
|
|
|
|
Number of
|
|
|
|
|
Stockholder
|
|
shares
|
|
|
Amount
|
|
|
shares
|
|
|
Amount
|
|
|
shares
|
|
|
Amount
|
|
|
shares
|
|
|
Amount
|
|
|
Bolivia
|
|
|
7,042
|
|
|
|
35,120
|
|
|
|
|
|
|
|
|
|
|
|
14,400
|
|
|
|
72,000
|
|
|
|
|
|
|
|
|
|
Brazil
|
|
|
11,314
|
|
|
|
56,570
|
|
|
|
|
|
|
|
|
|
|
|
25,200
|
|
|
|
126,000
|
|
|
|
|
|
|
|
|
|
Colombia
|
|
|
10,421
|
|
|
|
52,105
|
|
|
|
|
|
|
|
|
|
|
|
50,400
|
|
|
|
252,000
|
|
|
|
|
|
|
|
|
|
Ecuador
|
|
|
7,042
|
|
|
|
35,210
|
|
|
|
|
|
|
|
|
|
|
|
14,400
|
|
|
|
72,000
|
|
|
|
|
|
|
|
|
|
Panama
|
|
|
9,880
|
|
|
|
49,400
|
|
|
|
|
|
|
|
|
|
|
|
7,200
|
|
|
|
36,000
|
|
|
|
|
|
|
|
|
|
Peru
|
|
|
25,352
|
|
|
|
126,760
|
|
|
|
|
|
|
|
|
|
|
|
50,400
|
|
|
|
252,000
|
|
|
|
|
|
|
|
|
|
Uruguay
|
|
|
6,070
|
|
|
|
30,350
|
|
|
|
|
|
|
|
|
|
|
|
7,200
|
|
|
|
36,000
|
|
|
|
|
|
|
|
|
|
Venezuela
|
|
|
25,352
|
|
|
|
126,760
|
|
|
|
|
|
|
|
|
|
|
|
50,400
|
|
|
|
252,000
|
|
|
|
|
|
|
|
|
|
Argentina
|
|
|
|
|
|
|
|
|
|
|
9,318
|
|
|
|
46,590
|
|
|
|
|
|
|
|
|
|
|
|
25,200
|
|
|
|
126,000
|
|
Chile
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
800
|
|
|
|
4,000
|
|
Mexico
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,600
|
|
|
|
8,000
|
|
Paraguay
|
|
|
|
|
|
|
|
|
|
|
10,883
|
|
|
|
54,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spain
|
|
|
|
|
|
|
|
|
|
|
18,422
|
|
|
|
92,110
|
|
|
|
|
|
|
|
|
|
|
|
40,000
|
|
|
|
200,000
|
|
Trinidad & Tobago
|
|
|
|
|
|
|
|
|
|
|
142
|
|
|
|
710
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Banks
|
|
|
4
|
|
|
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
102,477
|
|
|
|
512,385
|
|
|
|
38,765
|
|
|
|
193,825
|
|
|
|
219,600
|
|
|
|
1,098,000
|
|
|
|
67,600
|
|
|
|
338,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscribed and paid-in capital is held as follows at
December 31, 2009:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Shares
|
|
|
Amounts
|
|
Stockholder
|
|
Series A
|
|
|
Series B
|
|
|
Series C
|
|
|
Series A
|
|
|
Series B
|
|
|
Series C
|
|
|
Total
|
|
|
Bolivia
|
|
|
1
|
|
|
|
30,131
|
|
|
|
|
|
|
|
1,200
|
|
|
|
150,655
|
|
|
|
|
|
|
|
151,855
|
|
Colombia
|
|
|
1
|
|
|
|
107,453
|
|
|
|
|
|
|
|
1,200
|
|
|
|
537,265
|
|
|
|
|
|
|
|
538,465
|
|
Ecuador
|
|
|
1
|
|
|
|
30,377
|
|
|
|
|
|
|
|
1,200
|
|
|
|
151,885
|
|
|
|
|
|
|
|
153,085
|
|
Peru
|
|
|
1
|
|
|
|
107,280
|
|
|
|
|
|
|
|
1,200
|
|
|
|
536,400
|
|
|
|
|
|
|
|
537,600
|
|
Venezuela
|
|
|
1
|
|
|
|
107,278
|
|
|
|
|
|
|
|
1,200
|
|
|
|
536,390
|
|
|
|
|
|
|
|
537,590
|
|
Argentina
|
|
|
|
|
|
|
|
|
|
|
34,149
|
|
|
|
|
|
|
|
|
|
|
|
170,745
|
|
|
|
170,745
|
|
Brazil
|
|
|
|
|
|
|
|
|
|
|
31,341
|
|
|
|
|
|
|
|
|
|
|
|
156,705
|
|
|
|
156,705
|
|
Chile
|
|
|
|
|
|
|
|
|
|
|
4,461
|
|
|
|
|
|
|
|
|
|
|
|
22,305
|
|
|
|
22,305
|
|
Costa Rica
|
|
|
|
|
|
|
|
|
|
|
2,649
|
|
|
|
|
|
|
|
|
|
|
|
13,245
|
|
|
|
13,245
|
|
Dominican Republic
|
|
|
|
|
|
|
|
|
|
|
4,699
|
|
|
|
|
|
|
|
|
|
|
|
23,495
|
|
|
|
23,495
|
|
Jamaica
|
|
|
|
|
|
|
|
|
|
|
147
|
|
|
|
|
|
|
|
|
|
|
|
735
|
|
|
|
735
|
|
Mexico
|
|
|
|
|
|
|
|
|
|
|
3,796
|
|
|
|
|
|
|
|
|
|
|
|
18,980
|
|
|
|
18,980
|
|
Panama
|
|
|
|
|
|
|
|
|
|
|
6,009
|
|
|
|
|
|
|
|
|
|
|
|
30,045
|
|
|
|
30,045
|
|
Paraguay
|
|
|
|
|
|
|
|
|
|
|
2,531
|
|
|
|
|
|
|
|
|
|
|
|
12,655
|
|
|
|
12,655
|
|
Spain
|
|
|
|
|
|
|
|
|
|
|
12,572
|
|
|
|
|
|
|
|
|
|
|
|
62.860
|
|
|
|
62,860
|
|
Trinidad & Tobago
|
|
|
|
|
|
|
|
|
|
|
307
|
|
|
|
|
|
|
|
|
|
|
|
1,535
|
|
|
|
1,535
|
|
Uruguay
|
|
|
|
|
|
|
|
|
|
|
10,442
|
|
|
|
|
|
|
|
|
|
|
|
52,210
|
|
|
|
52,210
|
|
Commercial banks
|
|
|
|
|
|
|
307
|
|
|
|
|
|
|
|
|
|
|
|
1,535
|
|
|
|
|
|
|
|
1,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
382,826
|
|
|
|
113,103
|
|
|
|
6,000
|
|
|
|
1,914,130
|
|
|
|
565,515
|
|
|
|
2,485,645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-26
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
At December 31, 2009, the distribution of unpaid subscribed
capital and of subscribed callable capital is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid Subscribed Capital
|
|
|
Subscribed Callable Capital
|
|
|
|
Series B
|
|
|
Series C
|
|
|
Series B
|
|
|
Series C
|
|
|
|
Number of
|
|
|
|
|
|
Number of
|
|
|
|
|
|
Number of
|
|
|
|
|
|
Number of
|
|
|
|
|
Stockholder
|
|
shares
|
|
|
Amount
|
|
|
shares
|
|
|
Amount
|
|
|
shares
|
|
|
Amount
|
|
|
shares
|
|
|
Amount
|
|
|
Bolivia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,400
|
|
|
|
72,000
|
|
|
|
|
|
|
|
|
|
Colombia
|
|
|
838
|
|
|
|
4,190
|
|
|
|
|
|
|
|
|
|
|
|
50,400
|
|
|
|
252,000
|
|
|
|
|
|
|
|
|
|
Ecuador
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,400
|
|
|
|
72,000
|
|
|
|
|
|
|
|
|
|
Peru
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50,400
|
|
|
|
252,000
|
|
|
|
|
|
|
|
|
|
Venezuela
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50,400
|
|
|
|
252,000
|
|
|
|
|
|
|
|
|
|
Argentina
|
|
|
|
|
|
|
|
|
|
|
17,273
|
|
|
|
86,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil
|
|
|
|
|
|
|
|
|
|
|
17,623
|
|
|
|
88,115
|
|
|
|
|
|
|
|
|
|
|
|
25,200
|
|
|
|
126,000
|
|
Chile
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
800
|
|
|
|
4,000
|
|
Mexico
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,600
|
|
|
|
8,000
|
|
Panama
|
|
|
|
|
|
|
|
|
|
|
8,481
|
|
|
|
42,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paraguay
|
|
|
|
|
|
|
|
|
|
|
12,296
|
|
|
|
61,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40,000
|
|
|
|
200,000
|
|
Trinidad & Tobago
|
|
|
|
|
|
|
|
|
|
|
283
|
|
|
|
1,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Uruguay
|
|
|
|
|
|
|
|
|
|
|
8,115
|
|
|
|
40,575
|
|
|
|
|
|
|
|
|
|
|
|
7,200
|
|
|
|
36,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
838
|
|
|
|
4,190
|
|
|
|
64,071
|
|
|
|
320,355
|
|
|
|
180,000
|
|
|
|
900,000
|
|
|
|
74,800
|
|
|
|
374,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-27
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
Subscribed and paid-in capital is held as follows at
December 31, 2008:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of Shares
|
|
|
Amounts
|
|
Stockholder
|
|
Series A
|
|
|
Series B
|
|
|
Series C
|
|
|
Series A
|
|
|
Series B
|
|
|
Series C
|
|
|
Total
|
|
|
Bolivia
|
|
|
1
|
|
|
|
28,866
|
|
|
|
|
|
|
|
1,200
|
|
|
|
144,330
|
|
|
|
|
|
|
|
145,530
|
|
Colombia
|
|
|
1
|
|
|
|
102,420
|
|
|
|
|
|
|
|
1,200
|
|
|
|
512,100
|
|
|
|
|
|
|
|
513,300
|
|
Ecuador
|
|
|
1
|
|
|
|
29,102
|
|
|
|
|
|
|
|
1,200
|
|
|
|
145,510
|
|
|
|
|
|
|
|
146,710
|
|
Peru
|
|
|
1
|
|
|
|
102,801
|
|
|
|
|
|
|
|
1,200
|
|
|
|
514,005
|
|
|
|
|
|
|
|
515,205
|
|
Venezuela
|
|
|
1
|
|
|
|
102,799
|
|
|
|
|
|
|
|
1,200
|
|
|
|
513,995
|
|
|
|
|
|
|
|
515,195
|
|
Argentina
|
|
|
|
|
|
|
|
|
|
|
17,481
|
|
|
|
|
|
|
|
|
|
|
|
87,405
|
|
|
|
87,405
|
|
Brazil
|
|
|
|
|
|
|
|
|
|
|
13,020
|
|
|
|
|
|
|
|
|
|
|
|
65,100
|
|
|
|
65,100
|
|
Chile
|
|
|
|
|
|
|
|
|
|
|
4,276
|
|
|
|
|
|
|
|
|
|
|
|
21,380
|
|
|
|
21,380
|
|
Costa Rica
|
|
|
|
|
|
|
|
|
|
|
2,539
|
|
|
|
|
|
|
|
|
|
|
|
12,695
|
|
|
|
12,695
|
|
Dominican Republic
|
|
|
|
|
|
|
|
|
|
|
3,448
|
|
|
|
|
|
|
|
|
|
|
|
17,240
|
|
|
|
17,240
|
|
Jamaica
|
|
|
|
|
|
|
|
|
|
|
141
|
|
|
|
|
|
|
|
|
|
|
|
705
|
|
|
|
705
|
|
Mexico
|
|
|
|
|
|
|
|
|
|
|
3,638
|
|
|
|
|
|
|
|
|
|
|
|
18,190
|
|
|
|
18,190
|
|
Panama
|
|
|
|
|
|
|
|
|
|
|
3,566
|
|
|
|
|
|
|
|
|
|
|
|
17,830
|
|
|
|
17,830
|
|
Paraguay
|
|
|
|
|
|
|
|
|
|
|
1,410
|
|
|
|
|
|
|
|
|
|
|
|
7,050
|
|
|
|
7,050
|
|
Spain
|
|
|
|
|
|
|
|
|
|
|
12,049
|
|
|
|
|
|
|
|
|
|
|
|
60,245
|
|
|
|
60,245
|
|
Trinidad & Tobago
|
|
|
|
|
|
|
|
|
|
|
160
|
|
|
|
|
|
|
|
|
|
|
|
800
|
|
|
|
800
|
|
Uruguay
|
|
|
|
|
|
|
|
|
|
|
6,087
|
|
|
|
|
|
|
|
|
|
|
|
30,435
|
|
|
|
30,435
|
|
Commercial banks
|
|
|
|
|
|
|
283
|
|
|
|
|
|
|
|
|
|
|
|
1,415
|
|
|
|
|
|
|
|
1,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|
|
366,271
|
|
|
|
67,815
|
|
|
|
6,000
|
|
|
|
1,831,355
|
|
|
|
339,075
|
|
|
|
2,176,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2008, the distribution of unpaid subscribed
capital and of subscribed callable capital is presented below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid Subscribed Capital
|
|
|
Subscribed Callable Capital
|
|
|
|
Series B
|
|
|
Series C
|
|
|
Series B
|
|
|
Series C
|
|
|
|
Number of
|
|
|
|
|
|
Number of
|
|
|
|
|
|
Number of
|
|
|
|
|
|
Number of
|
|
|
|
|
Stockholder
|
|
shares
|
|
|
Amount
|
|
|
shares
|
|
|
Amount
|
|
|
shares
|
|
|
Amount
|
|
|
shares
|
|
|
Amount
|
|
|
Bolivia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,400
|
|
|
|
72,000
|
|
|
|
|
|
|
|
|
|
Colombia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50,400
|
|
|
|
252,000
|
|
|
|
|
|
|
|
|
|
Ecuador
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,400
|
|
|
|
72,000
|
|
|
|
|
|
|
|
|
|
Peru
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50,400
|
|
|
|
252,000
|
|
|
|
|
|
|
|
|
|
Venezuela
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50,400
|
|
|
|
252,000
|
|
|
|
|
|
|
|
|
|
Argentina
|
|
|
|
|
|
|
|
|
|
|
33,182
|
|
|
|
165,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brasil
|
|
|
|
|
|
|
|
|
|
|
35,378
|
|
|
|
176,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chile
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
800
|
|
|
|
4,000
|
|
Dominican Republic
|
|
|
|
|
|
|
|
|
|
|
1,102
|
|
|
|
5,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mexico
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,600
|
|
|
|
8,000
|
|
Panama
|
|
|
|
|
|
|
|
|
|
|
10,769
|
|
|
|
53,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40,000
|
|
|
|
200,000
|
|
Uruguay
|
|
|
|
|
|
|
|
|
|
|
8,333
|
|
|
|
41,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
88,764
|
|
|
|
443,820
|
|
|
|
180,000
|
|
|
|
900,000
|
|
|
|
42,400
|
|
|
|
212,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-28
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
General
Reserve
The general reserve was
set-up to
cover possible contingencies. The stockholders decided to
increase the reserve by US$106,238, US$210,335 and US$268,249
during the years ended December 31, 2010, 2009 and 2008, by
appropriations from net income for the years ended
December 31, 2009, 2008 and 2007, respectively.
Reserve
Pursuant to Article N° 42 of the By-laws
CAFs by-laws establish that at least 10% of annual net
income is to be allocated to a reserve fund until that fund
amounts to 50% of the subscribed capital. Additional allocations
may be approved by the stockholders. At the stockholders
meetings in March 2010, 2009 and 2008, it was authorized to
increase the reserve by US$23,471, US$31,139 and US$40,100, from
net income for the years ended December 31, 2009, 2008 and
2007, respectively.
|
|
15.
|
Distributions
to Stockholders Funds
|
The Stockholders may distribute a portion of retained earnings
to special funds, created to promote technical cooperation,
sustainable human development and management of poverty relief
funds in the Shareholder countries.
In March 2010, 2009 and 2008, the stockholders agreed to
distribute US$105,000, US$70,000 and US$92,450, from retained
earnings at December 31, 2009, 2008 and 2007, respectively,
to the stockholders funds.
CAF is exempt from all taxes on income, properties and other
assets. It is also exempt from liability related to the payment,
withholding or collection of any tax or other levy.
|
|
17.
|
Derivative
Instruments and Hedging Activities
|
CAF utilizes derivative financial instruments to reduce exposure
to interest rate risk and foreign currency risk. CAF does not
hold or issue derivative financial instruments for trading or
speculative purposes.
By using derivative financial instruments to hedge exposures to
changes in interest rate and foreign exchange rates, CAF exposes
itself to credit risk and market risk. Credit risk is the
failure of the counterparty to perform under the terms of the
derivative contract. When the fair value of a derivative
contract is positive, the counterparty owes CAF, which creates
credit risk for CAF. When the fair value of a derivative
contract is negative, CAF owes the counterparty and, therefore,
it does not possess credit risk. CAF minimizes the credit risk
in derivative instruments by entering into transactions with
high-quality counterparties whose credit rating is A
or higher.
The market risk associated with interest rate and currency risk
is managed by swapping loans and borrowings subject to fixed
interest rates and denominated in other currency into floating
interest rate instruments denominated in U.S. dollars. CAF
enters into derivative instruments with market risk
characteristics that are expected to change in a manner that
will offset the economic change in value of specifically
identified loans, bonds or borrowings and other obligations.
Derivative contracts held by CAF consist of interest rate and
cross-currency swaps and are designated as fair value hedges of
specifically
F-29
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
identified loans, bonds or borrowings and other obligations with
fixed interest rates or non U.S. currency exposure.
CAF monitors the credit risk associated with derivative
transactions. Credit risk is managed by establishing exposure
limits based on the credit rating and size of the individual
counterparty, among other factors. To further reduce the credit
risk in derivatives, CAF enters into credit support agreements
with its major swap counterparties. This provides risk
mitigation, as the swap transactions are regularly
marked-to-market
and the party being the net obligor is requested to post
collateral when net
mark-to-market
exposure exceeds certain predetermined thresholds, which
decrease as counterpartys credit rating deteriorates. This
collateral is in the form of cash or highly rated and liquid
government securities. CAF offsets the fair value amount
recognized for derivative instruments and the fair value amount
recognized for the collateral, whether posted or received, under
master netting arrangements executed with the same counterparty,
in accordance with ASC
815-10-45-5.
The amount recognized for the right to receive collateral and
the obligation to post collateral that have been offset at
year-end 2010, was US$17,530 and US$29,401, respectively.
The following table presents the notional amount and fair values
of interest rate swaps and cross-currency swaps and the
underlying hedged items at December 31, 2010 and 2009:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notional amount
|
|
|
Fair value
|
|
|
|
Interest rate
|
|
|
Cross-
|
|
|
Derivative
|
|
|
Derivative
|
|
|
|
swap
|
|
|
currency swap
|
|
|
assets
|
|
|
liabilities
|
|
|
At December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
22,499
|
|
|
|
|
|
|
|
7,532
|
|
Loans
|
|
|
41,000
|
|
|
|
|
|
|
|
907
|
|
|
|
|
|
Borrowings
|
|
|
340,000
|
|
|
|
|
|
|
|
5,970
|
|
|
|
(1,340
|
)
|
Bonds
|
|
|
4,176,318
|
|
|
|
|
|
|
|
260,030
|
|
|
|
|
|
Bonds
|
|
|
|
|
|
|
2,525,857
|
|
|
|
258,082
|
|
|
|
126,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,556,418
|
|
|
|
2,548,356
|
|
|
|
524,989
|
|
|
|
132,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
21,880
|
|
|
|
|
|
|
|
4,107
|
|
Loans
|
|
|
33,000
|
|
|
|
|
|
|
|
|
|
|
|
213
|
|
Borrowings
|
|
|
140,000
|
|
|
|
|
|
|
|
|
|
|
|
2,445
|
|
Bonds
|
|
|
3,302,318
|
|
|
|
|
|
|
|
169,932
|
|
|
|
|
|
Bonds
|
|
|
|
|
|
|
1,860,619
|
|
|
|
266,813
|
|
|
|
38,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3, 475,318
|
|
|
|
1,882,499
|
|
|
|
436,745
|
|
|
|
45,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, 2010 and 2009, all of
CAFs derivatives which have been designated as hedging
relationships were considered fair value hedges. The change in
the fair value of such derivative instruments and the change in
fair value of hedged items attributable to risk being hedged are
included in the statement of income.
|
|
18.
|
Fair
Value Measurement
|
ASC 820 Fair Value Measurements and Disclosures,
defines fair value, expands disclosure requirements around fair
value and specifies a hierarchy of valuation techniques based on
whether the inputs to those
F-30
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
valuation techniques are observable or unobservable. Observable
inputs reflect market data obtained from independent sources,
while unobservable inputs reflect a companys market
assumptions to determine the best price of these instruments.
These two types of inputs create the following fair value
hierarchy:
|
|
|
|
|
Level 1 Quoted prices for identical instruments
in active markets.
|
|
|
|
Level 2 Quoted prices for similar instruments
in active markets; quoted prices for identical or similar
instruments in markets that are not active; and model-derived
valuations in which all significant inputs and significant value
drivers are observable in active markets.
|
|
|
|
Level 3 Valuations derived from valuation
techniques in which one or more significant inputs or
significant value drivers are unobservable.
|
Determination
of Fair Value
The following section describes the valuation methodologies used
by CAF to measure various financial instruments at fair value,
including an indication of the level in the fair-value hierarchy
in which each instrument is generally classified. Where
appropriate the description includes details of the valuation
models, the key inputs to those models as well as any
significant assumptions.
When available, CAF generally uses quoted market prices to
determine fair value, and classifies such items in Level 1.
In some cases where a market price is not available, CAF will
make use of acceptable practical expedients (such as matrix
pricing) to calculate fair value, in which case the items are
classified in Level 2. If quoted market prices are not
available, fair value is based upon internally developed
valuation techniques that use, where possible, current
market-based or independently sourced market parameters, such as
interest rates, currency rates, etc. Items valued using such
internally generated valuation techniques are classified
according to the lowest level input or value driver that is
significant to the valuation. Thus, an item may be classified in
Level 3 even though there may be some significant inputs
that are readily observable.
Where available, CAF may also make use of quoted prices for
recent trading activity in positions with the same or similar
characteristics to that being valued. The frequency and size of
transactions and the amount of the bid-ask spread are among the
factors considered in determining the liquidity of markets and
the relevance of observed prices from those markets. If relevant
and observable prices are available, those valuations would be
classified as Level 2. If prices are not available, other
valuation techniques would be used and the item would be
classified as Level 3.
|
|
|
|
|
Marketable securities: CAF uses quoted market
prices to determine the fair value of trading securities and
those transactions are classified in Level 1 of the
fair-value hierarchy.
|
|
|
|
Loans: The fair value of fixed rate loans,
which are hedged using derivative transactions, is determined
using the current variable interest rate for similar loans.
Loans transactions are classified in Level 2 of the fair
value hierarchy.
|
|
|
|
Derivative assets and liabilities: Derivative
transactions contracted and designated by CAF as hedges of risks
related to interest rates, currency rates or both for
transactions recorded as financial assets or liabilities are
also presented at fair value. In those cases, the fair value is
calculated utilizing market prices given by the counterparties.
Derivative transactions are classified in Level 2 of the
fair-value hierarchy.
|
|
|
|
Bonds and borrowings: For bonds issued and
medium and long term borrowings of CAF, the fair values are
determined utilizing internal valuation techniques, such as
discounting expected cash flows
|
F-31
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
using the appropriate discount rates for the applicable
maturity, reflecting the fluctuation of the hedged variables
such as interest and exchange rates. Those transactions are
generally classified in Level 2 of the fair-value hierarchy
depending on the observability of significant inputs to the
model.
Items Measured
at Fair Value on a Recurring Basis
The following tables present for each of the fair-value
hierarchy levels CAFs assets and liabilities that are
measured at fair value on a recurring basis at December 31,
2010 and 2009:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
balance
|
|
|
At December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Notes
|
|
|
45,011
|
|
|
|
|
|
|
|
|
|
|
|
45,011
|
|
Bonds of
non-U.S.
governments and government entities
|
|
|
258,673
|
|
|
|
|
|
|
|
|
|
|
|
258,673
|
|
Financial institutions and corporate securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial paper
|
|
|
882,529
|
|
|
|
|
|
|
|
|
|
|
|
882,529
|
|
Certificates of deposit
|
|
|
340,711
|
|
|
|
|
|
|
|
|
|
|
|
340,711
|
|
Bonds
|
|
|
666,388
|
|
|
|
|
|
|
|
|
|
|
|
666,388
|
|
Others
|
|
|
263,433
|
|
|
|
|
|
|
|
|
|
|
|
263,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,153,061
|
|
|
|
|
|
|
|
|
|
|
|
2,153,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,456,745
|
|
|
|
|
|
|
|
|
|
|
|
2,456,745
|
|
Loans
|
|
|
|
|
|
|
67,678
|
|
|
|
|
|
|
|
67,678
|
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap
|
|
|
|
|
|
|
266,907
|
|
|
|
|
|
|
|
266,907
|
|
Cross-currency swap
|
|
|
|
|
|
|
258,082
|
|
|
|
|
|
|
|
258,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
524,989
|
|
|
|
|
|
|
|
524,989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,456,745
|
|
|
|
592,667
|
|
|
|
|
|
|
|
3,049,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds
|
|
|
|
|
|
|
7,089,124
|
|
|
|
|
|
|
|
7,089,124
|
|
Borrowings and other obligations
|
|
|
|
|
|
|
347,310
|
|
|
|
|
|
|
|
347,310
|
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross-currency swap
|
|
|
|
|
|
|
132,887
|
|
|
|
|
|
|
|
132,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
132,887
|
|
|
|
|
|
|
|
132,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,569,321
|
|
|
|
|
|
|
|
7,569,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-32
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
balance
|
|
|
At December 31, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Notes
|
|
|
36,046
|
|
|
|
|
|
|
|
|
|
|
|
36,046
|
|
Bonds of
non-U.S.
governments and government entities
|
|
|
43,382
|
|
|
|
|
|
|
|
|
|
|
|
43,382
|
|
Financial institutions and corporate securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial paper
|
|
|
1,049,059
|
|
|
|
|
|
|
|
|
|
|
|
1,049,059
|
|
Certificates of deposit
|
|
|
351,959
|
|
|
|
|
|
|
|
|
|
|
|
351,959
|
|
Bonds
|
|
|
499,595
|
|
|
|
|
|
|
|
|
|
|
|
499,595
|
|
Others
|
|
|
234,213
|
|
|
|
|
|
|
|
|
|
|
|
234,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,134,826
|
|
|
|
|
|
|
|
|
|
|
|
2,134,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,214,254
|
|
|
|
|
|
|
|
|
|
|
|
2,214,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
|
|
|
|
|
61,458
|
|
|
|
|
|
|
|
61,458
|
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap
|
|
|
|
|
|
|
169,932
|
|
|
|
|
|
|
|
169,932
|
|
Cross-currency swap
|
|
|
|
|
|
|
266,813
|
|
|
|
|
|
|
|
266,813
|
|
|
|
|
|
|
|
|
436,745
|
|
|
|
|
|
|
|
436,745
|
|
|
|
|
2,214,254
|
|
|
|
498,203
|
|
|
|
|
|
|
|
2,712,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds
|
|
|
|
|
|
|
5,588,862
|
|
|
|
|
|
|
|
5,588,862
|
|
Borrowings and other obligations
|
|
|
|
|
|
|
137,555
|
|
|
|
|
|
|
|
137,555
|
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap
|
|
|
|
|
|
|
2,658
|
|
|
|
|
|
|
|
2,658
|
|
Cross-currency swap
|
|
|
|
|
|
|
42,478
|
|
|
|
|
|
|
|
42,478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45,136
|
|
|
|
|
|
|
|
45,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,771,553
|
|
|
|
|
|
|
|
5,771,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items Measured
at Fair Value on a Nonrecurring Basis
Equity investments initially recorded at cost are measured at
fair value on a non-recurring basis and therefore are not
included in the tables above. Such equity investments are
classified in Level 3 of the fair-value hierarchy.
The fair value of those equity investments is determined based
on financial analysis of the investees.
Equity investments with a cost of US$41,221, US$26,839 and
US$25,950 as of December 31, 2010, 2009 and 2008,
respectively, were written down to their fair value of
US$41,221, US$26,839 and US$24,793, respectively, resulting in
an impairment charge of US$1,157 during 2008, which was included
in the statement of income.
F-33
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
|
|
19.
|
Fair
Value of Financial Instruments
|
In accordance with ASC 825 Financial Instruments, CAF
also estimated the fair value of all financial instruments in
CAFs balance sheet, including those financial instruments
carried at cost, as presented in the table below. The fair value
estimates, methods and assumptions set forth below for
CAFs financial instruments are made solely to comply with
the requirements in ASC 820 Fair Value Measurements and
Disclosures and should be read in conjunction with the
financial statements.
The following is a summary of the carrying value and estimated
fair value of CAFs financial instruments at
December 31, 2010 and 2009:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
|
Carrying
|
|
|
Estimated
|
|
|
Carrying
|
|
|
Estimated
|
|
|
|
amount
|
|
|
fair value
|
|
|
amount
|
|
|
fair value
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
119.834
|
|
|
|
119.834
|
|
|
|
29,906
|
|
|
|
29,906
|
|
Deposits with banks
|
|
|
1,403,443
|
|
|
|
1,403,443
|
|
|
|
1,237,863
|
|
|
|
1,237,863
|
|
Marketable securities
|
|
|
2,456,745
|
|
|
|
2,456,745
|
|
|
|
2,214,254
|
|
|
|
2,214,254
|
|
Other investments
|
|
|
146,852
|
|
|
|
146,852
|
|
|
|
203,361
|
|
|
|
203,361
|
|
Loans, net
|
|
|
13,571,550
|
|
|
|
13,574,966
|
|
|
|
11,486,653
|
|
|
|
11,492,618
|
|
Equity investments (Cost method)
|
|
|
41,221
|
|
|
|
41,221
|
|
|
|
26,839
|
|
|
|
26,839
|
|
Accrued interest and commissions receivable
|
|
|
159,559
|
|
|
|
159,559
|
|
|
|
135,705
|
|
|
|
135,705
|
|
Derivative instruments
|
|
|
524,989
|
|
|
|
524,989
|
|
|
|
436,745
|
|
|
|
436,745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
2,739,497
|
|
|
|
2,739,497
|
|
|
|
2,650,706
|
|
|
|
2,650,706
|
|
Commercial paper
|
|
|
1,524,285
|
|
|
|
1,524,285
|
|
|
|
1,265,417
|
|
|
|
1,265,417
|
|
Bonds
|
|
|
7,212,812
|
|
|
|
7,215,181
|
|
|
|
5,699,219
|
|
|
|
5,701,764
|
|
Borrowings and other obligations
|
|
|
998,089
|
|
|
|
998,469
|
|
|
|
788,467
|
|
|
|
789,463
|
|
Derivative instruments
|
|
|
132,887
|
|
|
|
132,887
|
|
|
|
45,136
|
|
|
|
45,136
|
|
Accrued interest payable
|
|
|
120,001
|
|
|
|
120,001
|
|
|
|
98,093
|
|
|
|
98,093
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following methods and assumptions were used to estimate the
fair value of those financial instruments, not accounted for at
fair value under ASC 820 Fair Value Measurements and
Disclosures:
|
|
|
|
|
Cash and due from banks, deposits with banks, interest and
commissions receivable, other investment, deposits, commercial
paper, advances and short-term borrowings and accrued interest
payable: The carrying amounts approximate fair
value because of the short maturity of these instruments.
|
|
|
|
Loans: CAF is one of the few institutions that
offer loans for development in the stockholder countries. A
secondary market does not exist for the type of loans granted by
CAF. As rates on variable rate loans and loan commitments are
reset on a semiannual basis, the carrying value, adjusted for
credit risk, was determined to be the best estimate of fair
value. The fair value of fixed rate loans is determined using
the current variable interest rate for similar loans.
|
|
|
|
Equity investments: The fair value of equity
investments recorded at cost is determined based on a financial
analysis of the investees.
|
F-34
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
For additional information regarding CAFs determination of
fair value, including items accounted for at fair value under
ASC 820 Fair Value Measurements and Disclosures, see
note 18.
ASC
825-10-25
Fair value option permits companies to choose to
measure eligible financial assets and financial liabilities at
fair value. Once the fair value option has been chosen for an
instrument, this choice cannot be reversed. Fair value changes
on these financial assets and financial liabilities must be
recorded in the statement of income.
CAFs management decided to measure at fair value those
financial assets and liabilities denominated in currencies other
than U.S. dollars for which it has contracted a derivative
as an economic hedge for other currency and interest rate risks.
The results recorded in the statement of income as a result of
periodic cash flows and unrealized changes in fair value as of
December 31, 2010 and 2009 for instruments that fair value
option was chosen, and for derivatives used as economic hedges
for these instruments, are as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Bonds
|
|
|
16,897
|
|
|
|
(16,757
|
)
|
Loans
|
|
|
(3,184
|
)
|
|
|
3,593
|
|
Commercial Paper
|
|
|
|
|
|
|
(100
|
)
|
Advances and short-term borrowings
|
|
|
|
|
|
|
|
|
Other Investments
|
|
|
|
|
|
|
(99
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
13,713
|
|
|
|
(13,363
|
)
|
|
|
|
|
|
|
|
|
|
CAFs management decided to apply ASC 825 for cross
currency hedge transactions beginning January 1, 2009,
which did not have a significant effect on CAFs financial
statements. The changes in fair value options are reported in
the income statement.
|
|
21.
|
Commitments
and Contingencies
|
Commitments and contingencies include the following:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Credit agreements subscribed
|
|
|
6,371,035
|
|
|
|
3,056,384
|
|
Lines of credit
|
|
|
2,735,226
|
|
|
|
2,535,552
|
|
Letters of credit
|
|
|
195,327
|
|
|
|
2,241
|
|
Guarantees
|
|
|
225,973
|
|
|
|
183,211
|
|
|
|
|
|
|
|
|
|
|
These commitments and contingencies result from the normal
course of CAFs business and are related principally to
loans and loan equivalents that have been approved or committed
for disbursement.
In the ordinary course of business, CAF has entered into
commitments to extend credits; such financial instruments are
recorded as commitments upon signing the corresponding contract
and are reported in the financial statements when disbursements
are made.
F-35
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to the
Financial Statements
For the years ended December 31, 2010, 2009 and 2008
(In thousands of U.S. dollars)
The contracts to extend credit have fixed expiration dates and
in some cases expire without making disbursements. Also based on
experience, parts of the disbursements are made up to two years
after the signing of the contract. Therefore, the total
commitment amounts do not necessarily represent future cash
requirements.
Guarantees mature as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2010
|
|
|
2009
|
|
|
Less than one year
|
|
|
54,715
|
|
|
|
51,000
|
|
Between one and two years
|
|
|
62
|
|
|
|
|
|
Over five years
|
|
|
171,196
|
|
|
|
132,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
225,973
|
|
|
|
183,211
|
|
|
|
|
|
|
|
|
|
|
To the best of the knowledge of CAFs management, CAF is
not engaged in any litigation that is material to CAFs
business or that is likely to have an adverse effect on its
business, financial condition or results of operations.
CAF, as a multilateral financial institution, acts as
administrator of several funds funded by third parties and
CAFs own shareholders. These shareholder funds are funded
through distributions made each year by the shareholders from
CAFs prior years net income. The financial
statements of the funds are annually audited by independent
auditor firms.
In connection with the operations carried out by the funds,
CAFs financial responsibility is limited to the
funds balance, less commitments contracted. Since CAF does
not maintain residual interests in these funds, it does not
expect the generation of economic benefits for future
distribution. These funds are not part of CAFs accounts.
As of December 31, 2010 and 2009, CAF managed funds with
net assets of US$426,500 and US$374,170, respectively.
Management has evaluated subsequent events through
February 11, 2011, the issue date of the financial
statements. As a result of this evaluation, there are no
subsequent events, as defined, that require a disclosure in
CAFs financial statements at the year ended
December 31, 2010, except for:
|
|
|
|
|
On January 19, 2011, the Republic of Portugal paid
EUR3.75 million corresponding to the first installment
under the share subscription agreement between the Republic of
Portugal and CAF, thus becoming a Series C
shareholder.
|
|
|
|
On February 2, 2011, CAF issued EUR250 million,
4.625%, under its Medium Term Notes Programme due 2018.
|
|
|
|
On February 10, 2011, CAF issued CHF130 million,
2.625%, under its Medium Term Notes Programme due 2015.
|
F-36
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2011
|
|
|
2010
|
|
|
ASSETS
|
Cash and due from banks
|
|
|
155.622
|
|
|
|
119,834
|
|
Deposits with banks
|
|
|
1.566.004
|
|
|
|
1,403,443
|
|
Marketable securities
|
|
|
|
|
|
|
|
|
Trading
|
|
|
2,620,241
|
|
|
|
2,456,745
|
|
Other investments
|
|
|
129,792
|
|
|
|
146,852
|
|
Loans (includes US$78,003 and US$67,678 at fair value as of
March 31, 2011 and December 31, 2010, respectively, at
fair value)
|
|
|
14,951,661
|
|
|
|
13,783,043
|
|
Less loan commissions, net of origination costs
|
|
|
68,780
|
|
|
|
70,129
|
|
Less allowance for losses
|
|
|
149,432
|
|
|
|
141,364
|
|
|
|
|
|
|
|
|
|
|
Loans, net
|
|
|
14,733,449
|
|
|
|
13,571,550
|
|
|
|
|
|
|
|
|
|
|
Equity investments
|
|
|
72,897
|
|
|
|
94,721
|
|
Accrued Interest and commissions receivable
|
|
|
183,071
|
|
|
|
159,559
|
|
Derivative Instruments
|
|
|
519,605
|
|
|
|
524,989
|
|
Property and equipment, net
|
|
|
33,033
|
|
|
|
29,901
|
|
Other assets
|
|
|
46,801
|
|
|
|
39,281
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
20,060,515
|
|
|
|
18,546,875
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS EQUITY
|
LIABILITIES
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
3.521.705
|
|
|
|
2,739,497
|
|
Commercial paper
|
|
|
2.012.276
|
|
|
|
1,524,285
|
|
Deposits
|
|
|
3.521.705
|
|
|
|
2,739,497
|
|
Commercial paper
|
|
|
2.012.276
|
|
|
|
1,524,285
|
|
Bonds (includes US$7,283,611 and US$7,089,124 as of
March 31, 2011 and December 31, 2010, respectively, at
fair value)
|
|
|
7,401,737
|
|
|
|
7,212,812
|
|
Advances and short-term borrowings
|
|
|
50,000
|
|
|
|
|
|
Borrowings and other obligations (includes US$248,015 and
US$347,310 at fair value as of March 31, 2011 and
December 31, 2010)
|
|
|
938,083
|
|
|
|
998,089
|
|
Accrued interest and commissions payable
|
|
|
133,934
|
|
|
|
120,001
|
|
Derivative instruments
|
|
|
122,048
|
|
|
|
132,887
|
|
Accrued expenses and other liabilities
|
|
|
64,312
|
|
|
|
66,117
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
14,244,095
|
|
|
|
12,793,688
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS EQUITY
|
|
|
|
|
|
|
|
|
Subscribed and paid-in capital (authorized capital
US$10,000 million)
|
|
|
3,079,870
|
|
|
|
2,813,940
|
|
Additional paid-in capital
|
|
|
479,422
|
|
|
|
616,171
|
|
Reserves
|
|
|
2,229,576
|
|
|
|
2,156,937
|
|
Retained earnings
|
|
|
27,552
|
|
|
|
166,139
|
|
|
|
|
|
|
|
|
|
|
Total stockholders equity
|
|
|
5,816,420
|
|
|
|
5,753,187
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders equity
|
|
|
20,060,515
|
|
|
|
18,546,875
|
|
|
|
|
|
|
|
|
|
|
F-37
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Unaudited Condensed Interim Financial Information for
the Three-Month Periods ended March 31, 2011 and 2010
Statements of Income
(In thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2011
|
|
|
2010
|
|
|
Interest income
|
|
|
|
|
|
|
|
|
Loans
|
|
|
85,948
|
|
|
|
73,632
|
|
Investments and deposits with banks
|
|
|
7,824
|
|
|
|
8,789
|
|
Loan commissions
|
|
|
5,352
|
|
|
|
4,348
|
|
|
|
|
|
|
|
|
|
|
Total interest income
|
|
|
99,124
|
|
|
|
86,769
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
2,923
|
|
|
|
1,239
|
|
Commercial paper
|
|
|
2,402
|
|
|
|
2,523
|
|
Advances and short-term borrowings
|
|
|
3
|
|
|
|
|
|
Bonds
|
|
|
36,764
|
|
|
|
29,932
|
|
Borrowings and other obligations
|
|
|
2,619
|
|
|
|
2,367
|
|
Commissions
|
|
|
2,430
|
|
|
|
1,480
|
|
|
|
|
|
|
|
|
|
|
Total interest expense
|
|
|
47,141
|
|
|
|
37,541
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
51,983
|
|
|
|
49,228
|
|
Provision to allowance for loan losses
|
|
|
7,800
|
|
|
|
7,037
|
|
|
|
|
|
|
|
|
|
|
Net interest income, after provision to allowance for loan losses
|
|
|
44,183
|
|
|
|
42,191
|
|
|
|
|
|
|
|
|
|
|
Non-interest income
|
|
|
|
|
|
|
|
|
Other commissions
|
|
|
1,584
|
|
|
|
1,001
|
|
Dividends and equity in earnings of investees
|
|
|
3,192
|
|
|
|
88
|
|
Other income
|
|
|
1,312
|
|
|
|
332
|
|
|
|
|
|
|
|
|
|
|
Total non-interest income
|
|
|
6.088
|
|
|
|
1,421
|
|
|
|
|
|
|
|
|
|
|
Non-interest expenses
|
|
|
|
|
|
|
|
|
Administrative expenses
|
|
|
17,951
|
|
|
|
15,111
|
|
Other expenses
|
|
|
67
|
|
|
|
642
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expenses
|
|
|
18,018
|
|
|
|
15,753
|
|
|
|
|
|
|
|
|
|
|
Net income before unrealized changes in fair value related to
financial instruments
|
|
|
32,253
|
|
|
|
27,859
|
|
Unrealized changes in fair value related to financial instruments
|
|
|
(4,701
|
)
|
|
|
12,861
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
27,552
|
|
|
|
40,720
|
|
|
|
|
|
|
|
|
|
|
F-38
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Unaudited Condensed Interim Financial Information for
the Three-Month Periods ended March 31, 2011 and 2010
Statements of Cash Flows
(In thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2011
|
|
|
2010
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
|
27,552
|
|
|
|
40,720
|
|
Adjustments to reconcile net income to net cash (used in)
provided by operating activities
|
|
|
|
|
|
|
|
|
Unrealized loss (gain) on trading securities
|
|
|
1,821
|
|
|
|
(2,575
|
)
|
Amortization of loan commissions, net of origination costs
|
|
|
(2,815
|
)
|
|
|
(1,471
|
)
|
Provision for loan losses
|
|
|
7,800
|
|
|
|
7,037
|
|
Depreciation of property and equipment
|
|
|
627
|
|
|
|
521
|
|
Amortization of deferred charges
|
|
|
612
|
|
|
|
519
|
|
Provision for employees severance indemnities and benefits
|
|
|
1,730
|
|
|
|
1,503
|
|
Provisions for employees savings plan
|
|
|
330
|
|
|
|
332
|
|
Unrealized changes in fair value related to financial instruments
|
|
|
4,701
|
|
|
|
(12,861
|
)
|
Net changes in operating assets and liabilities
|
|
|
|
|
|
|
|
|
Severance indemnities paid or advanced
|
|
|
(1,171
|
)
|
|
|
(275
|
)
|
Employees savings plan paid or advanced
|
|
|
(232
|
)
|
|
|
5
|
|
Trading securities, net
|
|
|
(165,317
|
)
|
|
|
(561,742
|
)
|
Interest and commissions receivable
|
|
|
(23,512
|
)
|
|
|
(35,298
|
)
|
Other assets
|
|
|
(8,133
|
)
|
|
|
(50,556
|
)
|
Accrued interest payable
|
|
|
13,933
|
|
|
|
28,417
|
|
Accrued expenses and other liabilities
|
|
|
(2,462
|
)
|
|
|
46,249
|
|
|
|
|
|
|
|
|
|
|
Total adjustments and net changes in operating assets and
liabilities
|
|
|
(172,088
|
)
|
|
|
(580,195
|
)
|
|
|
|
|
|
|
|
|
|
Net cash (used in) operating activities
|
|
|
(144,536
|
)
|
|
|
(539,475
|
)
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
Purchases of other investments
|
|
|
(64.890
|
)
|
|
|
(23,384
|
)
|
Maturities of other investments
|
|
|
81,950
|
|
|
|
170,279
|
|
Loan origination and principal collections, net
|
|
|
(1,163,659
|
)
|
|
|
(690,611
|
)
|
Equity investments
|
|
|
21,824
|
|
|
|
(5,221
|
)
|
Purchases of property and equipment
|
|
|
(3,759
|
)
|
|
|
(3,297
|
)
|
|
|
|
|
|
|
|
|
|
Net cash (used in) investing activities
|
|
|
(1,128,534
|
)
|
|
|
(552,234
|
)
|
|
|
|
|
|
|
|
|
|
Carried forward
|
|
|
(1,273,070
|
)
|
|
|
(1,091,709
|
)
|
|
|
|
|
|
|
|
|
|
F-39
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Unaudited Condensed Interim Financial Information for
the Three-Month Periods ended March 31, 2011 and 2010
Statements of Cash Flows, Continued
(In thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2011
|
|
|
2010
|
|
|
Brought forward
|
|
|
(1,273,070
|
)
|
|
|
(1,091,709
|
)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
Net increase in deposits
|
|
|
782,208
|
|
|
|
89,330
|
|
Net increase in commercial paper
|
|
|
487,991
|
|
|
|
445,639
|
|
Proceeds from advances and short-term borrowings
|
|
|
50,000
|
|
|
|
|
|
Proceeds from issuance of bonds
|
|
|
472,902
|
|
|
|
286,635
|
|
Repayment of bonds
|
|
|
(300,000
|
)
|
|
|
|
|
Proceeds from borrowings and other obligations
|
|
|
500
|
|
|
|
103,157
|
|
Repayment of borrowings and other obligations
|
|
|
(57,863
|
)
|
|
|
(75,634
|
)
|
Distributions to stockholders funds
|
|
|
(93,500
|
)
|
|
|
(105,000
|
)
|
Proceeds from issuance of shares
|
|
|
129,181
|
|
|
|
147,682
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
1,471,419
|
|
|
|
891,809
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
198,349
|
|
|
|
(199,900
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
1,523,277
|
|
|
|
1,267,769
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
|
1,721,626
|
|
|
|
1,067,869
|
|
|
|
|
|
|
|
|
|
|
Consisting of:
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
|
155,622
|
|
|
|
17,602
|
|
Deposits with banks
|
|
|
1.566.004
|
|
|
|
1,050,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,721,626
|
|
|
|
1,067,869
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure
|
|
|
|
|
|
|
|
|
Interest paid during the period
|
|
|
34,990
|
|
|
|
4,934
|
|
|
|
|
|
|
|
|
|
|
Non-cash financing activities
|
|
|
|
|
|
|
|
|
Change in derivative instrument assets
|
|
|
(5,384
|
)
|
|
|
(30,322
|
)
|
Change in derivative instrument liabilities
|
|
|
(10,839
|
)
|
|
|
58,488
|
|
|
|
|
|
|
|
|
|
|
F-40
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Unaudited Condensed Interim Financial Information for
the Three-Month Period ended March 31, 2011 and Audited
Financial Information for the
Year ended December 31, 2010
Statement of Stockholders Equity
(In thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve Pursuant to
|
|
|
|
|
|
|
|
|
|
Subscribed
|
|
|
Additional
|
|
|
|
|
|
Article
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
and paid in
|
|
|
paid in
|
|
|
General
|
|
|
No
42
|
|
|
|
|
|
Retained
|
|
|
stockholders
|
|
|
|
capital
|
|
|
capital
|
|
|
Reserve
|
|
|
of by-laws
|
|
|
Total
|
|
|
earnings
|
|
|
equity
|
|
|
Balance at December 31, 2009
|
|
|
2,485,645
|
|
|
|
539,222
|
|
|
|
1,668,515
|
|
|
|
358,713
|
|
|
|
2,027,228
|
|
|
|
234,709
|
|
|
|
5,286,804
|
|
Capital Increase
|
|
|
328,295
|
|
|
|
(76,949
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
405,244
|
|
Appropriated for general reserve
|
|
|
|
|
|
|
|
|
|
|
106,238
|
|
|
|
|
|
|
|
106,238
|
|
|
|
(106,238
|
)
|
|
|
|
|
Appropriated for general reserve to Article 42 of by-laws
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,471
|
|
|
|
23,471
|
|
|
|
(23,471
|
)
|
|
|
|
|
Distribution to stockholders funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(105,000
|
)
|
|
|
(105,000
|
)
|
Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
166,139
|
|
|
|
166.139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2010
|
|
|
2,813,940
|
|
|
|
616,171
|
|
|
|
1,774,753
|
|
|
|
382,184
|
|
|
|
2,156,937
|
|
|
|
166,139
|
|
|
|
5,753,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Increase
|
|
|
265,930
|
|
|
|
(136,749
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
129,181
|
|
Equity in Treasury
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appropriated for general reserve
|
|
|
|
|
|
|
|
|
|
|
55,989
|
|
|
|
|
|
|
|
55,989
|
|
|
|
(55,989
|
)
|
|
|
|
|
Appropriated for general reserve to Article 42 of by-laws
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,650
|
|
|
|
16,650
|
|
|
|
(16,650
|
)
|
|
|
|
|
Distribution to stockholders funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(93,500
|
)
|
|
|
(93,500
|
)
|
Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27,552
|
|
|
|
27,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2011
|
|
|
3,079,870
|
|
|
|
479,422
|
|
|
|
1,830,742
|
|
|
|
398,834
|
|
|
|
2,229,576
|
|
|
|
27,552
|
|
|
|
5,816,420
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-41
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Unaudited Condensed Interim Financial Information for
the Three-Month Period ended March 31, 2010 and Audited
Financial Information for the
Year ended December 31, 2009
Statement
of Stockholders Equity
(In thousands of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve Pursuant to
|
|
|
|
|
|
|
|
|
|
Subscribed
|
|
|
Additional
|
|
|
|
|
|
Article
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
and paid in
|
|
|
paid in
|
|
|
General
|
|
|
No
42
|
|
|
|
|
|
Retained
|
|
|
stockholders
|
|
|
|
capital
|
|
|
capital
|
|
|
Reserve
|
|
|
of by-laws
|
|
|
Total
|
|
|
earnings
|
|
|
equity
|
|
|
Balance at December 31, 2008
|
|
|
2,176,430
|
|
|
|
280,255
|
|
|
|
1,458,180
|
|
|
|
327,574
|
|
|
|
1,785,754
|
|
|
|
311,474
|
|
|
|
4,553,913
|
|
Capital Increase
|
|
|
309,215
|
|
|
|
258,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
568,182
|
|
Appropriated for general reserve
|
|
|
|
|
|
|
|
|
|
|
210,335
|
|
|
|
|
|
|
|
210,335
|
|
|
|
(210,335
|
)
|
|
|
|
|
Appropriated for general reserve to Article 42 of by-laws
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31,139
|
|
|
|
31,139
|
|
|
|
(31,139
|
)
|
|
|
|
|
Distribution to stockholders funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(70,000
|
)
|
|
|
(70,000
|
)
|
Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
234,709
|
|
|
|
234,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2009
|
|
|
2,485,645
|
|
|
|
539,222
|
|
|
|
1,668,515
|
|
|
|
358,713
|
|
|
|
2,027,228
|
|
|
|
234,709
|
|
|
|
5,286,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Increase
|
|
|
234,000
|
|
|
|
(86,318
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
147,682
|
|
Equity in Treasury
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appropriated for general reserve
|
|
|
|
|
|
|
|
|
|
|
106,238
|
|
|
|
|
|
|
|
106,238
|
|
|
|
(106,238
|
)
|
|
|
|
|
Appropriated for general reserve to Article 42 of by-laws
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,471
|
|
|
|
23,471
|
|
|
|
(23,471
|
)
|
|
|
|
|
Distribution to stockholders funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(105,000
|
)
|
|
|
(105,000
|
)
|
Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40,720
|
|
|
|
40,720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2010
|
|
|
2,719,645
|
|
|
|
452,904
|
|
|
|
1,774,753
|
|
|
|
382,184
|
|
|
|
2,156,937
|
|
|
|
40,720
|
|
|
|
5,370,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-42
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to Unaudited Condensed Interim Financial Information
As of March 31, 2011 and 2010 and Audited Financial
Information
for the Year ended December 31, 2010
|
|
(1)
|
Basis of
Presentation
|
The condensed interim financial information as of March 31,
2011 and for the three-month periods ended March 31, 2011
and 2010 is unaudited and has been prepared in accordance with
accounting principles generally accepted in the United States of
America. In the opinion of management, such interim financial
information includes all adjustments, consisting of normal
recurring adjustments, necessary for the fair presentation of
the results of the interim periods. The results of operations
for the three-month period ended March 31, 2011 are not
necessarily an indication of the results to be expected for the
full year 2011.
This condensed interim financial information should be read in
conjunction with CAFs financial statements as of
December 31, 2010 and 2009 and for each of the years in the
three-year period ended December 31, 2010 and the notes
thereto presented in the prospectus.
|
|
(2)
|
Allowance
for Loan Losses
|
For the three-month period ended March 31, 2011, CAF had a
credit for loan losses of $7.8 million, compared to a
provision for loan losses of $7.0 million for the same
period in 2010. The allowance for loan losses as a percentage of
the loan portfolio was 1.0% at March 31, 2011, compared to
1.2% at March 31, 2010.
The allowance for loan losses is maintained at a level CAF
believes is adequate but not excessive to absorb probable losses
inherent in the loan portfolio as of the date of the financial
statements. The general allowance for loan losses is established
by CAF based on the individual risk rating for the long term
foreign currency debt of the borrower countries which is
assigned by the international risk rating agencies as of the
date of the financial statements preparation. This country risk
rating considers a default probability. In the case of a
sovereign loan portfolio CAFs preferred creditor status is
also considered.
A specific allowance is established by CAF for those loans that
are considered impaired. A loan is considered as impaired when
based on currently available information and events, there
exists the probability that CAF will not recover the total
amount of principal and interest as agreed in the terms of the
original loan contract. The impairment of loans is determined on
a loan by loan basis based on the present value of expected
future cash flows, discounted at the loans effective
interest rate.
Loan losses are charged against the allowance when management
believes the uncollectibility of a loan balance is confirmed.
Subsequent recoveries, if any, are credited to the allowance.
|
|
(3)
|
Commitments
and Contingencies
|
Commitments and contingencies include the following:
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2011
|
|
|
2010
|
|
|
Credit agreements subscribed
|
|
|
5,817,169
|
|
|
|
6,371,035
|
|
Lines of credit for foreign trade
|
|
|
2,116,792
|
|
|
|
2,735,226
|
|
Letters of credit for foreign trade
|
|
|
197,726
|
|
|
|
195,327
|
|
Guarantees
|
|
|
233,359
|
|
|
|
225,973
|
|
These commitments and contingencies result from the normal
course of CAFs business and are related principally to
loans and loan equivalents that have been approved or committed
for disbursement.
The contracts to extend credit have fixed expiration dates and
in some cases expire without making disbursements. Also based on
experience, parts of the disbursements are made up to two years
after the
F-43
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to Unaudited Condensed Interim Financial Information
As of March 31, 2011 and 2010 and Audited Financial
Information
for the Year ended December 31, 2010
signing of the contract. Therefore, the total commitment amounts
do not necessarily represent future cash requirements.
In the event the credit lines are not utilized, no additional
cost is incurred by CAF.
Guarantees primarily consist of partial credit guarantees given
to the Plurinational State of Bolivia, the Republic of Peru and
some private sector companies from the region for the payment of
principal and interest up to the following amounts (in thousands
of U.S. dollars):
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31
|
|
|
|
2011
|
|
|
2010
|
|
|
2010
|
|
|
|
|
|
|
|
|
2011
|
|
|
53.7
|
|
|
|
54.7
|
|
2012
|
|
|
0.1
|
|
|
|
0.1
|
|
2018
|
|
|
119.7
|
|
|
|
112.7
|
|
2025
|
|
|
28.0
|
|
|
|
28.0
|
|
2030
|
|
|
30.5
|
|
|
|
30.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
232.0
|
|
|
|
226.0
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Fair
Value Measurement
|
ASC 820 Fair Value Measurements and Disclosures
establishes a single authoritative definition of value, sets out
a framework for measuring fair value, and provides a
hierarchical disclosure framework for assets and liabilities
measured at fair value.
F-44
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to Unaudited Condensed Interim Financial Information
As of March 31, 2011 and 2010 and Audited Financial
Information
for the Year ended December 31, 2010
The following tables present for each of the fair-value
hierarchy levels CAFs assets and liabilities that are
measured at fair value on a recurring basis at March 31,
2011 and December 31, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
balance
|
|
|
At March 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Notes
|
|
|
33,307
|
|
|
|
|
|
|
|
|
|
|
|
33,307
|
|
Bonds of
non-U.S.
governments and government entities
|
|
|
419,537
|
|
|
|
|
|
|
|
|
|
|
|
419,537
|
|
Financial institutions and corporate securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial paper
|
|
|
967,345
|
|
|
|
|
|
|
|
|
|
|
|
967,345
|
|
Certificates of deposit
|
|
|
248,015
|
|
|
|
|
|
|
|
|
|
|
|
248,015
|
|
Bonds
|
|
|
495,957
|
|
|
|
|
|
|
|
|
|
|
|
495,957
|
|
Others
|
|
|
456,080
|
|
|
|
|
|
|
|
|
|
|
|
456,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,167,397
|
|
|
|
|
|
|
|
|
|
|
|
2,167,397
|
|
|
|
|
2,620,241
|
|
|
|
|
|
|
|
|
|
|
|
2,620,241
|
|
Loans
|
|
|
|
|
|
|
78,003
|
|
|
|
|
|
|
|
78,003
|
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap
|
|
|
|
|
|
|
216,949
|
|
|
|
|
|
|
|
216,949
|
|
Cross-currency swap
|
|
|
|
|
|
|
302,656
|
|
|
|
|
|
|
|
302,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
519,605
|
|
|
|
|
|
|
|
519,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,620,241
|
|
|
|
597,608
|
|
|
|
|
|
|
|
3,217,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds
|
|
|
|
|
|
|
7,283,611
|
|
|
|
|
|
|
|
7,283,611
|
|
Borrowings and other obligations
|
|
|
|
|
|
|
344,667
|
|
|
|
|
|
|
|
344,667
|
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap
|
|
|
|
|
|
|
348
|
|
|
|
|
|
|
|
348
|
|
Cross-currency swap
|
|
|
|
|
|
|
121,700
|
|
|
|
|
|
|
|
121,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
122,048
|
|
|
|
|
|
|
|
122,048
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,750,326
|
|
|
|
|
|
|
|
7,750,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury Notes
|
|
|
45,011
|
|
|
|
|
|
|
|
|
|
|
|
45,011
|
|
Bonds of
non-U.S.
governments and government entities
|
|
|
258,673
|
|
|
|
|
|
|
|
|
|
|
|
258,673
|
|
Financial institutions and corporate securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial paper
|
|
|
882,529
|
|
|
|
|
|
|
|
|
|
|
|
882,529
|
|
Certificates of deposit
|
|
|
340,711
|
|
|
|
|
|
|
|
|
|
|
|
340,711
|
|
Bonds
|
|
|
666,388
|
|
|
|
|
|
|
|
|
|
|
|
666,388
|
|
Others
|
|
|
263,433
|
|
|
|
|
|
|
|
|
|
|
|
263,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,153,061
|
|
|
|
|
|
|
|
|
|
|
|
2,153,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,456,745
|
|
|
|
|
|
|
|
|
|
|
|
2,456,745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F-45
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
Notes to Unaudited Condensed Interim Financial Information
As of March 31, 2011 and 2010 and Audited Financial
Information
for the Year ended December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
|
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
|
balance
|
|
|
Loans
|
|
|
|
|
|
|
67,678
|
|
|
|
|
|
|
|
67,678
|
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap
|
|
|
|
|
|
|
266,907
|
|
|
|
|
|
|
|
266,907
|
|
Cross-currency swap
|
|
|
|
|
|
|
258,082
|
|
|
|
|
|
|
|
258,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
524,989
|
|
|
|
|
|
|
|
524,989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,456,745
|
|
|
|
592,667
|
|
|
|
|
|
|
|
3,049,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds
|
|
|
|
|
|
|
7,089,124
|
|
|
|
|
|
|
|
7,089,124
|
|
Borrowings and other obligations
|
|
|
|
|
|
|
347,310
|
|
|
|
|
|
|
|
347,310
|
|
Derivative instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross-currency swap
|
|
|
|
|
|
|
132,887
|
|
|
|
|
|
|
|
132,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
132,887
|
|
|
|
|
|
|
|
132,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,569,321
|
|
|
|
|
|
|
|
7,569,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management has determined that CAF has only one reportable
segment since it does not manage its operations by allocating
resources based on a determination of the contributions to net
income of individual operations. CAF does not differentiate
between the nature of the products or services provided, the
preparation process, or the method for providing the services
among individual countries. For the periods ended March 31,
2011 and 2010, loans made to or guaranteed by six countries
individually generated in excess of 10 percent of loan
income, before swaps, as follows (in thousands of US dollars):
|
|
|
|
|
|
|
|
|
|
|
Periods Ended March 31,
|
|
|
|
2011
|
|
|
2010
|
|
|
Argentina
|
|
|
8,676
|
|
|
|
6,766
|
|
Bolivia
|
|
|
8,771
|
|
|
|
8,535
|
|
Colombia
|
|
|
12,200
|
|
|
|
11,348
|
|
Ecuador
|
|
|
14,682
|
|
|
|
12,255
|
|
Perú
|
|
|
14,624
|
|
|
|
12,431
|
|
Venezuela
|
|
|
15,575
|
|
|
|
12,407
|
|
As of the date of the issuance of these condensed financial
statements there are no other significant subsequent events that
require adjustments or disclosure, if applicable, which were not
already considered in this note or disclosure in the financial
statements.
F-46
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
SUPPLEMENTARY INFORMATION (UNAUDITED)
AS OF MARCH 31, 2011
BONDS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal Amount
|
|
|
|
|
|
Date of
|
|
Year of
|
|
|
|
Outstanding at
|
|
|
|
Interest
|
|
Agreement
|
|
Final
|
|
|
|
March 31,
|
|
Title
|
|
Rate
|
|
of Issue
|
|
Maturity
|
|
Currency
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
|
7.79% Yankee Bonds
|
|
Fixed
|
|
1997
|
|
2017
|
|
US
|
|
|
50.0
|
|
67/8% Yankee Bonds
|
|
Fixed
|
|
2002
|
|
2012
|
|
US
|
|
|
350.0
|
|
77/8% Yankee Bonds
|
|
Fixed
|
|
2002
|
|
2022
|
|
US
|
|
|
85.0
|
|
67/8% Yankee Bonds
|
|
Fixed
|
|
2003
|
|
2012
|
|
US
|
|
|
188.0
|
|
51/5% Yankee Bonds
|
|
Fixed
|
|
2003
|
|
2013
|
|
US
|
|
|
500.0
|
|
5.8175% Euro Bonds
|
|
Fixed
|
|
2004
|
|
2014
|
|
US
|
|
|
29.0
|
|
1.31% Samurai Bonds
|
|
Fixed
|
|
2005
|
|
2012
|
|
JPY(1)
|
|
|
5,000.0
|
|
51/8% Yankee Bonds
|
|
Fixed
|
|
2005
|
|
2015
|
|
US
|
|
|
250.0
|
|
Peruvian Soles Bonds
|
|
Fixed
|
|
2006
|
|
2018
|
|
PEN(2)
|
|
|
248.4
|
|
Venezuelan Bolivares Bonds
|
|
Floating
|
|
2006
|
|
2011
|
|
VEB(3)
|
|
|
215.0
|
|
5.75% Yankee Bonds
|
|
Fixed
|
|
2006
|
|
2017
|
|
US
|
|
|
250.0
|
|
Euro Bonds
|
|
Floating
|
|
2006
|
|
2011
|
|
EUR
|
|
|
300.0
|
|
5.75% Yankee Bonds
|
|
Fixed
|
|
2007
|
|
2017
|
|
US
|
|
|
250.0
|
|
Venezuelan Bolivares Bonds
|
|
Floating
|
|
2007
|
|
2012
|
|
VEB
|
|
|
107.5
|
|
Venezuelan Bolivares Bonds
|
|
Floating
|
|
2007
|
|
2012
|
|
VEB
|
|
|
127.5
|
|
2.32% Samurai Bonds
|
|
Fixed
|
|
2007
|
|
2014
|
|
JPY
|
|
|
10,000.0
|
|
Mexican Pesos Bonds
|
|
Floating
|
|
2007
|
|
2012
|
|
MXN(4)
|
|
|
750.0
|
|
5.75% Yankee Bonds
|
|
Fixed
|
|
2008
|
|
2017
|
|
US
|
|
|
250.0
|
|
5.00% Swiss Franc Bonds
|
|
Fixed
|
|
2008
|
|
2013
|
|
CHF(5)
|
|
|
200.0
|
|
Colombian Peso Bonds
|
|
Fixed
|
|
2008
|
|
2013
|
|
COP(6)
|
|
|
150,250.0
|
|
Colombian Peso Bonds
|
|
Fixed
|
|
2008
|
|
2018
|
|
COP
|
|
|
94,250.0
|
|
4.30% Euro Yen Bonds
|
|
Fixed
|
|
2009
|
|
2019
|
|
JPY
|
|
|
10,000.0
|
|
8.125% Yankee Bonds
|
|
Fixed
|
|
2009
|
|
2019
|
|
US
|
|
|
1,000.0
|
|
Colombian Peso Bonds
|
|
Fixed
|
|
2009
|
|
2019
|
|
COP
|
|
|
127,500.0
|
|
Colombian Peso Bonds
|
|
Fixed
|
|
2009
|
|
2014
|
|
COP
|
|
|
111,980.0
|
|
Peruvian Soles Bonds
|
|
Fixed
|
|
2009
|
|
2014
|
|
PEN
|
|
|
144.2
|
|
Structured Note
|
|
Floating
|
|
2010
|
|
2017
|
|
US
|
|
|
50.0
|
|
Euro Bond
|
|
Floating
|
|
2010
|
|
2015
|
|
EUR(7)
|
|
|
100.0
|
|
Euro Dollar Bond
|
|
Floating
|
|
2010
|
|
2014
|
|
US
|
|
|
100.0
|
|
3.11% Euro Dollar Bonds
|
|
Fixed
|
|
2010
|
|
2014
|
|
US
|
|
|
74.0
|
|
3.75% Yankee Bonds
|
|
Fixed
|
|
2010
|
|
2016
|
|
US
|
|
|
600.0
|
|
1.56% Samurai Bonds
|
|
Fixed
|
|
2010
|
|
2014
|
|
JPY
|
|
|
9,800.0
|
|
1.82% Samurai Bonds
|
|
Fixed
|
|
2010
|
|
2015
|
|
JPY
|
|
|
4,600.0
|
|
2.625% Swiss Franc Bonds
|
|
Fixed
|
|
2010
|
|
2015
|
|
CHF
|
|
|
250.0
|
|
Structured Note
|
|
Floating
|
|
2010
|
|
2017
|
|
US
|
|
|
50.0
|
|
Euro Bond
|
|
Fixed
|
|
2010
|
|
2018
|
|
EUR
|
|
|
400.0
|
|
2.625% Swiss Franc Bonds
|
|
Fixed
|
|
2011
|
|
2015
|
|
CHF
|
|
|
130.0
|
|
4.625% Euro Bond
|
|
Floating
|
|
2011
|
|
2018
|
|
EUR
|
|
|
250.0
|
|
|
|
|
(1) |
|
Yen. |
|
(2) |
|
Peruvian Nuevos Soles. |
|
(3) |
|
Venezuelan Bolivares. |
|
(4) |
|
Mexican Pesos. |
|
(5) |
|
Swiss Francs. |
|
(6) |
|
Colombian Pesos. |
|
(7) |
|
Euro. |
|
|
Note: In May 2011, CAF issued in the Panamanian market
US$40.0 million of Fixed Rate Notes due 2016. |
S-1
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
SUPPLEMENTARY INFORMATION (UNAUDITED)
AS OF MARCH 31, 2010
LOANS FROM COMMERCIAL BANKS, ADVANCES, DEPOSITS,
COMMERCIAL PAPER AND REPURCHASE AGREEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of
|
|
Year of
|
|
|
|
Principal Amount
|
|
|
Interest
|
|
Agreement of
|
|
Final
|
|
|
|
Outstanding at
|
Title
|
|
Rate
|
|
Issue
|
|
Maturity
|
|
Currency
|
|
March 31, 2011
|
|
|
|
|
|
|
|
|
|
|
(in US$ millions)
|
|
Medium and Long-term Loans
|
|
Various
|
|
Various
|
|
Various
|
|
Various
|
|
|
938.1
|
|
Advances and Short-term Loans
|
|
Floating
|
|
Various
|
|
Various
|
|
US
|
|
|
50
|
|
Deposits
|
|
Floating
|
|
Various
|
|
Various
|
|
Various
|
|
|
3,522
|
|
Commercial Paper
|
|
Floating
|
|
Various
|
|
Various
|
|
Various
|
|
|
2,012
|
|
LOANS
FROM MULTILATERALS AND BILATERALS, EXIMS AND EXPORT CREDIT
AGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date of
|
|
Year of
|
|
|
|
Principal Amount
|
|
|
Interest
|
|
Agreement of
|
|
Final
|
|
|
|
Outstanding at
|
Title
|
|
Rate
|
|
Issue
|
|
Maturity
|
|
Currency
|
|
March 31, 2011
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
IADB
|
|
Variable
|
|
Various
|
|
05/24/2023
|
|
US
|
|
|
26.8
|
|
ACDI (Canada)
|
|
0%
|
|
03/29/1974
|
|
9/29/2023
|
|
CAN(1)
|
|
|
1.6
|
|
KfW (Germany)
|
|
Variable
|
|
Various
|
|
12/28/2028
|
|
US
|
|
|
247.0
|
|
AID (U.S.A.)
|
|
3%
|
|
10/10/1972
|
|
11/27/2014
|
|
US
|
|
|
1.8
|
|
Nordic Investment Bank
|
|
Variable
|
|
Various
|
|
7/17/2021
|
|
US
|
|
|
37.0
|
|
European Investment Bank
|
|
Various
|
|
10/16/1997
|
|
12/15/2013
|
|
US
|
|
|
6.4
|
|
China Development Bank CDB
|
|
Variable
|
|
11/20/2007
|
|
11/29/2019
|
|
US
|
|
|
135.0
|
|
Instituto de Crédito Oficial ICO
|
|
Variable
|
|
05/31/2004
|
|
9/15/2014
|
|
US
|
|
|
38.7
|
|
JBIC (Japan)(2)
|
|
Variable
|
|
01/29/10
|
|
01/15/2015
|
|
US
|
|
|
100.0
|
|
|
|
|
(1) |
|
Canadian dollars. |
|
(2) |
|
On March 26, 2011, JBIC (Japan), as creditor, signed a loan
agreement with us for $300 million loan; as of
March 31, 2011, there have not been any disbursements
thereunder. |
S-2
CORPORACIÓN
ANDINA DE FOMENTO (CAF)
SUPPLEMENTARY INFORMATION (UNAUDITED)
AS OF MARCH 31, 2011
GUARANTEED DEBT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Principal Amount
|
|
|
Date of
|
|
Year of Final
|
|
Outstanding at
|
Borrower
|
|
Issue
|
|
Maturity
|
|
March 31, 2011
|
|
|
|
|
|
|
(in U.S.$ millions)
|
|
Plurinational State of Bolivia
|
|
|
10/03/2001
|
|
|
|
04/03/2018
|
|
|
|
31.4
|
|
Plurinational State of Bolivia
|
|
|
5/22/2004
|
|
|
|
5/22/2018
|
|
|
|
57.3
|
|
Republic of Peru
|
|
|
4/17/2006
|
|
|
|
2/13/2025
|
|
|
|
28.0
|
|
Fundacion Fondo de Garantia para préstamos a la
pequeña industria (Peru)
|
|
|
01/07/2009
|
|
|
|
12/07/2012
|
|
|
|
0.06
|
|
Fundacion Fondo de Garantia para préstamos a la
pequeña industria (Peru)
|
|
|
02/17/2011
|
|
|
|
04/03/2012
|
|
|
|
0.02
|
|
Cemento Andino S.A. (Peru)
|
|
|
07/15/2010
|
|
|
|
07/13/2018
|
|
|
|
31.0
|
|
Instituto de la función registral del Estado de Mexico
|
|
|
08/23/2010
|
|
|
|
08/23/2030
|
|
|
|
30.5
|
|
Citbank, N.A. Sucursal Bolivia
|
|
|
08/27/2010
|
|
|
|
11/28/2011
|
|
|
|
16.0
|
|
Gym S.A. (Peru)
|
|
|
03/21/2011
|
|
|
|
06/20/2011
|
|
|
|
37.7
|
|
S-3
$1,500,000,000
CORPORACIÓN
ANDINA DE FOMENTO
,
2011
PART II
OTHER
EXPENSES OF ISSUANCE AND DISTRIBUTION
The following is an estimate of the Registrants expenses
in connection with the issuance of the Securities that are the
subject of this registration statement:
|
|
|
|
|
Securities and Exchange Commission Registration Fee
|
|
$
|
69,660
|
|
Fiscal and Paying Agent Fees
|
|
$
|
10,000
|
|
Fees of rating agencies
|
|
$
|
300,000
|
|
Legal fees
|
|
$
|
300,000
|
|
Printing of registration statement, prospectus and other
documents
|
|
$
|
75,000
|
|
Blue Sky expenses (including counsel fees)
|
|
$
|
10,000
|
|
Other
|
|
$
|
70,000
|
|
|
|
|
|
|
Total
|
|
$
|
834,660
|
|
|
|
|
|
|
II-1
UNDERTAKINGS
The Registrant hereby undertakes:
(a) To file, during any period in which offers or sales are
being made, a post-effective amendment to this registration
statement:
(i) to include any prospectus required by
Section 10(a)(3) of the Securities Act of 1933;
(ii) to reflect in the prospectus any facts or events
arising after the effective date of this registration statement
(or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represent a fundamental change
in the information set forth in this registration statement.
Notwithstanding the foregoing, any increase or decrease in
volume of securities offered (if the total dollar value of
securities offered would not exceed that which was registered)
and any deviation from the low or high end of the estimated
maximum offering range may be reflected in the form of
prospectus filed with the Commission pursuant to
Rule 424(b) if, in the aggregate, the changes in volume and
price represent no more than a 20 percent change in the
maximum aggregate offering price set forth in the
Calculation of Registration Fee table in the
effective registration statement; and
(iii) to include any material information with respect to
the plan of distribution not previously disclosed in this
registration statement or any material change to such
information in this registration statement;
provided, however, that paragraphs (i),
(ii) and (iii) above do not apply if the information
required to be included in a post-effective amendment by those
paragraphs is contained in reports filed with or furnished to
the Commission by the registrant pursuant to Section 13 or
Section 15(d) of the Securities Exchange Act of 1934 that
are incorporated by reference in this registration statement, or
is contained in a form of prospectus filed pursuant to
Rule 424(b) that is part of this registration statement.
(b) That, for the purpose of determining any liability
under the Securities Act of 1933, each post-effective amendment
that contains a form of prospectus shall be deemed to be a new
registration statement relating to the securities offered
therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof.
(c) To remove from registration by means of a
post-effective amendment any of the securities being registered
which remain unsold at the termination of the offering.
(d) That, for purposes of determining any liability under
the Securities Act of 1933 to any purchaser:
If the registrant is subject to Rule 430C, each prospectus
filed pursuant to Rule 424(b) as part of a registration
statement relating to an offering, other than registration
statements relying on Rule 430B or other than prospectuses
filed in reliance on Rule 430A, shall be deemed to be part
of and included in the registration statement as of the date it
is first used after effectiveness. Provided,
however, that no statement made in a registration
statement or prospectus that is part of the registration
statement or made in a document incorporated or deemed
incorporated by reference into the registration statement or
prospectus that is part of the registration statement will, as
to the purchaser with a time of contract of sale prior to such
first use, supersede or modify any statement that was made in
the registration statement or prospectus that was part of the
registration statement or made in any such document immediately
prior to such date of first use.
(e) That, for purposes of determining liability of the
registrant under the Securities Act of 1933 to any purchaser in
the initial distribution of the securities, the undersigned
registrant undertakes that in a primary offering of securities
of the undersigned registrant pursuant to this registration
statement, regardless of the underwriting method used to sell
the securities to the purchaser, if the securities are offered
or sold to such purchaser by means of any of the following
communications, the undersigned
II-2
registrant will be a seller to the purchaser and will be
considered to offer or sell such securities to such purchaser:
(i) any preliminary prospectus or prospectus of the
undersigned registrant relating to the offering required to be
filed pursuant to Rule 424;
(ii) any free writing prospectus relating to the offering
prepared by or on behalf of the undersigned registrant or used
or referred to by the undersigned registrant;
(iii) the portion of any other free writing prospectus
relating to the offering containing material information about
the undersigned registrant or its securities provided by or on
behalf of the undersigned registrant; and
(iv) any other communication that is an offer in the
offering made by the undersigned registrant to the purchaser.
II-3
CONTENTS
The registration statement comprises:
(1) The facing sheet.
(2) The prospectus.
(3) Part II consisting of pages II-1
to II-6.
(4) The following exhibits:
|
|
|
|
|
|
1.1
|
|
|
Form of Underwriting Agreement for Debt Securities (incorporated
by reference to our registration statement No. 333-11970)
|
|
1.2
|
|
|
Form of Underwriting Agreement Pertaining to Guarantees(1)
|
|
1.3
|
|
|
Form of Pricing Agreement (incorporated by reference to our
registration statement No. 333-167348)
|
|
4.1
|
|
|
Form of Fiscal Agency Agreement, including form of certain Debt
Securities (incorporated by reference to our registration
statement No. 333-11970)
|
|
4.2
|
|
|
Form of Guarantee Agreement, including the form of Guarantee(1)
|
|
5.1
|
|
|
Opinion and consent of Jacob Kiriaty, Acting General Legal
Counsel to CAF
|
|
8.1
|
|
|
Opinion and consent of Sullivan & Cromwell LLP
|
|
23.1
|
|
|
Consent of Lara Marambio & Asociados, a member firm of
Deloitte Touche Tohmatsu Limited
|
|
23.2
|
|
|
Consent of KPMG in Venezuela
|
|
23.3
|
|
|
Consent of CAFs General Legal Counsel (included in Exhibit
5.1)
|
|
23.4
|
|
|
Consent of Sullivan & Cromwell LLP (included in Exhibit 8.1)
|
|
99.1
|
|
|
List of names and addresses of the underwriters for Debt
Securities (incorporated by reference to Exhibit (v) to our
registration statement No. 333-88404)
|
|
99.2
|
|
|
List of names and addresses of the underwriters for
Guarantees(1)
|
|
|
|
(1) |
|
To be filed by post-effective amendment. |
II-4
SIGNATURE
OF REGISTRANT
Pursuant to the requirements of the Securities Act of 1933, as
amended, the registrant, Corporación Andina de Fomento, has
duly caused this Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in
Caracas, Venezuela, on the 19th day of May, 2011.
CORPORACIÓN ANDINA DE FOMENTO
|
|
|
|
By:
|
/s/ Luis
Enrique Berrizbeitia
|
Name: Luis Enrique Berrizbeitia
|
|
|
|
Title:
|
Acting Executive President
|
II-5
SIGNATURE
OF AUTHORIZED AGENT IN THE UNITED STATES
Pursuant to the requirements of the Securities Act of 1933, as
amended, appearing below is the signature of Corporación
Andina de Fomentos authorized agent in the United States,
thereunto duly authorized, in Newark, Delaware, on the
19th day of May, 2011.
PUGLISI & ASSOCIATES
|
|
|
|
By:
|
/s/ Donald
J. Puglisi
|
Name: Donald J. Puglisi
II-6
EXHIBITS
|
|
|
|
|
|
|
|
|
Exhibit
|
|
|
|
Sequentially
|
Number
|
|
Exhibits
|
|
Numbered Page
|
|
|
1
|
.1
|
|
Form of Underwriting Agreement for Debt Securities (incorporated
by reference to our registration statement
No. 333-11970)
|
|
|
|
|
|
1
|
.2
|
|
Form of Underwriting Agreement pertaining to Guarantees
|
|
|
*
|
|
|
1
|
.3
|
|
Form of Pricing Agreement (incorporated by reference to our
registration statement
No. 333-167348)
|
|
|
|
|
|
4
|
.1
|
|
Form of Fiscal Agency Agreement, including form of certain Debt
Securities (incorporated by reference to our registration
statement
No. 333-11970)
|
|
|
|
|
|
4
|
.2
|
|
Form of Guarantee Agreement, including the form of Guarantee
|
|
|
*
|
|
|
5
|
.1
|
|
Opinion and consent of Jacob Kiriaty, Acting General Legal
Counsel to CAF
|
|
|
|
|
|
8
|
.1
|
|
Opinion and consent of Sullivan & Cromwell LLP
|
|
|
|
|
|
23
|
.1
|
|
Consent of Lara Marambio & Asociados, a member firm of
Deloitte Touche Tohmatsu Limited
|
|
|
|
|
|
23
|
.2
|
|
Consent of KPMG in Venezuela
|
|
|
|
|
|
23
|
.3
|
|
Consent of CAFs General Legal Counsel
|
|
|
**
|
|
|
23
|
.4
|
|
Consent of Sullivan & Cromwell LLP
|
|
|
***
|
|
|
99
|
.1
|
|
List of names and addresses of the underwriters for Debt
Securities (incorporated by reference to Exhibit (v) to our
registration statement
No. 333-88404)
|
|
|
|
|
|
99
|
.2
|
|
List of names and addresses of the underwriters for Guarantees
|
|
|
*
|
|
|
|
|
* |
|
To be filed by post-effective amendment. |
|
** |
|
Included in Exhibit 5.1 |
|
*** |
|
Included in Exhibit 8.1 |
II-7