S-B

As filed with the Securities and Exchange Commission on August 7, 2015

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 1700 New York 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

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, as amended.

CALCULATION OF REGISTRATION FEE

Title of Each Class of Securities to be Registered	Proposed Maximum Aggregate Offering Price(1)	Amount of Registration Fee(2)
Debt Securities	(1)	—
Guarantees	(1)	—
Total	$2,500,000,000(3)	$290,500

(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 $3,000,000,000 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 $500,000,000 principal amount of securities registered on the Registrant’s previously filed Registration Statement under Schedule B (File No. 333-189174), originally filed on June 7, 2013. The Registrant paid filing fees of $68,200 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, as amended, 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 AUGUST 7, 2015

$3,000,000,000

CORPORACIÓN ANDINA DE FOMENTO

Debt Securities

Guarantees

We may from time to time offer up to $3,000,000,000 (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 $3,000,000,000 (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                     , 2015

TABLE OF CONTENTS

	Page
About This Prospectus		1
Forward-Looking Information		2
Corporación Andina de Fomento		3
Legal Status of CAF		4
Use of Proceeds		5
Capitalization and Indebtedness		5
Capital Structure		6
Selected Financial Information		13
Management’s Discussion and Analysis of Financial Condition and Results of Operations		15
Operations of CAF		22
Funded Debt		33
Debt Record		34
Asset and Liability Management		35
Administration		36
The Full Member Shareholder Countries		40
Description of the Debt Securities		41
Description of the Guarantees		46
Taxation		47
Plan of Distribution		52
Validity of the Debt Securities		53
Validity of the Guarantees		53
Experts		53
Authorized Representative		53
Where You Can Find More Information		53
Index to Financial Statements		F-1
Unaudited Condensed Interim Financial Information and Notes Thereto		S-1
Supplementary Information (Unaudited) as of March 31, 2015		S-21

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 $3,000,000,000 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.

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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.

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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, Paraguay 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.¹ At December 31, 2014, the full member shareholder countries of CAF collectively accounted for 89.15% of the nominal value of our paid-in capital. The other shareholder countries of CAF are Barbados, Chile, Costa Rica, Dominican Republic, Jamaica, Mexico, 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, 2014, our associated shareholder countries collectively accounted for 10.80% of the nominal value of our paid-in capital. Our shares are also held by 13 financial institutions based in the full member shareholder countries, which collectively accounted for 0.05% of the nominal value of the paid-in capital at December 31, 2014. We refer to our full member shareholder countries and our associated shareholder countries collectively as our shareholder countries. CAF commenced operations in 1970. Our headquarters are in Caracas, Venezuela. We have offices in Asunción, Bogotá, Brasilia, Buenos Aires, La Paz, Lima, Madrid, Mexico City, Montevideo, Panama City, Port of Spain, and Quito.

We offer financial and related services to the governments of, and public and private institutions, corporations and joint ventures operating 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.

¹  In April 2012 Trinidad and Tobago signed an agreement to become a full member country, subject to the satisfaction of certain conditions. However, until such time and for purposes of this registration statement, Trinidad and Tobago is an associated shareholder country. See “Capital Structure — Paid-in Capital and Un-paid Capital — Trinidad and Tobago”.

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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 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. 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 CAF’s 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.

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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.

CAPITALIZATION AND INDEBTEDNESS

The following table sets forth our capitalization and indebtedness at March 31, 2015 and does not give effect to any transaction since that date.

	At March 31, 2015
	(in U.S.$ millions)
Short-term debt(1)	$	9,207.8
Long-term debt (maturities over one year)	$	14,347.8
Stockholders’ Equity
Capital
Subscribed and paid-in capital (authorized capital $15.0 billion)(2)		4,259.3
Additional paid-in capital		1,927.7
Total Capital		6,187.0
Reserves
Mandatory reserve		465.2
General reserve		2,136.0
Total reserves		2,601.2
Other comprehensive income		0.03
Retained earnings		40.9
Total shareholders’ equity		8,829.1
Total long-term debt and stockholders’ equity	$	23,176.9

(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, CAF’s authorized capital included callable capital of $5.0 billion at March 31, 2015

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CAPITAL STRUCTURE

General

As of March 31, 2015:

In March 2015, CAF’s stockholders’ Assembly approved an increase in CAF’s total authorized capital from $10.0 billion to $15.0 billion, of which $10.0 billion is paid-in capital and $5.0 billion is 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 the full member shareholder countries, 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 13 private sector financial institutions in the full member shareholder countries. We offered and sold 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. As owners of Series “B” shares, the full member shareholder countries collectively are entitled to elect five additional Directors and five Alternate Directors through cumulative voting, and the 13 private sector financial institutions collectively are entitled to elect one Director and one Alternate Director.

Series “C” shares are currently owned by nine associated shareholder countries: Barbados, Chile, Costa Rica, Dominican Republic, Jamaica, Mexico, 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 such 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 entities or individuals in the full member shareholder countries, except that no more than 49% of the Series “B” shares within any country may be held by private entities or individuals. Series “C” shares may be held by or transferred to public or private entities or individuals 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 CAF’s 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, CAF’s Extraordinary Shareholders’ Meeting approved the terms and conditions precedent by which Argentina, Brazil, Panama, Paraguay and Uruguay could become contracting parties to the Constitutive Agreement, could become full member shareholder countries and may own Series “A” shares. In general, in order to become a full member country of CAF, a country must (i) subscribe, directly or indirectly, for one Series “A” share, (ii) exchange all of its ordinary and callable Series “C” capital shares for Series “B” share equivalents, (iii) meet any conditions for its accession as determined by the Shareholders’ General Meeting, and (iv) deposit its instrument of adhesion with the Ministry of Foreign Affairs of the Bolivarian Republic of Venezuela. The country is deemed to have become a full member country of CAF 30 days after the Shareholders’ General

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Meeting determines that the conditions for its adhesion have been complied with, including the depositing of the instrument of adhesion. As of the date of this prospectus, Argentina, Brazil, Panama, Paraguay and Uruguay have ceased to be Series “C” shareholder countries, have adhered to the Constitutive Agreement and now possess Series “A” shares as full member shareholder countries.

Paid-in Capital and Un-paid Capital

At March 31, 2015, CAF’s subscribed paid-in and un-paid capital was $5.0 billion, of which $4.3 billion was paid-in capital and $0.7 billion 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.

Since 1990, capital contributions made to CAF (valor patrimonial) comprise a premium paid on each share purchased and the nominal $5,000 per share value established by CAF’s by-laws. The premium component of valor patrimonial is determined at the beginning of each subscription and applies to all payments under that subscription.

A list of all capital contributions made by shareholder countries during the last five years (as of March 31, 2015) follows:

Argentina

In 2009, Argentina subscribed to an additional $190.0 million in Series “C” shares, to be paid in seven installments, of which it paid $10.0 million in 2011, $15.0 million in 2012, $25.0 million in 2013 and $30.0 million in 2014.

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” share equivalents.

In March 2012, Argentina subscribed to an additional $228.6 million in Series “B” shares, to be paid in four installments, of which it paid $57.1 million in 2013 and $57.1 million in 2014.

Barbados

In September 2014, Barbados entered into an agreement to subscribe to Series “C” shares for a total capital contribution of $50.0 million, of which it paid $25.0 million in February 2015.

Bolivia

In 2009, Bolivia subscribed to an additional $105.0 million in Series “B” shares, to be paid in eight installments, of which it paid $5.0 million in 2010, $5.0 million in 2011, $10.0 million in 2012, $15.0 million in 2013 and $15.0 million in 2014.

In January 2012, Bolivia subscribed to an additional $91.5 million in Series “B” shares, to be paid in four installments, of which it paid $22.9 million in 2013 and $22.9 million in 2014.

Brazil

In 2009, Brazil subscribed to an additional $190.0 million in Series “C” shares to be paid in seven installments, of which it paid $25.1 million in 2013 and $25.0 million in 2014.

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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” share equivalents.

In September 2012, Brazil subscribed to an additional $228.6 million in Series “B” shares, to be paid in four installments, of which it paid $57.1 million in 2014.

Colombia

In 2009, Colombia subscribed to an additional $20.0 million in Series “B” shares, which was paid in full in 2010.

In 2010, Colombia subscribed to an additional $150 million in Series “B” shares to be paid in five installments of which it paid $2.0 million in 2010, $18.0 million in 2011, $30 million in 2012, $50.0 million in 2013 and $50.0 million in 2014.

In June 2012, Colombia subscribed to an additional $210.0 million in Series “B” shares to be paid in three installments beginning in 2015.

In August 2012, Colombia subscribed to an additional $228.6 million in Series “B” shares, to be paid in four installments, of which it paid $57.1 million in 2013 and $57.1 million in 2014.

Ecuador

In 2009, Ecuador subscribed to an additional $105.0 million in Series “B” shares to be paid in eight installments, of which it paid $5.0 million in 2010, $5.0 million in 2011, $10.0 million in 2012, $15 million in 2013 and $15 million in 2014.

In March 2012, Ecuador subscribed to an additional $91.5 million in Series “B” shares, to be paid in four annual installments, of which it paid $22.9 million in 2013 and $22.9 million in 2014.

Mexico

In June 2012, Mexico entered into an agreement to subscribe to an additional $100.0 million in Series “C” shares of CAF, which it paid for in full that same month.

Panama

In 2009, Panama subscribed to an additional $55.0 million in Series “C” shares to be paid in seven installments, of which it paid $3.0 million in 2011, $5.0 million in 2012, $7.0 million in 2013 and $10.0 million in 2014.

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” share equivalents.

In February 2012, Panama subscribed to an additional $91.5 million in Series “B” shares, to be paid in five installments, of which it paid $3.2 million in 2013 and 3.2 million in 2014.

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Paraguay

In 2009, Paraguay subscribed to an additional $55.0 million in Series “C” shares to be paid in seven installments, of which it paid $3.0 million in 2011,$5.0 million in 2012, $7.0 million in 2013 and $10.0 million in 2014.

In December 2011, upon completion of all requirements to become a full member shareholder country, Paraguay acquired a $1.2 million Series “A” share and exchanged all of its Series “C” ordinary and callable capital shares for Series “B” share equivalents.

In May 2012, Paraguay subscribed to an additional $91.5 million in Series “B” shares, to be paid in five annual installments, of which it paid $3.0 million and $5.0 million in 2014.

Peru

In 2009, Peru subscribed to an additional $380.0 million in Series “B” shares to be paid in eight installments, although this schedule was later modified to seven installments. As of the date of this prospectus, Peru has paid $235.0 million, with the balance to be paid in two annual installments ending in 2016.

In March 2012, Peru subscribed to an additional $228.6 million in Series “B” shares, to be paid in four annual installments, of which it paid $57.1 million in 2013 and $57.1 million in 2014.

Portugal

In 2009, Portugal subscribed to EUR 15.0 million in Series “C” shares to be paid in four equal installments and EUR 60.0 million in callable capital. As of the date of this prospectus, Portugal has paid the total balance of the subscribed paid-in capital.

Spain

In 2010, Spain subscribed to an additional $327.0 million of paid-in capital to be paid in five installments ending in 2014. All five payments have been received.

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. As of the date of this prospectus, Trinidad and Tobago has paid the total balance of the subscribed paid-in capital.

In April 2012, Trinidad and Tobago entered into an agreement to subscribe to an additional $323.4 million in Series “C” shares of CAF, to be paid in three annual installments, which it paid in full in 2014. Additionally, Trinidad and Tobago has formally expressed its intention to become a contracting party to the Constitutive Agreement. Subject to the satisfaction of certain conditions precedent for full member status specified in “— General” above and the additional condition that Trinidad and Tobago shall have paid for at least half of the capital for which it has subscribed, the subscription agreement contemplates the issuance of one Series “A” share to Trinidad and Tobago, as well as the exchange of Series “C” shares for Series “B” shares.

Uruguay

In 2009, Uruguay subscribed to an additional $55.0 million in Series “C” shares to be paid in seven annual installments ending in 2017, of which it paid $3.0 million in 2011,$5.0 million in 2012, $7.0 million in 2013 and $10.0 million in 2014.

In 2009, Uruguay subscribed to $36.0 million in callable capital.

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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” share equivalents.

In February 2012, Uruguay subscribed to an additional $91.5 million in Series “B” shares, to be paid in four installments, of which it paid $22.9 million in 2013 and $22.9 million in 2014.

Venezuela

In 2009, Venezuela subscribed to an additional $380.0 million in Series “B” shares to be paid in eight installments, of which it has paid $170.0 million as of the date of this prospectus.

In August 2012, Venezuela subscribed to an additional $228.6 million in Series “B” shares, to be paid in four installments, of which it paid $57.1 million in 2013 and $57.2 million in 2014.

As of the date of this prospectus, all shareholder countries were current in their capital payments, with the exception of Brazil, with an aggregate pending balance of $40.7 million that is related to the 2011 subscription agreement that it signed. We have been informed by Brazil that operational factors have delayed payment of the remaining balance, which is expected to be paid in the near future.

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The following table sets out the nominal value of our subscribed paid-in capital and un-paid capital as of March 31, 2015:

Shareholders	Paid-in Capital		Un-paid Capital
	(in U.S.$ thousands)
Series “A” Shares:
Argentina	$	1,200	$	—
Bolivia		1,200		—
Brazil		1,200		—
Colombia		1,200		—
Ecuador		1,200		—
Panama		1,200		—
Paraguay		1,200		—
Peru		1,200		—
Uruguay		1,200		—
Venezuela		1,200		—
Series “B” Shares:
Argentina		377,225		78,970
Bolivia		221,595		35,470
Brazil		329,635		109,655
Colombia		766,390		114,190
Ecuador		223,200		35,470
Panama		93,735		40,495
Paraguay		91,880		39,950
Peru		791,450		91,300
Uruguay		113,730		26,665
Venezuela		768,560		114,185
Private sector financial institutions		2,045		35
Series “C” Shares:
Barbados		8,805		8,805
Chile		27,705		—
Costa Rica		16,455		—
Dominican Republic		31,865		3,310
Jamaica		910		—
Mexico		58,785		—
Portugal		7,350		—
Spain		198,695		—
Trinidad and Tobago		117,285		—
Total	$	4,259,300	$	698,500

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 March 31, 2015, our reserves totaled $2.6 billion. At such date, the mandatory reserve amounted to $465.2 million, or 9.4% of subscribed paid-in and un-paid capital, and the general reserve amounted to $2.1 billion.

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Callable Capital

In addition to our subscribed paid-in and un-paid capital, our shareholders have subscribed to callable capital totaling $5.0 billion at March 31, 2015. 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. For further information regarding subscribed callable capital, see Note 16 (“Stockholders’ Equity”) to our audited financial statements.

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.

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SELECTED FINANCIAL INFORMATION

The following selected financial information as of and for the years ended December 31, 2014, 2013, and 2012 has been derived from our audited financial statements for those periods, which were audited by our independent auditors Lara Marambio & Asociados, a member firm of Deloitte Touche Tohmatsu Limited. The audit report of Lara Marambio & Asociados, a member firm of Deloitte Touche Tohmatsu Limited, has been included on page F-5. Our financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”). The following selected financial information as of and for the three-month periods ended March 31, 2015 and 2014 has been derived from our unaudited condensed interim financial information and includes all 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, 2015 are not necessarily indicative of results to be expected for the full year 2015. 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 “Management’s Discussion and Analysis of Financial Condition and Results of Operations”.

	Year Ended December 31									Three Months Ended March 31
	2014			2013			2012*			2015			2014***
	(in U.S.$ thousands, except ratios)
Income Statement Data
Interest income	$	569,660		$	508,247		$	520,139		$	157,917		$	136,627
Interest expense		(310,224	)		(297,293	)		(281,688	)		(79,522	)		(76,255	)
Net interest income		259,436			210,954			238,451			78,395			60,372
Provision (credit) to allowance for loan losses		21,552			(83,417	)		(4,865	)		4,553			(5,345	)
Net interest income after provision (credit) to allowance for loan losses		237,884			294,371			243,316			73,842			65,717
Non-interest income		22,961			15,903			9,281			3,453			4,206
Non-interest expenses		(124,681	)		(105,646	)		(91,851	)		(35,632	)		(29,130	)
Net income before unrealized changes in fair value related to financial instruments		136,164			204,628			160,746			41,663			40,793
Unrealized changes in fair value related to financial instruments		1,475			2,129			(577	)		(725	)		3,948
Net income	$	137,639		$	206,757		$	160,169		$	40,938		$	44,741
Balance Sheet Data (end of period)
Total assets		30,494,640			27,418,320			24,818,335			32,384,724			28,246,266
Total liabilities		21,731,404			19,601,771			17,953,273			23,555,544			20,371,707
Total stockholders’ equity		8,763,236			7,816,549			6,865,062			8,829,180			7,874,559
Total liabilities and stockholders’ equity	$	30,494,640		$	27,418,320		$	24,818,335		$	32,384,724		$	28,246,266
Loan Portfolio and Equity Investments
Loans before allowance for loan losses	$	19,144,087		$	18,003,271		$	16,355,410		$	19,390,053		$	18,071,738
Allowance for loan losses		55,763			38,336			125,799			60,316			32,991
Equity investments		292,345			228,385			146,811			310,915			235,736
Selected Financial Ratios
Return on average total stockholders’ equity(1)(2)		1.7	%		2.9	%		2.5	%		1.9	%		2.3	%
Return on average paid-in capital(2)		3.4	%		5.5	%		5.0	%		3.8	%		4.5	%
Return on average assets(3)		0.5	%		0.8	%		0.7	%		0.5	%		0.6	%
Administrative expenses divided by average total assets*		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		0.1	%		0.0	%		0.05	%		0.09	%		0.0	%
Allowance loan for losses as a percentage of loan portfolio		0.3	%		0.2	%		0.8	%		0.3	%		0.2	%

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(1) Net income divided by annual average total stockholders’ equity.

(2) Net income divided by annual average subscribed and paid-in capital.

(3) Net income divided by annual average total assets.

* Certain amounts in the 2012 financial statements have been reclassified to conform to the current year’s presentation.

** For the three-month periods, the amounts have been annualized.

*** Certain amounts in the March 31, 2014 financial statements have been reclassified to conform to the current year’s presentation.

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MANAGEMENT’S 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-7 and with our unaudited interim financial information as of March 31, 2015 and December 31, 2014, and for the three-month periods ended March 31, 2015 and 2014 and notes thereto beginning on page S-1 of this prospectus.

Summary of Results

Our net income for the year ended December 31, 2014 was $137.6 million, representing a decrease of $69.1 million, or 33.4%, compared to net income of $206.8 million for 2013. This decrease is mainly due to the change in the methodology for calculating the allowance for loan losses in 2013, which resulted in an increase of earnings in this year because of a one-time credit to the allowance for loan losses. If this adjustment to the methodology for calculating allowance for loan losses were not considered, the net income for 2014 would have increased 10.0% from net income for 2013. For the year ended December 31, 2013, our net income was $206.8 million, representing an increase of $46.6 million, or 29.1%, over net income of $160.2 million for 2012. This increase resulted from growth in our loan portfolio.

Our net income for the three-month period ended March 31, 2015 was $40.9 million, representing a decrease of $3.8 million, or 8.5%, compared to net income of $44.7 million for the corresponding period in 2014. This decrease is mainly due to changes in the loan loss provision which resulted in a loan loss provision reversal in that period. For the three-month period ended March 31, 2015, our net interest income was $78.4 million, representing an increase of $18.0 million, or 29.9%, compared to net interest income of $60.4 million for the corresponding period in 2014, with the change principally owing to an increase in the loan and liquidity portfolios and a lower cost of funding.

The reported annualized percentage increase in real GDP for 2014 for each of the full member shareholder countries at December 31, 2014 was as follows: Argentina, 0.0%; Bolivia, 5.4%; Brazil, 0.1%; Colombia, 4.6%; Ecuador, 3.8%; Panama, 6.2%; Paraguay, 4.4%; Peru, 2.4%; Uruguay, 3.4%; and Venezuela, (3.6)%.¹

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. As of March 31, 2015, we had one outstanding loan in Spain of $189.6 million in our loan portfolio, and 39.2% of our liquidity portfolio consisted of securities of issuers in European Union countries, including France — 12.0%, Spain — 5.7%, Germany — 4.4%, Netherlands — 4.3%, United Kingdom — 6.1%, Denmark — 0.4%, Ireland — 0.7%, Italy — 0.8%, Austria — 0.5%, Belgium — 2.5% and Sweden — 0.3%.

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 to borrowers (after swaps). During 2014, the LIBOR rate, which is the basis for the interest payable on both our external debt and on the loans in our loan portfolio decreased, which resulted in a lower net interest margin for our business.

Both 2014 and 2013 were characterized by growth in our loan portfolio as a result of our strategy to expand our shareholder base, principally through additional paid-in capital contributions 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 for loans from borrowers in our shareholder countries. These two main

¹  This information is extracted from official government sources (including but not limited to the ministries of finance of the full member shareholder countries).

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drivers led to loan portfolio growth of 6.3% in 2014 compared to 10.1% in 2013. We do not expect that our loan portfolio will be materially affected by the activities of other development banks in the region, since the financing needs of our shareholder countries exceed the current supply of lending resources. We believe that activities of other development banks are complementary to our lending operations.

The decline in global commodity prices, in particular oil, by approximately 51% from June 2014 to the date of this prospectus, has had an impact on some of our shareholder countries. Some countries that are net oil importers have benefited from this price decline, while countries that are net oil exporters have been adversely affected to varying degrees, in some cases significantly, generally corresponding with the importance of the oil and gas sector to the overall economy of the country. Continued low oil prices may result in a downward adjustment of the external risk rating of some of our sovereign borrowers, which may result in an increase in our allowance for loan losses, according to our methodology for determining the allowance for loan losses as explained in “— Income Statement — Provision (Credit) to Allowance for Loan Losses” below.

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 in this prospectus. 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 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 our 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, 2015 and 2014. For the three-month period ended March 31, 2015, our interest income was $157.9 million, representing an increase of $21.3 million, or 15.6%, compared to interest income of $136.6 million for the corresponding period in 2014. This increase resulted principally from an increase in the interest income generated by our loan and investment portfolio growth.

2014, 2013 and 2012. For the year ended December 31, 2014, our interest income was $569.7 million, representing an increase of $61.4 million, or 12.1%, compared to interest income of $508.2 million for the year ended December 31, 2013. This increase resulted primarily from the higher yield of liquid assets compared to the corresponding period in 2013. Average market interest rates were lower in 2014, when six-month LIBOR averaged 0.33% per annum compared with 0.41% per annum in 2013, representing a decrease of 19.5% in average six-month LIBOR. Interest income for the year ended December 31, 2013 was $508.2 million, representing a decrease of $11.9 million, or 2.29%, compared to interest income of $520.1 million for the year ended December 31, 2012, such decrease resulted principally from a decrease in market interest rate.

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Interest Expense

Three Months Ended March 31, 2015 and 2014. For the three-month period ended March 31, 2015, our interest expense was $79.5 million, representing an increase of $3.3 million, or 4.3%, compared to interest expense of $76.3 million for the corresponding period in 2014. This increase resulted principally from an increase in long-term liabilities in order to match our growth in assets.

2014, 2013 and 2012. For the year ended December 31, 2014, our interest expense was $310.2 million, representing an increase of $12.9 million, or 4.3%, from our interest expense of $297.3 million for the year ended December 31, 2013. This increase resulted primarily from an increase in liabilities to fulfill higher funding requirements related to the growth in the average levels of our loan portfolio compared with 2013, as well as an increase in the funding costs associated with an increase in the average term of our financial liabilities. The average amount of our liabilities increased by 10.1% at December 31, 2014, compared with the average level at December 31, 2013. Interest expense for the year ended December 31, 2013 was $297.3 million, representing an increase of $15.6 million, or 5.5%, from our interest expense of $281.7 million for the year ended December 31, 2012. This increase is attributable to an increase in liabilities to fulfill higher funding requirements caused by the growth in our loan portfolio and our liquidity portfolio. The average amount of our liabilities as of December 31, 2013 rose by 12.6% compared with the average level as of December 31, 2012.

Net Interest Income

Three Months Ended March 31, 2015 and 2014. For the three-month period ended March 31, 2015, our net interest income was $78.4 million, representing an increase of $18.0 million, or 30.0%, compared to net interest income of $60.4 million for the corresponding period in 2014. The net interest income margin was 1.05% for the three-month period ended March 31, 2015, as compared to 0.90% for the corresponding period in 2014, with the change principally owing to an increase in the loan and liquidity portfolios and a lower cost of funding.

2014, 2013 and 2012. For the year ended December 31, 2014, our net interest income was $259.4 million, representing an increase of $48.4 million, or 23.0%, over net interest income of $211.0 million for the year ended December 31, 2013. This increase resulted from higher yield of liquid assets, an increase in the loan portfolio and an important reduction in the margin for new issuances; despite the decrease of the LIBOR rate during the period. Our net interest income for the year ended December 31, 2013 was $211.0 million, representing a decrease of $27.5 million, or 11.5%, from net interest income of $238.5 million for the year ended December 31, 2012. This decrease resulted principally from a combination of a decrease in market interest rates and increase in liabilities to fulfill higher funding requirements. Our net interest income margin was 0.95%, in 2014, compared to 0.88% in 2013 and 1.1% in 2012.

Provision (Credit) to Allowance for Loan Losses

Effective as of September 2013, we implemented an improvement in the determination of the loan loss provision which resulted in a loan loss provision reversal. This determination methodology, which we believe is in line with that of many other supranationals, incorporates recovery rates that differ between sovereign and non-sovereign guaranteed loans.

The credit and provision in the periods described below reflect management’s estimates for both general and specific provisions. The allowance for loan losses is estimated considering the credit risk exposure, probability of default and, beginning December 31, 2013, loss given default, based on external data provided by risk rating agencies, recognizing such effects in profit or loss for the period. We established a specific allowance for loan losses for impaired loans. A loan is considered as impaired when, based on currently available information and events, there exists the probability that we will not recover the total amount of principal and interest as agreed in the terms of the original loan contract. See Note 1g. to our audited financial statements for further information regarding allowance for loan losses calculations.

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Three Months Ended March 31, 2015 and 2014. For the three-month period ended March 31, 2015, as a result of the growth of the loan portfolio and changes in the ratings of some of the borrowers provided by risk rating agencies, we recorded a provision to allowance for loan losses of $4.6 million, compared with a credit to allowance for loan losses of $5.3 million for the corresponding period in 2014, when changes in the determination of loan loss provision were implemented. The allowance for loan losses as a percentage of the loan portfolio was 0.3% at March 31, 2015, compared to 0.2% at March 31, 2014.

2014, 2013 and 2012. For the year ended December 31, 2014, we recorded a provision to allowance for loan losses of $21.6 million, representing a decrease of $105.0 million, or 125.8%, compared with our credit to allowance for loan losses of $83.4 million for the corresponding period in 2013. For the year ended December 31, 2013, we recorded a credit to allowance for loan losses of $83.4 million, representing an increase of $78.6 million, or 1,614.6%, compared with our credit to allowance for loan losses of $4.9 million for the corresponding period in 2012. Changes in the provision occurred mainly because of the improvement in determination methodology discussed above.

Non-Interest Income

Our non-interest income consists principally of commissions, dividends and our corresponding share of earnings or losses on equity investments, which are accounted for using the equity method, and other income.

Three Months Ended March 31, 2015 and 2014. For the three-month period ended March 31, 2014, our non-interest income was $3.5 million, representing a decrease of $0.7 million, or 17.9%, compared to non-interest income of $4.2 million for the corresponding period in 2014. This decrease was primarily because of a decrease in income from commissions.

2014, 2013 and 2012. For the year ended December 31, 2014, our total non-interest income was $23.0 million, representing an increase of $7.1 million, or 44.4%, from total non-interest income of $15.9 million for the year ended December 31, 2013. This increase resulted principally from an increase in commissions and other income. Our total non-interest income for the year ended December 31, 2013 represented an increase of $6.6 million or 71.4%, as compared to our total non-interest income of $9.3 million for the year ended December 31, 2012. This increase resulted principally from an increase in commissions and other income, which in turn was mostly due to fluctuations in exchange rates.

Non-Interest Expenses

Our non-interest expenses consist principally of administrative expenses, representing 91.1% and 99.8% of total non-interest expenses for the three-month periods ended March 31, 2015 and March 31, 2014, respectively.

Three Months Ended March 31, 2015 and 2014. For the three-month period ended March 31, 2015, our non-interest expenses were $35.6 million representing an increase of $6.5 million, or 22.3%, compared to total non-interest expenses of $29.1 million for the corresponding period in 2014. The increase resulted principally from an increase in administrative expenses.

For the three-month period ended March 31, 2015, our administrative expenses were $32.5 million, or 0.4% of our total average assets, representing an increase of $3.4 million, or 11.8%, compared to administrative expenses of $29.1 million for the corresponding period in 2014. The increase resulted principally from the business growth and impact of local currency expenses and inflation in Venezuela, where our principal executive offices are located.

2014, 2013 and 2012. For the year ended December 31, 2014, our total non-interest expenses were $124.7 million, representing an increase of $19.0 million, or 18.0%, over total non-interest expenses of $105.7 million for the year ended December 31, 2013. The total non-interest expenses for the year ended December 31, 2013 represented an increase of $13.8 million, or 15.0%, over total non-interest expenses of $91.9 million for the year ended December 31, 2012.

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For the year ended December 31, 2014, administrative expenses were $116.7 million, or 0.4% of our total average assets, representing an increase of $12.7 million over administrative expenses of $104.0 million for the year ended December 31, 2013. The increase resulted principally from the growth in our loan portfolio. For the year ended December 31, 2013, administrative expenses were $104.0 million, or 0.4% of our total average assets, representing an increase of $13.0 million over administrative expenses of $91.0 million for the year ended December 31, 2012. The increase resulted principally from the growth in our loan portfolio. Equity investments, which do not have readily determinable fair values and in which we have a participation of less than 20% of the investee’s equity, are required to be recorded at cost according to U.S. GAAP. Also, management is required to assess the value of these investments at least annually 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 to take $0.0 in impairment charges on any of our equity investments in each of 2013 and 2012; $7.3 million in 2014 and $0.3 million for the three-month period ended March 31, 2015.

Balance Sheet

Total Assets and Liabilities

March 31, 2015. At March 31, 2015, our total assets were $32.4 billion, representing an increase of $1.9 billion, or 6.2%, over total assets of $30.5 billion at December 31, 2014. The increase in assets resulted primarily from an increase in our liquidity and loan portfolios. At March 31, 2015, our total liabilities were $23.6 billion, representing an increase of $1.8 billion, or 8.4%, over total liabilities of $21.7 billion at December 31, 2014. The increase in liabilities resulted primarily from an increase in funding, mainly through bond issuances, as a response to the growth of assets.

2014 and 2013. At December 31, 2014, our total assets were $30.5 billion, representing an increase of $3.1 billion, or 11.2%, over total assets of $27.4 billion at December 31, 2013. The increase in our total assets principally reflected a 22.2% increase in the liquid assets portfolio and a 6.3% increase in the loan portfolio. At December 31, 2014, our total liabilities were $21.7 billion, representing an increase of $2.1 billion, or 10.9%, over total liabilities of $19.6 billion at December 31, 2013. The increase in our total liabilities resulted from higher funding requirements to support a higher level of assets.

Asset Quality

Overdue Loans

March 31, 2015 and December 31, 2014. At each of March 31, 2015 and December 31, 2014, the total principal amount of outstanding overdue loans was $0.0 (not including non-accrual loans in overdue status).

December 31, 2013. There were $0.0 in overdue loans at December 31, 2013.

Impaired Loans and Non-Accrual Loans

March 31, 2015 and December 31, 2014. At each of March 31, 2015 and December 31, 2014, the total principal amount of our impaired loans was $16.5 million, or 0.09% of the total loan portfolio owing to an impairment of two loans to private sector borrowers in Argentina. We consider a loan to be impaired when it is in non-accrual status.

December 31, 2013. There were $0.0 million of loans in non-accrual status at December 31, 2013.

Restructured Loans

March 31, 2015 and December 31, 2014. At December 31, 2014, the total principal amount of outstanding restructured loans was $0.0 million, or 0.0% of the total loan portfolio.

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December 31, 2013. At December 31, 2013, the total principal amount of outstanding restructured loans was $8.3 million, or 0.05% of the total loan portfolio, represented one loan to a private sector borrower in Colombia.

Loan Write-offs and Recoveries

March 31, 2015. There were $0.0 in loan write-offs during the three-month period ended March 31, 2015, and there were $0.0 in loan write-offs in the corresponding period of 2014. We booked recoveries of $0.0 during the three-month period ended March 31, 2015 and $0.0 during the corresponding period of 2014.

2014 and 2013. There were $4.1 million of loans written-off in 2014 and $4.1 million of loans written-off in 2013. During 2014 and 2013, we booked recoveries of $0.0 thousand and $78.9 thousand, respectively.

See “Operations of CAF — Asset Quality” for further information regarding our asset quality. See “— Balance Sheet” above for details regarding the distribution of our loans by country and “Operations of CAF — Loan Portfolio” for details regarding the distribution of our loans by economic sector.

Commitments and Contingencies

We enter into commitments and contingencies in the normal course of our business to facilitate our business and objectives. Commitments and contingencies include (1) credit agreements subscribed and pending disbursements, (2) lines and letters of credit for foreign trade, (3) equity investment agreements subscribed and (4) partial credit guarantees. For further discussion of these arrangements, see Note 23 (“Commitments and Contingencies”) to our audited financial statements in this prospectus.

Liquidity

Effective as of September 2014, we updated our liquidity policy, which requires us to maintain sufficient liquid assets to cover at least 12 months of net cash requirements.

Net cash requirements under this new policy are calculated as follows:

(+) Scheduled loan collections

(+) Committed paid-in capital payments

(-) Scheduled debt service

(-) Committed disbursements

Our investment policy requires that at least 90% 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 of our liquid assets 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, 2015. At March 31, 2015, our liquid assets consisted of $11.4 billion of cash, time deposits and securities, of which 97.1% were invested in investment grade instruments rated A-/A3/A- or better by a U.S. nationally recognized statistical rating organization, compared to $10.1 billion of cash, time deposits and securities, of which 96.7% was invested in investment grade instruments rated A-/A3/A- or better by a U.S. nationally recognized statistical rating organization, at December 31, 2014. At March 31, 2015, 35.1% of our liquid assets were invested in time deposits in financial institutions, 20.9% in commercial paper, 11.3% in corporate and financial institution bonds, 22.1% in certificates of deposit, 3.3% in U.S. Treasury Notes, 7.3% in other instruments, including deposits in cash.

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2014 and 2013. At December 31, 2014, our liquid assets consisted of $10.1 billion of cash, time deposits and securities, of which 96.7% were invested in investment grade instruments rated A-/A3/A- or better by a U.S. nationally-recognized statistical rating organization; 28.3% of our liquid assets were invested in time deposits in financial institutions, 10.6% in commercial paper, 11.7% in corporate and financial institution bonds, 22.3% in certificates of deposit, 18.9% in U.S. Treasury Notes and 8.2% in other instruments including deposits in cash. At December 31, 2013, our liquid assets consisted of $8.3 billion of cash, time deposits and securities, of which 96.4% were invested in investment grade instruments rated A-/A3/A- or better by a U.S. nationally-recognized statistical rating organization, 27.0% of our liquid assets were invested in time deposits in financial institutions, 23.9% in commercial paper, 14.0% in corporate and financial institution bonds, 17.5% in certificates of deposit, 8.1% in U.S. Treasury Notes, 1.6% in bonds of non-U.S. governments and government entities and 7.9% in other instruments, including deposits in cash.

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 its markets, either directly or through financial intermediaries. See “Operations of CAF”.

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OPERATIONS OF CAF

CAF’s 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 and private infrastructure projects and the analysis of public policies within the different development sectors;

• Productive and Financial Sectors, which is responsible for our relationships with public and private sector corporations and financial institutions;

• Social Development, which is responsible for financings and investments in social areas and in micro, small and medium size enterprises; and

• Energy, which is responsible for the financing of public and private energy projects and the analysis of public policies and market trends within the energy sector.

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.

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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 endeavor 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 endeavor 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 beneficiary’s 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 financial institutions. The “A” portion of the loan is made directly to the borrower by us. Under the “B” portion, financial institutions 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, 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 loan origination fee up to 0.85% of the total loan amount and a commitment fee equal to 0.35% per annum on undisbursed loan balances. Substantially all loans are denominated in U.S. dollars.

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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.

At December 31, 2014, our total assets were $30.5 billion, of which $19.1 billion, or 62.8%, were disbursed and outstanding loans. At December 31, 2014, the “B” loan portion of our “A/B” loan transactions totaled $1.1 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. 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,
	2014				2013		2012
	(in U.S.$ millions)
Public Sector		81.3	%	15,564.1		14,974.6		13,823.6
Private Sector		18.7	%	3,577.9		3,026.1		2,530.3
		100.0	%	19,142.0		18,000.7		16,353.9
Fair value adjustments on hedging activities				2.1		2.6		1.5
Total				19,144.1		18,003.3		16,355.4

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,
	2014				2013		2012
	(in U.S.$ millions)
Argentina		14.2	%	2,718.0		2,457.5		2,114.7
Bolivia		10.0	%	1,909.5		1,752.6		1,598.8
Brazil		10.1	%	1,932.4		1,654.8		1,252.8
Colombia		9.2	%	1,768.6		1,806.3		1,832.3
Ecuador		14.8	%	2,824.5		2,735.7		2,648.2
Panama		6.6	%	1,254.5		886.7		586.9
Paraguay		1.3	%	249.3		189.7		134.5
Peru		12.2	%	2,333.1		2.478.1		2,660.3
Uruguay		2.7	%	509.2		378.5		331.8
Venezuela		15.7	%	3,001.6		2,961.7		2,816.1
Other(1)		3.3	%	641.1		699.1		377.5
		100.0	%	19,142.0		18,000.7		16,353.9
Fair value adjustments on hedging activities				2.1		2.6		1.5
Total				19,144.1		18,003.3		16,355.4

(1) Principally loans outside the full member shareholder countries at December 31, 2014.

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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)
	2014		2013		2012		2014		2013		2012
	(in U.S.$ millions)
Argentina		674.0		1,099.7		839.3		560.0		585.0		464.0
Bolivia		625.2		684.4		485.1		322.2		322.7		338.1
Brazil		1,903.2		2,234.3		1,903.3		728.1		1,832.5		1,028.1
Colombia		1,552.0		1,563.3		840.6		1,080.7		1,146.4		855.0
Ecuador		799.7		842.8		766.0		636.8		660.7		736.4
Panama		298.8		324.8		328.2		419.9		326.1		255.9
Paraguay		181.1		430.6		188.6		96.0		73.0		46.9
Peru		2,414.9		2,644.3		1,749.1		525.3		1,402.7		617.5
Uruguay		753.6		585.6		728.6		243.9		108.4		9.4
Venezuela		474.7		417.1		327.0		276.4		365.2		358.8
Others(2)		2,047.1		1,274.1		1,118.9		1,218.2		618.5		258.6
Total		11,724.3		12,101.0		9,274.7		6,107.5		7,441.2		4,968.7

(1) Includes short-term loans in the amounts of $3,058.6 million, $4.602 million and $2,630.0 million for the years ended December 31, 2014, 2013 and 2012, respectively.

(2) Loans outside the full member shareholder countries at December 31, 2013.

During the year ended December 31, 2014, the increase (decrease) of loan portfolio by country compared to the year ended December 31, 2013 was as follows: Argentina, 10.6%; Bolivia, 9.0%; Brazil, 16.8%; Colombia, -2.1%; Ecuador, 3.2%; Panama, 41.5%; Paraguay 31.4%; Peru, -5.9%; Uruguay, 34.5%; and Venezuela, 1.3%. The growth of the loan portfolio reflects loan approvals as a result of the region’s 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 $641.1 million in 2014, compared to loans to associated shareholder countries holding Series “C” shares totaling $699.1 million and $377.4 million in 2013 and 2012, respectively. Management expects to increase loans to Trinidad and Tobago as a percentage of the total loan portfolio when Trinidad and Tobago fulfills the requirements to become a full member shareholder country.

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.

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Distribution of Loans by Industry

At December 31, 2014, our loan portfolio outstanding was distributed by industry as follows:

	Argentina		Bolivia		Brazil		Colombia		Ecuador		Panama		Paraguay		Peru		Uruguay		Venezuela		Others(2)		Total by Sector		% of Total
Agriculture, hunting and forestry		10.2		18.2		35.0		—		—		—		—		—		—		—		—		63.4		0.3	%
Exploitation of mines and quarries		—		—		—		—		—		—		—		—		—		—		—		—		0.0	%
Manufacturing industry		87.0		—		180.0		5.0		62.6		—		50.0		—		—		—		15.0		399.6		2.1	%
Supply of electricity, gas and water		1,535.2		395.5		296.6		155.3		313.8		180.5		20.3		408.0		333.4		2,775.3		199.8		6,613.7		34.6	%
Transport, warehousing and communications		822.8		1,211.9		948.0		531.4		722.1		923.1		87.3		1,392.7		162.4		166.6		122.9		7,091.2		37.0	%
Financial intermediaries(1)		10.0		105.6		255.0		659.7		54.9		39.8		18.4		292.5		—		3.6		323.5		1,763.0		9.2	%
Social and other infrastructure programs		252.8		178.3		97.1		417.3		1.641.4		11.1		73.3		239.8		—		56.2		79.9		3,047.3		15.9	%
Other activities		—		—		120.7		—		29.7		—		—		—		13.4		—		—		163.8		0.9	%
Total		2,718.0		1,909.5		1,932.4		1,768.7		2,824.6		1,154.5		249.3		2,333.0		509.2		3,001.7		741.1		19,142.0		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, 2013.

Maturity of Loans

At December 31, 2014, our outstanding loans were scheduled to mature as follows:

	2015		2016		2017		2018		2019		2020-2030
	(in U.S.$ millions)
Principal amount		2,717.5		2,140.3		1,919.1		1,713.7		1,815.1		8,836.3

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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, 2014:

Borrower	Amount		As a Percentage of Total Loan Portfolio
	(in U.S.$ millions)
Bolivarian Republic of Venezuela		3,001.6		15.7	%
Republic of Argentina		2,419.2		12.6	%
Republic of Ecuador		2,306.2		12.0	%
Plurinational State of Bolivia		1,772.3		9.3	%
Republic of Peru		1,665.5		8.7	%
Republic of Colombia		815.0		4.3	%
Republic of Panama		778.9		4.1	%
Estado de Rio de Janeiro		525.9		2.7	%
Panama Canal Authority		300.0		1.6	%
Bancolombia S.A.		278.5		1.5	%
Total		13,863.1		72.5	%

Selected Projects

Set out below are examples of projects approved by CAF during 2014 and the respective loan approval amounts.

Argentina

Republic of Argentina/Construction of Aqueduct Colorado River-Bahia Blanca — $150.0 million loan to finance the improvement of the current system for the supply of drinking water services in the Bahia Blanca city and in municipalities located in the province of Buenos Aires close to the city of Buenos Aires.

Bolivia

Plurinational State of Bolivia/Road Program Granados-La Palizada — $75.0 million loan to improve the road infrastructure for the integration of three departments in Bolivia: Cochabamba, Chuquisaca and Santa Cruz.

Brazil

Granol Industria/Corporate Loan — $75.0 million to finance investment projects and improvement of facilities for an agro-industry sector company.

Municipality of Fortaleza/Expansion of the infrastructure and touristic activity of Fortaleza — $250.0 million for the rehabilitation of urban infrastructure on Fortaleza´s historic quarter to develop tourism and improve the socioeconomic conditions of the citizens.

Colombia

Different Commercial Banks/Financial Lines for a total amount of $1,250.0 million to finance investment projects, working capital and investments in capital goods.

Ecuador

Republic of Ecuador/ New educational infrastructure program — $176.0 million loan to finance the inclusion of students in the modern and public educational system of Ecuador.

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Panama

Republic of Panama/Aqueducts and drainage system Program-PAYSAN — $100 million loan to improve the supply of basic services in the provinces of Chiriquí, Veraguas, Bocas del Toro and Panama.

Paraguay

Republic of Paraguay/Program for the improvement of roads in the eastern rural areas — $50.0 million loan to finance the improvement of roads in the eastern rural areas of Paraguay to promote access to social services for the population living in extreme poverty.

Peru

Different Commercial Banks/Financial and Corporate Lines for a total amount of $1,440.0 million to finance foreign trade operations, working capital and investments in capital goods.

Republic of Peru/Contingent Credit Line — $700 million loan to support the country’s financing needs in case of possible adverse natural events and for the government’s strategy for management of its public debt, to be used as a preventive instrument in the event it cannot access the international debt markets under conditions consistent with its strategy.

Uruguay

Oriental Republic of Uruguay/Non-revolving contingent line of credit — Renewal of a $400 million loan to support the national government’s strategy for management of its public debt, to be used as a preventive instrument in the event it cannot access the international debt markets under conditions consistent with its strategy.

Venezuela

Bolivarian Republic of Venezuela/Sanitation of Lake of Valencia — $100 million loan to improve the environmental quality in the Lake of Valencia and the water quality in the Pao-Cachinche reservoir, main supplier for the drinking water system in the Central Region.

Other Activities

Treasury Operations

Our investment policy requires that at least 90% 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, 2014, our liquid assets amounted to $10.1 billion of which 28.3% were invested in time deposits in financial institutions, 10.6% in commercial paper, 11.7% in corporate and financial institution bonds, 22.3% in certificates of deposit, 18.9% in U.S. Treasury Notes and 8.2% 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 company’s largest individual shareholder. In addition, the aggregate amount of our equity investments cannot exceed 10% of our shareholders’

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equity. At December 31, 2014, the carrying value of our equity investments totaled $292.3 million, representing 3.3% of our shareholders’ equity. At December 31, 2014, 70.5% 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 total equity. The amount of credit guarantees outstanding was $311.8 million at December 31, 2014. Those credit guarantees represent 3.56% of our total equity and include guarantees issued for a public sector project in Bolivia, a public sector project in Peru and for several private sector companies that are operating in Argentina, Brazil, Mexico, Peru and Uruguay.

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.

Fund Administration

In 2014, we acted as fund administrator for several funds funded by third parties and by our shareholders, the net assets of which totaled $508.6 million at December 31, 2014. CAF has no residual interest in the net assets of the special funds.

Each year, these funds were usually recapitalized by our shareholders through contributions made from CAF’s prior year’s net income. In 2013, 2012 and 2011, such contributions to these funds were $69.0 million, $120.0 million and $96.5 million from the net income of 2013, 2012 and 2011, respectively. These funds are not part of CAF’s accounts.

In 2014, our Board of Directors approved a change in the methodology for the allocation of resources to the funds. According to this adjustment, as of year-end 2015, the assignation of resources will be registered as expenses.

At December 31, 2014, the principal funds were the Technical Co-operation Fund, the Human Development Fund, the Compensatory Financing Fund, the Fund for the Development of Small and Medium Enterprises, the Latin American Carbon Program, the Fund for the Promotion of Sustainable Infrastructure Projects, and the Cross-Border Cooperation and Integration Fund.

Technical Co-operation Fund

At December 31, 2014, the Technical Co-operation Fund had a balance of $55.9 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.

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Human Development Fund

At December 31, 2014, the Human Development Fund had a balance of $15.6 million. This fund is devoted to assisting 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, 2014, the Compensatory Financing Fund had a balance of $330.7 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, 2014, the Fund for the Development of Small and Medium Enterprises had a balance of $ 54.8 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, 2014, the Latin American Carbon Program had a balance of $7.2 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.

Credit Policies

The Constitutive Agreement limits the total amount of disbursed and outstanding loans, guarantees and equity investments to 4.0 times stockholders’ equity. Our actual ratio on December 31, 2014 was 2.3 times stockholders’ 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 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 (a) loans of up to $75.0 million for sovereign credits, (b) loans of up to $50.0 million for private credits, (c) investments of up to $25.0 million in the case of equity investments, (d) investments of up to 1% of total liquid assets of any issuer (unless the issuer is: (i) at least investment grade, in which case the investment may be up to 5% of the issuer’s total liquid assets, (ii) a government or governmental institution with an investment grade rating of at least AA+, in which case the investment may be up to 7% of the issuer’s total liquid assets, or (iii) the US Treasury or the Bank for International Settlements, in which case CAF’s investment in notes, bills or bonds may be up to 50% of total liquid assets for each issuer), and (e) technical cooperation credits of up to $1.0 million. The Executive Committee of our Board of Directors or the Board of Directors itself may approve (a) loans of up to $150.0 million for sovereign credits, (b) loans of up to $80.0 million for private

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credits, (c) investments of up to $50.0 million for equity investments, (d) investments of up to 2.5% of the total liquid assets for any issuer (unless the issuer is: (i) at least investment grade, in which case the investment may be up to 10% of the issuer’s total liquid assets, or (ii) a government or governmental institution with an investment grade rating of at least AA+, in which case the investment may be up to 12% of the issuer’s total liquid assets), and (e) technical cooperation credits of up to $2.0 million. Loans and investments in excess of the aforementioned Executive Committee’s 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 25% 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 country’s 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 country’s 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. Additionally, the exposure to any individual private sector entity or to an economic group is limited to 2.35% and 3.5%, respectively, of our total loan portfolio.

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. Notwithstanding the above, the aggregate total of outstanding loans in all such countries may not exceed 15% of CAF’s total loan portfolio.

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; 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, 2014, there were $0.0 of loans overdue and $16.5 million of loans in non-accrual status. At December 31, 2013, there were $0.0 of overdue loans and $0.0 of loans in non-accrual status. For the years ended December 31, 2014 and 2013, there were $0.0 and $0.0, respectively, of overdue interest or other charges in respect of non-accrual status loans excluded from net income.

At December 31, 2014, there were $4.1 million of 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.

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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,
	2014			2013			2012
	(in U.S.$ millions)
Total loan portfolio		19,144.1			18,000.7			16,353.4
Overdue loan principal		—			—			—
Loans in non-accrual status		16.5			—			7.9
Loans written-off during period		4.1			4.1			—
Allowance for loan losses		55.8			38.3			125.8
Overdue principal payment as a percentage of loan portfolio (excluding non-accrual loans)		0,00	%		0,00	%		0.0	%
Non-accrual loans as a percentage of loan portfolio		0.09	%		0.00	%		0.05	%
Allowance for loan losses as a percentage of loan portfolio		0.3	%		0.2	%		0.8	%

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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,
	2014			2013		2012
	(in U.S.$ millions)
Within the shareholder countries:
Term deposits		3,696.5			3,263.7		3,121.8
Loans and lines of credit		57.1			46.7		26.6
Bonds		243.0			349.8		450.6
		3,992.9			3,660.2		3,599.0
Outside the shareholder countries:
Deposits, acceptances and advances, commercial paper and repurchase agreements		1,853.3			2,936.5		3,174.9
Loans and lines of credit		1,444.1			1,576.2		1,346.2
Bonds		13,645.5			10,622.6		8,601.7
		16,946.6			15,135.3		13,122.8
		20,939.5			18,795.5		16,721.8
Variation effect between spot and original FX rate		(719.2	)		60.3		111.6
Fair value adjustments on hedging activities		704.1			165.8		597.4
Total		20,924.4			19,021.6		17,430.8

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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,
	2014			2013		2012
	(in U.S.$ millions)
Term deposits:
Up to 1 year		3,696.5			3,263.7		3,121.8
Acceptances, advances and commercial paper and repurchase agreements:
Up to 1 year		1,853.3			2,936.5		3,174.9
Loans and lines of credit:
Up to 1 year		246.0			467.8		103.0
Between 1 and 3 years		547.1			479.7		703.6
Between 3 and 5 years		297.9			261.1		258.6
More than 5 years		410.2			414.3		307.7
		1,501.2			1,622.9		1,372.9
Bonds:
Up to 1 year		1,264.5			942.4		763.7
Between 1 and 3 years		3,647.5			2,826.7		2,011.2
Between 3 and 5 years		2,252.4			2,203.9		2,037.0
More than 5 years		6,724.1			4,999.4		4,240.4
		13,888.5			10,972.4		9,052.3
Totals:
Up to 1 year		7,060.3			7,610.4		7,163.4
Between 1 and 3 years		4,194.7			3,306.4		2,714.8
Between 3 and 5 years		2,550.2			2,465.0		2,295.6
More than 5 years		7,134.3			5,413.7		4,548.1
		20,939.5			18,795.5		16,721.9
Variation effect between spot and original FX rate		(719.2	)		60.3		111.6
Fair value adjustments on hedging activities		704.1			165.8		597.4
Total		20,924.4			19,021.6		17,430.9

Our financial liabilities are primarily U.S. dollar-based: 63.2% of our total financial liabilities, or 99.0% of financial liabilities after swaps, were denominated in U.S. dollars at December 31, 2014. The principal amount of non-U.S. dollar financial liabilities outstanding at December 31, 2014 included 2,658.7 million Euros, 35,200.0 million Yen, 1,930.0 million Swiss Francs, 1.1 million Canadian Dollars, 221,750.0 million Colombian Pesos, 2,995.0 million Hong Kong Dollars, 1,335.1 million Mexican Pesos, 172.0 million Peruvian Nuevos Soles, and 600 million Chinese Yuan; all of these non-U.S. dollar financial liabilities are swapped or otherwise hedged into U.S. dollars.

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.

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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, 2014, 99.8% 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 the time of entering into the swap agreement. At December 31, 2014, we were party to swap agreements with an aggregate notional amount of $13.6 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, 2014, the weighted average life of our financial assets was 4.1 years and the weighted average life of our financial liabilities was 5.2 years. Based on our asset and liability structure at December 31, 2014, 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, 2014, approximately 99.8% of our assets and 63.2% of our liabilities were denominated in U.S. dollars, with the remainder of our liabilities being denominated principally in Euro, Yen, Hong Kong Dollar, Chinese Yuan and Swiss Francs, which liabilities were swapped. After swaps, 99.0% 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 Note 20 (“Derivative Financial Instruments and Hedging Activities”) to our audited financial statements in this prospectus.

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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) constitutes special funds for particular purposes;

(3) elects the Board of Directors according to the Constitutive Agreement;

(4) appoints external auditors;

(5) determines compensation for the Board of Directors and the external auditors; and

(6) 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 18 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

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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.

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	Axel Kicillof (Julio Miguel De Vido)	Minister of Economics and Public Finance (Minister of Federal Planning, Public Investments and Services)
Bolivia	René Gonzalo Orellana Halkyer (Harley Rodríguez Téllez)	Minister of Development Planning (Vice Minister of Public Investment and External Financing)
Brazil	Nelson Barbosa (Claudio Alberto Castelo Branco Puty)	Minister of Planning, Budget and Process (Secretary of International Affairs from the Ministry of Planning, Budget and Process)
Colombia	Mauricio Cardenas (Cecilia Álvarez Correa)	Minister of Treasury and Public Credit (Minister of Commerce, Industry and Tourism)
Ecuador	María Soledad Barrera	President of the Board of Directors of Corporación Financiera Nacional
	(Xavier Reyes)	(Sub-General Manager of Corporación Financiera Nacional)
Panama	Dulcidio de La Guardia (Iván Zarak)	Minister of Economics and Finance (Vice Minister of Finance)
Paraguay	Santiago Peña Palacios (Daniel Correa)	Minister of Treasury (Vice Minister of Economy)
Peru	Alonso Segura Vasi (Carlos Augusto Oliva Neyra)	Minister of Economy and Finance (Vice Minister of Treasury)
Uruguay	Danilo Astori (Mario Bergara)	Minister of Economy and Finance (President of Banco Central del Uruguay)
Venezuela	Rodolfo Marco Torres	Minister of the Popular Power of Economy, Finance and Public Banking
	(Simón Alejandro Zerpa Delgado)	(President of Banco de Desarrollo Económico y Social of Venezuela — BANDES)

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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	General Manager of Banco de la República
	(Simón Gaviria)	(General Director of the National Planning Department)
Ecuador	Fausto Herrera	Minister of Finance
	(Mateo Villalba)	(President of the Board of Directors of Banco Central del Ecuador)
Peru	Jorge Luis Ramos	General Manager of Corporación Financiera de Desarrollo (COFIDE)
	(José Gasha)	(Vice Minister of Economy)
Venezuela	Simón Alejandro Zerpa Delgado	President of Banco de Desarrollo Económico y Social of Venezuela — BANDES
	(Vanessa Avendaño)	(Executive Vice President of Banco de Desarrollo Económico y Social of Venezuela — BANDES)
Private Financial Institutions	Francisco Ortega	President of the Board of Directors of Banco del Pacífico S.A. del Ecuador
	(Carlos González-Taboada)	(Vice President of the Board of Directors and General Manager of Scotiabank Peru)

The directors representing the Series “C” shareholders are Luis de Guindos Jurado, Minister of Economy and Competitiveness for Spain and Luis Videgaray, Secretary of Treasury and Public Credit for Mexico. Their alternates are Simón Lizardo Mezquita, Minister of Treasury for the Dominican Republic, and Eduardo Bitran Colodro, Executive Vice President of Corporación de Fomento de la Producción 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. Rodolfo Marco Torres is the current Chairman until March 31, 2016.

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 CAF’s 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 November 2011 for a fifth five-year term that will expire in December 2016. 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

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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
Gustavo Ardila	Corporate Vice President of Productive and Financial Sectors
Hamilton Moss de Souza	Corporate Vice President of Energy
Hugo Sarmiento Kohlenberger	Corporate Vice President of Finance and Chief Financial Officer
José Carrera	Corporate Vice President of Social Development
Ricardo Sigwald	General Counsel
Marcelo Zalles	Controller

Employees

At December 31, 2014, we employed 486 professionals and 115 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 Productive and Financial Sectors, Vice President of Development Strategies and Public Policies, Vice President of Social and Environmental Development, and Vice President of Energy 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 is 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 CAF’s employees to be good. There is no employee union and there have been no strikes in the history of CAF.

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THE FULL MEMBER SHAREHOLDER COUNTRIES

Certain of the following information has been extracted from publicly available sources. We have not independently verified this information.

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:

	Argentina			Bolivia			Brazil			Colombia			Ecuador			Panama			Paraguay			Peru			Uruguay			Venezuela
Population (in millions)(1)
2014		41.8			10.8			202.0			48.9			16.0			3.9			6.9			30.8			3.4			30.9
2013		41.4			10.7			200.4			48.3			15.7			3.9			6.8			30.4			3.4			30.4
2012		41.1			10.5			198.7			47.7			15.5			3.8			6.7			30.0			3.4			30.0
	Argentina			Bolivia			Brazil			Colombia			Ecuador			Panama			Paraguay			Peru			Uruguay			Venezuela
GDP (U.S.$) in millions)(2)
2014		540,164			34,425			2353,025			384,901			100,755			43,784			29,704			202,948			55,143			205,787
2013		622,054			30,824			2391,029			378,415			94,473			40,393			28,334			202,394			55,708			218,433
2012		607,596			27,265			2412,024			369,789			87,623			35,938			24,937			192,73			50,005			298,38
GDP per capita (U.S.$)(2)
2014		12,873.16			3,061.00			11,604.47			8,075.64			6,286.43			11,147.32			4,304.56			6,458.29			16,198.55			6,756.62
2013		14,992.20			2,792.90			11,893.71			8,030.72			5,988.86			10,489.60			4,175.51			6,540.28			16,421.39			7,284.71
2012		14,809.15			2,517.32			12,106.00			7,938.46			5,645.48			9,488.60			3,736.95			6,324.50			14,791.87			10,108.76
Gross reserves (excluding gold) (U.S.$ in millions)(1)(3)
2014		29,016.97			13,480.89			360,964.73			46,408.09			3,484.14			4,032.20			6,668.90			61,185.27			17,544.79			—
2013		28,143.04			12,782.73			356,214.15			42,757.94			3,328.04			2,847.99			5,555.58			64,423.24			16,270.62			6,038.03
2012		39,920.30			11,659.29			369,565.97			36,444.02			1,079.96			2,466.27			4,556.61			62,300.32			13,590.87			9,900.15
Customer price index growth(1)(3)
2014		24.0	%		5.2	%		7.2	%		3.7	%		4.2	%		2.6	%		4.2	%		3.2	%		8.3	%		68.5	%
2013		11.0	%		6.5	%		5.9	%		1.9	%		2.7	%		4.0	%		3.7	%		2.9	%		8.5	%		52.7	%
2012		10.8	%		4.5	%		5.8	%		2.4	%		4.6	%		5.7	%		4.0	%		2.6	%		7.5	%		19.5	%
	Argentina			Bolivia			Brazil			Colombia			Ecuador			Panama			Paraguay			Peru			Uruguay			Venezuela
Exports of Goods (f.o.b.) (U.S.$ in millions)(1)(4)
2014		71,935.0			12,265.8			220,297.2			56,982.0			26,604.0			26,300.1			13,116.8			39,326.4			10,420.6			74,846.0
2013		81,660.0			11,656.7			242,200.0			60,281.1			25,685.0			27,010.2			13,604.7			42,474.2			10,317.4			88,962.0
2012		80,246.0			11,814.6			242,580.0			61,604.1			23,632.0			28,159.5			11,653.6			46,366.6			9,915.8			97,340.0
Import of Goods (f.o.b.) (U.S.$ in millions)(1)(4)
2014		65,249.0			10,534.5			229,060.1			61,676.1			26,672.3			28,455.7			12,079.2			40,806.5			11,433.7			39,040.0
2013		70,541.0			9,337.7			239,600.0			57,100.9			26,175.8			28,928.4			11,942.4			42,216.6			11,596.0			53,023.0
2012		65,088.0			8,590.1			223,142.0			56,648.3			24,806.0			29,878.3			11,082.8			41,135.0			12,277.0			59,339.0

(1) This information is extracted from the World Bank’s World Development Indicators (WDI) and the Statistical Year Book 2013 of Economic Commission for Latin America and Caribbean (ECLAC).

(2) Source: IMF database April 2015

(3) End of period.

(4) Free on Board.

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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 security’s “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.

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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 depositary’s 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.

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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 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

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(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.

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 66 2/3% 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 CAF deems 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 for such securities 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, provided that any new debt

44

securities would be treated as fungible with the original debt securities for United States federal income tax purposes. If such additional notes are not fungible with the original debt securities for United States federal income tax purposes, the additional notes will be issued under a separate CUSIP number.

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 C T 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 any state or federal court in the Borough of Manhattan, The City of New York. C T 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.

45

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.

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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,

• a trader in securities that elects to use a mark-to-market method of accounting for your securities holdings,

• a bank,

• 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,

• a person that purchases or sells debt securities as part of a wash sale 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 (or with original issue discount that is less than the applicable de minimis threshold) 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.

47

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 trust’s 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 for purposes of 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 attributable to accrued but unpaid interest (which will be treated as interest payments), 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. 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, is subject to a 3.8% tax on the lesser of (1) the United States holder’s “net investment income” (or “undistributed net investment income” in the case of an estate or trust) for the relevant taxable year and (2) the excess of the United States holder’s modified adjusted gross income for the taxable year over a certain threshold (which in the case of individuals is between $125,000 and $250,000, depending on the individual’s circumstances). A holder’s net investment income generally includes its interest

48

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, or are a corporation with a principal business of trading in stocks and securities for its own account.

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.

Information with Respect to Foreign Financial Assets

Owners of “specified foreign financial assets” with an aggregate value in excess of $50,000 (and in some circumstances, a higher threshold) may be required to file an information report with respect to such assets with their tax returns. “Specified foreign financial assets” may include financial accounts maintained by foreign financial institutions, as well as any of the following, but only if they are held for investment and not held in accounts maintained by financial institutions: (i) stocks and securities issued by non-United States persons,

49

(ii) financial instruments and contracts that have non-United States issuers or counterparties, and (iii) interests in foreign entities. Holders are urged to consult their tax advisors regarding the application of this reporting requirement 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 may 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 holder’s 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 W-8BEN-E 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,

• the payment of proceeds or the confirmation of the sale is mailed to you at a United States address, or

50

• 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.

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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.

CAF may offer the securities of any series to present holders of other securities of CAF as consideration for the purchase or exchange by CAF of other securities. This offer may be in connection with a publicly announced tender, exchange or other offer for these securities or in privately negotiated transactions. This offering may be in addition to or in lieu of sales of securities directly or through underwriters or agents as set forth in the applicable prospectus supplement.

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.

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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 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.

EXPERTS

The financial statements as of and for the years ended December 31, 2014, 2013 and 2012 included in this Prospectus and management’s assertion that CAF maintained effective internal control over financial reporting, have been audited by Lara Marambio & Asociados, a member firm of Deloitte Touche Tohmatsu Limited, independent auditors, as stated in their reports appearing herein. Such financial statements are included in reliance upon the reports of such firm given upon their authority 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 SEC’s website: http://www.sec.gov. You may also read and copy these documents at the Securities and Exchange Commission’s 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 Executive President of CAF, in his duly authorized capacity as Executive President.

CORPORACIÓN ANDINA DE FOMENTO
By:	/s/ L. ENRIQUE GARCÍA
	Name: L. Enrique García
	Title: Executive President

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CORPORACIÓN ANDINA DE FOMENTO (CAF)

Index to Financial Statements

	Page
Management’s Report on the Effectiveness of Internal Control Over Financial Reporting		F-2
Independent Accountants’ Report on Management’s Assertion on Effectiveness of Internal Control Over Financial Reporting		F-3
Independent Auditors’ Report		F-5
Balance Sheets		F-7
Statements of Comprehensive Income		F-8
Statements of Stockholders’ Equity		F-9
Statements of Cash Flows		F-10
Notes to the Financial Statements		F-11

F-1

Management’s 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 CAF’s internal control over financial reporting as of December 31, 2014, based on the criteria for effective internal control determined in the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).

CAF’s 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 entity’s 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 entity’s assets that could have a material effect on the financial statements.

Management has assessed the effectiveness of CAF’s internal control over financial reporting as of December 31, 2014. Based on this assessment, CAF’s Management concluded that CAF’s internal control over financial reporting was effective as of December 31, 2014.

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. Furthermore, because of changes in conditions, the effectiveness of internal control may vary over time.

CAF’s financial statements as of December 31, 2014, have been audited by an independent accounting firm, which has also issued an attestation report on management’s assertion on the effectiveness of CAF’s internal control over financial reporting. The attestation report, which is included in this document, expresses an unmodified opinion on management’s assertion on the effectiveness of CAF’s internal control over financial reporting as of December 31, 2014.

/s/ L. Enrique García	/s/ Hugo Sarmiento K.
Executive President and Chief Executive Officer	Corporate Vice President of Finance, Chief Financial Officer

/s/ Marcos Subía G.

Director, Accounting and Budget

January 30, 2015

Torre CAF, Av. Luis Roche, Altamira, Caracas, Venezuela. Telf. +58 (212) 209 2111 www.caf.com

F-2

	Lara Marambio & Asociados
	RIF J-00327665-0
	Torre B.O.D., Piso 21 Av. Blandín, La Castellana
	Caracas 1060 — Venezuela
	Telf: +58 (212) 206 8501 Fax: +58 (212) 206 8870 www.deloitte.com/ve

Independent Auditors’ Report on Management’s Assertion on

Effectiveness of Internal Control over Financial Reporting

To the Board of Directors and Stockholders of

Corporación Andina de Fomento (CAF)

We have audited management’s assertion, included in the accompanying Management’s 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, 2014, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). CAF’s management is responsible for maintaining effective internal control over financial reporting and for its assertion of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on the Effectiveness of Internal Control Over Financial Reporting. Our responsibility is to express an opinion on management’s assertion based on our audit.

We conducted our audit in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit 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 audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

An entity’s 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 accounting principles generally accepted in the United States of America. An entity’s 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 accounting principles generally accepted in the United States of America, 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 entity’s assets that could have a material effect on the financial statements.

Because of the inherent limitations of internal control over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may not be prevented or detected and corrected on a timely basis. Also, projections of any evaluation of effectiveness of the internal control over financial reporting 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.

F-3

In our opinion, management’s assertion that CAF maintained effective internal control over financial reporting as of December 31, 2014 is fairly stated, in all material respects, based on the criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

We have also audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements as of and for the year ended December 31, 2014 of CAF and our report dated January 30, 2015 expressed an unmodified opinion on those financial statements.

/s/ Deloitte

January 30, 2015

Caracas — Venezuela

Lara Marambio & Asociados. A member firm of Deloitte Touche Tohmatsu Limited.

www.deloitte.com/ve

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

	Lara Marambio & Asociados
	RIF J-00327665-0
	Torre B.O.D., Piso 21 Av. Blandín, La Castellana
	Caracas 1060 — Venezuela
	Telf: +58 (212) 206 8501 Fax: +58 (212) 206 8870 www.deloitte.com/ve

Independent Auditors’ Report

To the Board of Directors and Stockholders of

Corporación Andina de Fomento (CAF)

We have audited the accompanying financial statements of Corporación Andina de Fomento (CAF), which comprise the balance sheets as of December 31, 2014, 2013 and 2012, and the related statements of comprehensive income, stockholders’ equity, and cash flows for the years then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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 involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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, 2014, 2013 and 2012, and the results 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.

F-5

Report on Management’s Assertion on Effectiveness of Internal Control over Financial Reporting

We have also audited, in accordance with attestation standards established by the American Institute of Certified Public Accountants, management’s assertion that CAF maintained effective internal control over financial reporting as of December 31, 2014, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and our report dated January 30, 2015 expressed an unmodified opinion on the Management’s assertion on effectiveness of internal control over financial reporting.

/s/ Deloitte

January 30, 2015

Caracas — Venezuela

Lara Marambio & Asociados. A member firm of Deloitte Touche Tohmatsu Limited.

www.deloitte.com/ve

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-6

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Balance Sheets

December 31, 2014, 2013 and 2012

(In thousands of U.S. dollars)

	NOTES	2014		2013			2012
ASSETS
Cash and due from banks	3		141,147		230,051			141,720
Deposits with banks	3		1,279,267		1,462,208			1,490,049
Cash and deposits with banks			1,420,414		1,692,259			1,631,769
Marketable securities:
Trading	5 and 21		7,130,791		5,831,244			5,453,137
Other investments	4		1,596,608		781,219			100,910
Loans (US$ 21,954, US$ 48,358, and US$ 72,354 at fair value as of December 31, 2014, 2013 and 2012)	6 and 21		19,144,087		18,003,271			16,355,410
Less loan commissions, net of origination costs			89,411		80,373			76,837
Less allowance for loan losses	6		55,763		38,336			125,799
Loans, net			18,998,913		17,884,562			16,152,774
Accrued interest and commissions receivable			292,325		242,153			216,323
Equity investments	7		292,345		228,385			146,811
Derivative financial instruments	20 and 21		383,703		417,658			772,448
Property and equipment, net	8		69,003		66,899			62,656
Other assets	9		310,538		273,931			281,507
TOTAL			30,494,640		27,418,320			24,818,335
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Deposits	10		3,696,510		3,263,674			3,121,843
Commercial paper	11		1,853,282		2,936,496			3,174,927
Borrowings (US$ 432,617, US$ 495,947, and US$ 341,553 at fair value as of December 31, 2014, 2013 and 2012)	12 and 21		1,514,646		1,628,863			1,391,093
Bonds (US$ 13,124,319, US$ 10,659,931, and US$ 9,595,784 at fair value as of December 31, 2014, 2013 and 2012)	13 and 21		13,859,940		11,192,501			9,742,852
Accrued interest payable			239,547		200,013			180,597
Derivative financial instruments	20 and 21		383,086		182,824			60,067
Accrued expenses and other liabilities	14		184,393		197,400			281,894
Total liabilities			21,731,404		19,601,771			17,953,273
STOCKHOLDERS’ EQUITY:	16 and 18
Subscribed and paid-in capital (authorized capital US$10,000 million)			4,250,495		3,941,380			3,636,715
Additional paid-in capital			1,911,487		1,342,903			782,523
Reserves			2,463,583		2,325,826			2,285,655
Other comprehensive income			32		(317	)		—
Retained earnings			137,639		206,757			160,169
Total stockholders’ equity			8,763,236		7,816,549			6,865,062
TOTAL			30,494,640		27,418,320			24,818,335

See accompanying notes to the Financial Statements

F-7

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Statements of Comprehensive Income

Years ended December 31, 2014, 2013 and 2012

(In thousands of U.S. dollars)

	NOTES	2014		2013			2012
Interest income:
Investments and deposits with banks	2(e), 3 and 4		44,211		22,364			52,315
Loans	2(f)		481,970		446,609			440,957
Loan commissions	2(f)		43,479		39,274			26,867
Total interest income			569,660		508,247			520,139
Interest expense:
Deposits			11,377		16,607			23,027
Commercial papers			6,459		18,096			12,183
Borrowings			21,533		18,856			17,354
Bonds			252,258		227,479			214,976
Commissions			18,597		16,255			14,148
Total interest expense			310,224		297,293			281,688
Net interest income			259,436		210,954			238,451
Provision (credit) for loan losses	6		21,552		(83,417	)		(4,865	)
Net interest income, after provision (credit) for loan losses			237,884		294,371			243,316
Non-interest income:
Other commissions			9,070		7,415			6,150
Dividends and equity in earnings of investees	7		8,893		4,801			2,649
Other income			4,998		3,687			482
Total non-interest income			22,961		15,903			9,281
Non-interest expenses:
Administrative expenses	24		116,678		103,997			90,988
Impairment charge for equity investments	7		7,307		—			—
Other expenses			696		1,649			863
Total non-interest expenses			124,681		105,646			91,851
Net income before unrealized changes in fair value related to financial instruments			136,164		204,628			160,746
Unrealized changes in fair value related to financial instruments	22		1,475		2,129			(577	)
Net income			137,639		206,757			160,169
Other comprehensive income
Unrecognized changes in assets/liabilities under benefit pension plan	15 and 18		32		(317	)		—
Amortization of defined benefit pension items	15 and 18		317		—			—
Total comprehensive income			137,988		206,440			160,169

See accompanying notes to the Financial Statements

F-8

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Statements of Stockholders’ Equity

Years ended December 31, 2014, 2013 and 2012

(In thousands of U.S. dollars)

	NOTES	Subscribed and paid-in capital		Additional paid-in capital			Reserves						Other comprehensive income			Retained earnings			Total stockholder’ equity
							General reserve		Article N° 42 of by-laws		Total reserves
BALANCES AT DECEMBER 31, 2011			3,229,365		739,733			1,830,742		398,834		2,229,576		—			152,579			6,351,253
Capital increase	16		159,030		291,110			—		—		—		—			—			450,140
Capitalization of Additional paid-in capital	16		248,320		(248,320	)		—		—		—		—			—			—
Net income	16		—		—			—		—		—		—			160,169			160,169
Appropriated for general reserve	16		—		—			40,779		—		40,779		—			(40,779	)		—
Appropriated for reserve pursuant to Article N° 42 of by-laws	16		—		—			—		15,300		15,300		—			(15,300	)		—
Other comprehensive income	18		—		—			—		—		—		—			—			—
Distributions to stockholders’ funds	17		—		—			—		—		—		—			(96,500	)		(96,500	)
BALANCES AT DECEMBER 31, 2012			3,636,715		782,523			1,871,521		414,134		2,285,655		—			160,169			6,865,062
Capital increase	16		304,665		560,380			—		—		—		—			—			865,045
Net income	16		—		—			—		—		—		—			206,757			206,757
Appropriated for general reserve	16		—		—			24,071		—		24,071		—			(24,071	)		—
Appropriated for reserve pursuant to Article N° 42 of by-laws	16		—		—			—		16,100		16,100		—			(16,100	)		—
Other comprehensive income	18		—		—			—		—		—		(317	)		—			(317	)
Distributions to stockholders’ special funds	17		—		—			—		—		—		—			(119,998	)		(119,998	)
BALANCES AT DECEMBER 31, 2013			3,941,380		1,342,903			1,895,592		430,234		2,325,826		(317	)		206,757			7,816,549
Capital increase	16		309,115		568,584			—		—		—		—			—			877,699
Net income	16		—		—			—		—		—		—			137,639			137,639
Appropriated for general reserve	16		—		—			116,557		—		116,557		—			(116,557	)		—
Appropriated for reserve pursuant to Article N° 42 of by-laws	16		—		—			—		21,200		21,200		—			(21,200	)		—
Other comprehensive income	18		—		—			—		—		—		349			—			349
Distributions to stockholders’ special funds	17		—		—			—		—		—		—			(69,900	)		(69,900	)
BALANCES AT DECEMBER 31, 2014			4,250,495		1,911,487			2,012,149		451,434		2,463,583		32			137,639			8,763,236

See accompanying notes to the Financial Statements

F-9

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Statements of Cash Flows

Years ended December 31, 2014, 2013 and 2012

(In thousands of U.S. dollars)

	NOTES	2014			2013			2012
OPERATING ACTIVITIES:
Net income			137,639			206,757			160,169
Adjustments to reconcile net income to net cash used in operating activities:
Unrealized (gain) on trading securities	5		3,038			(5,025	)		(11,320	)
Amortization of loan commissions, net of origination costs			(12,085	)		(12,413	)		(10,677	)
Provision (credit) for loan losses	6		21,552			(83,417	)		(4,865	)
Impairment charge for equity investments	7		7,307			—			—
Equity in earnings of investees			127			244			1,067
Amortization of deferred charges			3,811			2,900			2,799
Depreciation of property and equipment	8		5,974			5,554			3,924
Provision for employees’ severance indemnities and benefits			9,345			8,339			7,745
Provision for employees’ savings plan			1,335			1,281			1,286
Unrealized changes in fair value related to financial instruments			(1,475	)		(2,129	)		577
Net changes in operating assets and liabilities:
Severance indemnities paid or advanced			(6,650	)		(4,869	)		(5,013	)
Employees’ savings plan paid or advanced			(955	)		(113	)		(379	)
Trading securities, net	5		(1,302,585	)		(373,082	)		(1,681,492	)
Interest and commissions receivable			(50,172	)		(25,830	)		(20,007	)
Other assets			(40,407	)		4,411			(33,824	)
Accrued interest payable			39,534			19,416			17,036
Accrued expenses and other liabilities			(16,082	)		(89,449	)		8,894
Total adjustments and net changes in operating assets and liabilities			(1,338,388	)		(554,182	)		(1,724,249	)
Net cash used in operating activities			(1,200,749	)		(347,425	)		(1,564,080	)
INVESTING ACTIVITIES:
Purchases of other investments	4		(3,773,803	)		(1,132,019	)		(236,168	)
Maturities of other investments	4		2,958,414			451,710			230,469
Loan origination and principal collections, net	6		(1,128,961	)		(1,638,784	)		(1,364,921	)
Equity investments, net	7		(71,394	)		(81,818	)		(35,989	)
Purchases of property and equipment	8		(8,078	)		(9,786	)		(19,889	)
Net cash used in investing activities			(2,023,822	)		(2,410,697	)		(1,426,498	)
Carried forward,			(3,224,571	)		(2,758,122	)		(2,990,578	)
Brought forward,			(3,224,571	)		(2,758,122	)		(2,990,578	)
FINANCING ACTIVITIES:
Net increase in deposits			432,836			141,831			(550,220	)
Net decrease in commercial paper			(1,083,214	)		(238,431	)		1,197,877
Proceeds from issuance of bonds	13		3,855,856			2,716,572			2,337,449
Repayment of bonds	13		(939,731	)		(796,450	)		(768,355	)
Proceeds from borrowings	12		267,697			376,961			384,795
Repayment of borrowings	12		(389,417	)		(126,918	)		(133,521	)
Distributions to stockholders’ special funds	17		(69,000	)		(119,998	)		(96,500	)
Proceeds from issuance of shares	16		877,699			865,045			450,140
Net cash provided by financing activities			2,952,726			2,818,612			2,821,665
NET (DECREASE) IN CASH AND DEPOSITS WITH BANKS			(271,845	)		60,490			(168,913	)
CASH AND DEPOSITS WITH BANKS AT BEGINNING OF YEAR			1,692,259			1,631,769			1,800,682
CASH AND DEPOSITS WITH BANKS AT END OF YEAR			1,420,414			1,692,259			1,631,769
Supplemental disclosure:
Interest paid during the year			238,147			269,543			239,221
NONCASH FINANCING ACTIVITIES:
Changes in derivative financial instruments assets			(33,955	)		(354,790	)		69,184
Changes in derivative financial instruments liabilities			200,262			122,757			(33,802	)

See accompanying notes to the Financial Statements

F-10

1. ORIGIN

Business description – Corporación Andina de Fomento (CAF) began its operations on June 8, 1970, and was established under public international law which abides by the provisions set forth in its by-laws. Series “A” and “B” stockholder countries are: Argentina, Bolivia, Brazil, Colombia, Ecuador, Panama, Paraguay, Peru, Uruguay and Venezuela. Series “C” stockholder countries are: Chile, Costa Rica, Dominican Republic, Jamaica, Mexico, Portugal, Spain and Trinidad and Tobago. In addition, there are 13 banks which are Series “B” stockholders. CAF is headquartered in Caracas and has offices in Asuncion, Bogota, Brasilia, Buenos Aires, Ciudad de Mexico, Ciudad de Panama, La Paz, Lima, Madrid, Montevideo, Puerto Principe and Quito.

CAF’s objective is to support sustainable development and economic integration within Latin America and the Caribbean by helping stockholder countries diversify their economies, and become more competitive and responsive to social needs.

CAF offers financial and related services to the governments of its stockholder countries, as well as their public and private institutions, corporations and joint ventures. CAF’s 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 stockholder countries. Furthermore, CAF manages and supervises third-party cooperation funds of other countries and organizations, destined to finance programs agreed upon with donor organizations which are in line with CAF policies and strategies.

CAF raises funds to finance operations both within and outside its stockholder countries.

2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

a. Financial Statement Presentation – The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles with the U.S. dollar as the functional currency.

Certain amounts in the 2013 and 2012 financial statements have been reclassified to conform to the current year’s presentation.

b. Use of estimates – The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, as well as the amounts reported as revenues and expenses during the corresponding reporting period. The most important estimates related to the preparation of CAF’s financial statements refer to revenue recognition, valuation and classification at fair values of financial instruments, and estimating the allowance for loan losses, among others. Management believes these estimates are adequate. Actual results could differ from those estimates.

c. Transactions in other currencies – Transactions in currencies other than U.S. dollars are converted into U.S. dollars at exchange rates prevailing in international markets on the dates of the transactions. Currency balances other than U.S. dollars are converted into U.S. dollars at year-end exchange rates. Any foreign exchange gains or losses, including related hedge effects, are included in the statement of comprehensive income.

d. Cash and Cash Equivalents – Cash and cash equivalents comprised of cash, due from banks and short-term deposits with an original maturity of three months or less.

e. Marketable Securities – CAF classifies its investments, according to management intention, as trading marketable securities, which are recorded on the trade date. Trading securities are mainly bought and held with the purpose of selling them in the short term. Trading securities are recorded at fair value. Gains and losses, from sales of trading securities and changes in the fair value of trading securities are included in interest income of investments and deposits with banks in the statements of comprehensive income.

F-11

f. Loans – CAF grants short-, medium- and long-term loans to finance projects, working capital, trade activities and to undertake feasibility studies for investment opportunities, both to public and private entities, for development and integration programs and projects in stockholder countries.

For credit risk purposes, CAF classifies its portfolio into sovereign and non-sovereign.

Sovereign loans – Include loans granted to national, regional or local governments or decentralized institutions and other loans fully guaranteed by national governments.

Non-sovereign loans – Include loans granted to corporate and financial sectors, among others, which are not guaranteed by national governments (public and private sectors).

Loans are carried at their outstanding principal balances less: (i) write-offs, (ii) the allowance for loan losses, and (iii) loan commission fees received upon origination net of certain direct 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 comprehensive 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 loan is well-secured and in process of collection.

Interest accrued but not collected for loans that are placed on non-accrual is reversed against interest income. The interest on non-accrual loans is accounted for on a cash-basis, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Non-accrual loans are considered impaired loans. Factors considered by management in determining impaired loans are payments status and the probability of collecting scheduled principal and interest payments when due.

Loan losses, partial or total, are written off against the allowance for loan losses when management confirms the uncollectibility of a loan balance. Subsequent recoveries on written off loans, if any, will be credited to the allowance for loan losses.

CAF maintains risk exposure policies to avoid concentrating its loan portfolio in one country or specific economic group, which might be affected by market situations or other circumstances. For this reason, CAF uses certain measurement parameters, such as: CAF’s stockholders’ equity, total loan portfolio, economic groups from public and private sectors, among others. CAF reviews, on semi-annual basis, the credit risk rating of its loans and classifies the risk into the following categories:

Satisfactory-excellent – Extremely strong capacity to meet financial commitments.

Satisfactory-very good – Strong capacity to meet financial commitments, not significantly vulnerable to adverse economic conditions.

Satisfactory adequate – Adequate capacity to meet financial commitments, but more vulnerable to adverse economic conditions.

Watch – Acceptable payment capacity, however some indicators and elements require special attention otherwise they could result in impairment.

Special mention – More vulnerable to adverse economic conditions but currently has the capacity to meet financial commitments.

Sub-standard – Currently vulnerable and dependent on favorable economic conditions to meet financial commitments.

Doubtful – Currently highly vulnerable.

Loss – Payment default on financial commitments.

F-12

g. Allowance for Loan Losses – Allowance for loan losses is maintained at a level CAF believes to be adequate to absorb losses inherent in the loan portfolio as of the date of the financial statements.

For purposes of determining the allowance for loan losses, CAF management classifies its portfolio for credit risk purposes into sovereign and non-sovereign. The allowance for loan losses is estimated considering the credit risk exposure, default probability and, beginning December 31, 2013, loss given default, based on external data provided by risk rating agencies, recognizing such effects in profit or loss for the period.

The allowance for loan losses on sovereign loans is established by CAF based on the individual long-term foreign currency debt rating of the borrower countries, which is determined as the average rating of three recognized international risk rating agencies as of the date of the financial statements. The long-term foreign currency debt rating considers a default probability. Given CAF’s status as a preferred creditor and taking into account the immunities and privileges conferred by its stockholder countries, which are established in CAF’s by-laws and other similar agreements, a factor reflecting a lower default probability — usually equivalent to three levels above its risk rating — is used.

For the non-sovereign loan portfolio, the allowance for loan losses is based on the individual local currency debt rating of the borrower countries, which is determined as the average rating of the aforementioned risk rating agencies. As of December 31, 2013, by virtue of the change in the determination of the allowance for loan losses, the allowance for loan losses is calculated by considering CAF’s internal rating of each borrower, using the probability of default corresponding to the average of the equivalent categories of the risk rating agencies.

For those cases where the category equivalent to the rating of a given borrower determined in accordance with any of the risk rating agencies is higher than the risk rating in local currency of the country corresponding to such borrower, or if for any reason there is no risk rating, the risk rating in local currency of such country determined by risk rating agencies will be used.

A specific allowance for loan losses is established by CAF for impaired loans. A loan is considered as impaired when, based on currently available information and events, it is probable 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 original loan’s effective interest rate. The allowance for loan losses is reported as a deduction from loans.

h. Equity Investments – CAF invests in equity securities of companies and funds in strategic sectors, with the objective of promoting the development of such companies and funds and their participation in the securities markets and to serve as a catalytic agent in attracting resources to stockholder 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 when CAF holds an ownership interest in the voting stock of an investee between 20% and 50%, the equity investments are accounted for using the equity method. Under the equity method, the carrying amount of the equity investment is adjusted to reflect CAF’s proportionate share of earnings or losses, dividends received and certain transactions of the investee Company.

Investments representing less than 20% of the voting rights of the investee are recorded using the cost method, recognizing any dividends received as income.

A decline in the value of any equity investment accounted at cost or equity method, that is not deemed to be temporary, results in a reduction in the carrying amount to fair value. These investments are evaluated, any impairment is charged to income and a new value for the investment is established.

The equity investments do not have readily determinable fair values.

i. Property and Equipment, net – Property and equipment are stated at cost less accumulated depreciation. Maintenance and repair expenses are charged directly to the statements of comprehensive

F-13

income for the year as incurred, while improvements and renewals are capitalized. Depreciation is calculated using the straight-line method, and charged to the statements of comprehensive income over the estimated useful life of assets.

The assets in conformity with their estimated useful life are as follows:

Buildings	30 years
Building improvements	15 years
Leasing building improvements	Term of leasing contract
Furniture and equipment	2 to 10 years
Vehicles	5 years

j. Other Assets – Other assets include deferred charges, intangible assets and collateral.

Deferred costs capital investment – Include projects which are in progress. Once they are completed and in place, the total amount invested is capitalized. The depreciation or amortization starts applying the current policy applicable for each asset category.

Deferred finance costs – Include up-front costs and fees related to the issuance of bonds and borrowings denominated in US$ that are deferred and amortized during the term of the bonds and borrowings.

Intangible assets – Include software investments which are reported at cost less accumulated amortization. The amortization is calculated 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.

Collateral – CAF requires or posts collateral from or to individual swap counterparties and futures contracts in the form of approved liquid securities or cash to mitigate its credit exposure to these counterparties. It is the policy of CAF to restrict and invest collateral received from swap and futures counterparties for fulfilling its obligations under the collateral agreement. CAF records the restricted and invested cash in other assets with a corresponding obligation to return the cash in accrued expenses and other liabilities. Collateral posted to swap counterparties and futures contracts, under the collateral agreement, is recorded in other assets.

k. Impairment – A financial asset is considered impaired and an impairment loss is recognized only if there are circumstances that indicate impairment as a result of one or more events (“loss events”) that have occurred after recognition of the financial asset.

l. Deposits and Commercial Papers – Deposits and commercial papers are recorded at amortized cost.

m. Borrowings – The borrowings account includes those obligations with local or foreign financial institutions and commercial banks, which are commonly recorded at amortized cost, except for some borrowings that are hedged using interest rate swaps as an economic hedge.

n. Bonds – Medium and long-term debt issuances, whose objective is to provide the financial resources required to finance CAF’s operations, are recorded as follows:

• Bonds denominated in currencies other than the US$ are recognized at fair value. Gains or losses resulting from changes in the fair value of these bonds, as well as the related up-front costs and fees are recognized in the statement of comprehensive income, when they occur. CAF enters into cross-currency and interest rate swaps as an economic hedge for interest rate and foreign exchange risks related with these bonds.

• Bonds denominated in US$ are hedged for interest rate risk using interest rate swaps, and are designated as part of fair value hedge accounting relationships assuming no hedge ineffectiveness (the “shortcut method”). The related up-front costs and fees are deferred and amortized during their life time.

F-14

Partial repurchases of bond issuances result in the derecognition of the corresponding liabilities. The difference between the repurchase price and the debt’s settlement net cost is recognized as income/loss for the year.

o. Employees’ Severance Benefits – Accrual for severance benefits comprises all the liabilities related to the workers’ vested rights according to CAF’s employee policies and the labor law of the member countries, when applicable. The accrual for employee severance benefits is presented as part of “labor benefits” account under “other liabilities” caption.

Under CAF’s employee policies, employees earn a severance benefit equal to five days of salary per month, up to a total of 60 days per year of service. From the second year of service, employees earn an additional two-day 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 per year. Severance benefits are recorded in the accounting records of CAF and interest on the amounts owed to employees are 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.

p. Pension Plan – In March 2005, CAF established a 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´s benefits are calculated based on years of service and the average salary of the three consecutive years in which the employee received the highest salary. CAF periodically updates the benefit obligations considering actuarial assumptions.

q. Derivative Financial Instruments and Hedging Activities – CAF records all derivative financial instruments on the balance sheet at fair value, regardless of the purpose or intent for holding them. For derivative contracts for which hedge accounting is intended to apply, CAF designates the derivative financial instrument as either a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”) on the date the derivative contract is entered into. 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 derivative financial instruments that are designated as fair-value to specific assets and liabilities on the balance sheet, or to specific firm commitments. CAF’s policy is not to enter into derivative financial instruments for speculative purposes. CAF also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative financial instruments that are used in hedging transactions are highly effective in offsetting changes in fair values.

Changes in the fair value of a highly effective derivative financial instruments designated and qualified 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 attributable to the hedged risk, are recorded in the statement of comprehensive income.

CAF discontinues hedge accounting prospectively upon determining that the derivative financial instrument is no longer effective in offsetting changes in the fair value 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 the designation of the derivative financial instrument as a hedging instrument is no longer appropriate.

When hedge accounting is discontinued because it is determined that the derivative financial instrument no longer qualifies as an effective fair value hedge, CAF continues to carry the derivative financial instrument 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 financial instrument on the

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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. In all situations in which hedge accounting is discontinued, CAF continues to carry the derivative financial instrument at its fair value on the balance sheet, and recognizes any changes in its fair value in the statement of comprehensive income.

r. Fair value of financial instruments and fair value measurements – An entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Accounting guidance establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Inputs used to measure fair value may fall into one of three levels:

Level 1 – Applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2 – Applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

Level 3 – Applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

s. Guarantees – CAF provides guarantees for loans originated by third parties to support projects located within a stockholder 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 of sharing the risk with private lenders or holders of securities. CAF’s responsibility is limited to paying up to the amount of the guarantee upon default by the client. The guarantee fee income received is deferred and recognized over the period covered by the guarantee.

t. Provision for guarantees losses – Provision for guarantees is maintained at a level CAF believes adequate to absorb probable losses inherent to the guaranteed loans originated by third parties as of the date of the financial statements. Guaranteed exposures are classified as either sovereign or non-sovereing. Provision for guarantees is estimated by CAF considering the credit risk exposure, default probability and, effective December 31, 2013, loss given default. Provision for sovereign guarantees losses is based on the individual long-term foreign currency debt rating of the guarantor countries considering the weighted average rating of three recognized international risk rating agencies as of the date of the financial statements preparation. These country risk ratings have associated default probability. Given CAF’s status as a preferred creditor and taking into account the immunities and privileges conferred by its stockholder countries, which are established in CAF’s by-laws and other similar agreements, a factor that reflects a lower default probability — usually equivalent to three levels up in this average rating. For non-sovereign guarantees, effective December 31, 2013, the provision is determined by considering the CAF internal rating of each client and the average rating of the aforementioned agencies.

The provision for credit risks on contingent accounts, such as stand-by letters of credit and guarantees, are reported as other liabilities.

u. Recently adopted accounting pronouncement –

ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income

In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this

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update supersede and replace the presentation requirements for reclassifications out of accumulated other comprehensive income in ASUs 2011-05 (issued in June 2011) and 2011-12 (issued in December 2011) for all public and private organizations. The amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. The amended guidance is effective prospectively for reporting periods beginning after December 15, 2013.

Refer to Note 18 for more information regarding the adoption of this guidance.

v. Recently issued accounting pronouncement pending adoption –

ASU 2014-09, Revenue Recognition

In May 2014, the FASB issued ASU 2014-09, Revenue Recognition (Topic 606) Revenue from Contracts with Customers. This ASU requires companies to recognize revenue when a customer obtains control rather than when companies have transferred substantially all risks and rewards of a good or service. In addition, the update requires expanded disclosures surrounding the Company’s revenue transactions. This ASU will be effective for CAF in 2017.

3. CASH AND DEPOSITS WITH BANKS

Bank deposits with original maturity of three months or less include the following:

	December 31,
	2014		2013		2012
Cash and due from banks		141,147		230,051		141,720
Deposits with banks:
U.S. dollars		1,279,267		1,460,678		1,374,559
Other currencies		—		1,530		115,490
		1,279,267		1,462,208		1,490,049
		1,420,414		1,692,259		1,631,769

4. OTHER INVESTMENTS

Deposits due in 90 days or more (original maturity) as follows:

	December 31,
	2014		2013		2012
U.S. dollars		1,589,458		779,936		99,427
Other currencies		7,150		1,283		1,483
		1,596,608		781,219		100,910

As of December 31, 2014, 2013 and 2012, the interest rate of the other investments was ranged from 0.2% to 1.21%, from 0.2% to 1.11% and from 0.26% to 1.45% respectively.

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5. MARKETABLE SECURITIES

Trading Securities

A summary of trading securities follows:

	December 31,
	2014				2013				2012
	Amount		Average maturity (years)		Amount		Average maturity (years)		Amount		Average maturity (years)
U.S. Treasury Notes		1,920,441		1.88		674,749		2.62		944,773		2.43
Non-U.S. governments and government entities bonds		195,373		0.60		130,390		0.98		178,846		2.45
Financial institutions and corporate securities:
Commercial papers		1,075,478		0.32		1,982,228		0.20		1,899,734		—
Certificates of deposit		2,264,749		0.46		1,454,325		0.38		344,044		0.24
Bonds		1,183,477		1.64		1,165,255		1.86		1,723,496		1.72
Collateralized mortgage obligation		292,214		5.55		220,196		6.46		159,485		10.49
Liquidity funds		199,059		1.00		193,151		1.00		193,005		1.00
Others		—		—		10,950		1.00		9,754		1.00
		5,014,977		1.02		5,026,105		0.94		4,329,518		1.14
		7,130,791		1.24		5,831,244		1.14		5,453,137		1.44

The certificate of deposit bears a maturity date and specified fixed interest rate. It also is registered with The Depository Trust Company (DTC) and has a CUSIP number, which is a code that identifies a financial security, therefore they can be traded at any moment. The liquidity funds are comprised of short-term (less than one year) securities representing high-quality, liquid debt and monetary instruments.

Trading securities include net unrealized losses and gains of US$ 3,038, US$ 5,025 and US$ 11,320 at December 31, 2014, 2013 and 2012, respectively.

Net realized gains and losses from trading securities of US$ 2,003, US$ 12,083 and US$ 6,968 at December 31, 2014, 2013 and 2012, respectively, are included in the statement of comprehensive income in the line Investment and deposits with banks.

CAF places its short-term investments mainly in high grade financial institutions and corporate securities. CAF has very conservative investment guidelines that limit the amount of credit risk exposure, considering among other factors, limits in credit ratings, limits in duration exposure, specific allocations by type of investment instruments and limits across sector and currency allocation. As of December 31, 2014, 2013 and 2012, CAF does not have any significant concentrations of credit risk. In other currencies, total marketable securities include the equivalent of US$ 166,312 and US$ 165,652, at December 31, 2014 and 2012, respectively. At December 31, 2013 CAF does not have marketable securities in other currencies.

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Maturity of debt securities follows:

	December 31,
	2014		2013		2012
Remaining maturities:
Less than one year		4,653,485		4,081,566		3,514,566
Between one and two years		519,111		858,003		678,267
Between two and three years		1,633,819		523,424		742,432
Between three and four years		101,639		184,152		98,917
Between four and five years		110,121		88,289		212,467
Over five years		112,616		95,810		206,488
		7,130,791		5,831,244		5,453,137

6. LOANS

Loans include short, medium and long-term loans to finance projects, working capital and trade activities. The majority of the loans are to Series “A” and “B” stockholder countries, or with private institutions or companies of these countries.

Loans by country are summarized as follows:

	December 31,
	2014		2013		2012
Stockholder country:
Argentina		2,718,009		2,457,474		2,114,725
Bolivia		1,909,509		1,752,611		1,598,808
Brazil		1,932,414		1,654,751		1,252,829
Colombia		1,768,619		1,806,317		1,832,312
Costa Rica		128,627		120,928		126,698
Dominican Republic		172,458		177,576		176,047
Ecuador		2,824,501		2,735,716		2,648,222
Jamaica		5,628		6,129		6,590
Mexico		127,526		194,475		18,026
Panama		1,254,545		886,651		586,944
Paraguay		249,271		189,731		134,501
Peru		2,333,123		2,478,138		2,660,320
Portugal		15,000		—		—
Spain		191,875		200,000		50,000
Uruguay		509,247		378,510		331,820
Venezuela		3,001,625		2,961,658		2,816,083
Loans		19,141,977		18,000,665		16,353,925
Fair value adjustments		2,110		2,606		1,485
Carrying value of loans		19,144,087		18,003,271		16,355,410

Fair value adjustments to the carrying amount of loans represent adjustments to the carrying value of loans for which the fair value option is elected.

At December 31, 2014, 2013 and 2012, loans in other currencies were granted for an equivalent of US$ 41,780, US$ 60,038 and US$ 57,317, respectively, principally in Bolivian bolivianos, Peruvian nuevos soles, Paraguayan guarani, Mexican pesos and Colombian pesos. At December 31, 2014, 2013 and 2012, fixed interest rate loans amounted to US$ 73,164, US$ 99,372 and US$ 88,552 respectively.

F-19

Loans classified by public sector and private sector borrowers, are as follows:

	December 31,
	2014		2013		2012
Public sector		15,564,049		14,974,563		13,823,556
Private sector		3,577,928		3,026,102		2,530,369
		19,141,977		18,000,665		16,353,925

The average yield of the loan portfolio is shown below:

	December 31,
	2014				2013				2012
	Amount		Average yield (%)		Amount		Average yield (%)		Amount		Average yield (%)
Loans		19,141,977		2.62		18,000,665		2.57		16,353,925		2.69

Loans by industry segments are as follows:

	December 31,
	2014		%		2013		%		2012		%
Agriculture, hunting and forestry		63,389		—		64,907		—		62,651		—
Manufacturing industry		399,627		2		314,443		2		205,789		1
Electricity, gas and water supply		6,613,662		35		6,146,592		34		5,530,511		34
Transport, warehousing and communications		7,091,245		37		6,340,756		35		5,825,822		36
Commercial banks		1,191,862		6		1,410,267		8		1,144,172		7
Development banks		571,100		3		586,198		3		496,262		3
Social and other infrastructure programs		3,047,281		16		2,995,347		17		3,033,455		19
Others		163,811		1		142,155		1		55,263		—
		19,141,977		100		18,000,665		100		16,353,925		100

Loans mature as follows:

	December 31,
	2014		2013		2012
Remaining maturities:
Less than one year		2,717,459		2,547,989		2,683,514
Between one and two years		2,140,348		1,773,139		1,481,612
Between two and three years		1,919,126		2,072,016		1,598,393
Between three and four years		1,713,659		1,663,606		1,530,782
Between four and five years		1,815,106		1,463,564		1,274,371
Over five years		8,836,279		8,480,351		7,785,253
		19,141,977		18,000,665		16,353,925

The loan portfolio classified based on the type of credit risk is as follows:

	December 31,
	2014		2013		2012
Sovereign guaranteed		15,318,111		14,313,620		13,228,048
Non-sovereign guaranteed		3,823,866		3,687,045		3,125,877
		19,141,977		18,000,665		16,353,925

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CAF maintains an internal risk rating system to evaluate the quality of the non-sovereign guaranteed loan portfolio, which identifies, through a standardized rating and review parameters, those risks related to credit transactions. The sovereign guaranteed loan portfolio is classified by CAF as satisfactory-excellent. For purpose of determining the allowance for loan losses, rating assigned by external agencies are used (Note 2g).

The credit quality of the non-sovereign guaranteed loan portfolio as of December 31, 2014, 2013 and 2012 is presented by internal credit risk type and classification, as follows:

	December 31,
	2014		2013		2012
Risk classification:
Satisfactory-very good		1,802,917		1,464,326		953,873
Satisfactory appropriate		635,186		1,315,509		1,305,317
Watch		1,275,343		903,085		847,186
Special Mention		—		—		11,650
Sub-standard		93,875		4,125		—
Doubtful		16,545		—		7,851
		3,823,866		3,687,045		3,125,877

Loan portfolio quality

The loan portfolio quality indicators and the amounts related are presented below:

	December 31,
	2014			2013			2012
During the year CAF recorded the following transactions:
Impaired loans		0			0			7,851
Loans written-off		4,125			4,125			0
Purchases of loan portfolio		0			0			0
Sales of loan portfolio		118,008			51,250			76,900
Trouble debt restructured		0			8,250			0
CAF presented the following amounts and quality indicators as of the end of the year:
Non-accrual loans		16,545			0			7,851
Overdue loans		0			0			0
Allowance for loan losses as a percentage of loan portfolio		0.29	%		0.21	%		0.77	%
Nonaccrual loans as a percentage of loan portfolio		0.09	%		0.00	%		0.05	%
Overdue loan principal as a percentage of loan portfolio		0.00	%		0.00	%		0.00	%

A/B Loans

CAF administers loan-participations sold, and only assumes the credit risk for the portion of the loan owned by CAF. At December 31, 2014, 2013 and 2012, CAF had loans of this nature amounting to US$ 1,558,400, US$ 1,480,369 and US$ 1,820,980, respectively; whereas other financial institutions provided funds for US$ 1,067,057, US$ 1,065,707 and US$ 1,325,996, respectively.

F-21

Allowance for Loan Losses

Changes in the allowance for loan losses are presented below:

	December 31,
	2014								2013									2012
	Sector					Total			Sector						Total			Sector						Total
	Sovereign		Non- sovereign						Sovereign			Non- sovereign						Sovereign			Non- sovereign
Balances at beginning of year		10,898		27,438			38,336			95,872			29,927			125,799			99,414			31,222			130,636
Debit (credit) to results of operations, net		9,343		12,209			21,552			(84,974	)		1,557			(83,417	)		(3,542	)		(1,323	)		(4,865	)
Loans written-off		—		(4,125	)		(4,125	)		—			(4,125	)		(4,125	)		—			—			—
Recoveries		—		—			—			—			79			79			—			28			28
Balances at end of year		20,241		35,522			55,763			10,898			27,438			38,336			95,872			29,927			125,799

At December 31, 2013, as a result of the improvement in the determination of the allowance for loan losses on the loan portfolio, the provision for loan losses decreased by US$ 84,886, recognizing the effect in the statement of comprehensive income.

7. EQUITY INVESTMENTS

Equity investments, which have no readily determinable fair value, are as follows:

	December 31,
	2014		2013		2012
Direct investments in companies accounted under equity method		9,169		8,435		8,111
Investment funds accounted under equity method		33,534		27,078		15,389
Direct investments in companies at cost		77,009		40,636		30,411
Investment funds at cost		172,633		152,236		92,900
		292,345		228,385		146,811

F-22

Equity investments by country are summarized as follow:

	Equity participation (%)	December 31,
		2014		2013		2012
Investment Funds:
Bolivia	20		2,714		1,416		802
Brazil	Between 1 and 12		32,762		26,029		5,241
Colombia	Between 9 and 20		35,256		34,228		12,746
Mexico	Between 6 and 20		31,697		13,797		10,628
Peru	Between 6 and 16		12,200		14,790		12,027
Regional	Between 1 and 33		91,538		89,054		66,845
			206,167		179,314		108,289
Direct Investments in companies:
Argentina	17		2,000		2,000		2,000
Bolivia	20		9,169		8,435		8,111
Brazil	Between 14 and 20		7,000		—		—
Colombia	Between 10 and 20		26,482		5,023		3,969
Ecuador	Between 5 and 10		5,490		5,490		490
Peru	1		8,263		8,263		4,182
Regional	Between 2 and 20		27,774		19,860		19,770
			86,178		49,071		38,522
			292,345		228,385		146,811

Details of equity investments under equity method are as follows:

	Equity participation			Latest financial statements
						December 31,
						2014		2013		2012
Companies:
Banco de Desarrollo de la Producción		20	%		09/30/2014		9,169		8,435		8,111
Funds:
Darby Latinoamerican Mezzanine Fund II		20	%		09/30/2014		9,947		10,709		6,386
Emerging Energy Latinoamerican Fund		20	%		09/30/2014		2,434		163		114
Fondo de Fondos México II		20	%		06/30/2014		7,759		3,454		—
Microfinance Growth Fund		20	%		09/30/2014		6,167		6,353		5,577
Produbanco Darby-Probanco Fund II		33	%		09/30/2014		4,513		4,983		2,510
Próspero Microfinanzas Fund		20	%		09/30/2014		2,714		1,416		802
							33,534		27,078		15,389

During 2014, 2013 and 2012, CAF recognized income for US$ 9,020, US$ 5,044 and 3,716, respectively, due to dividends received from investments under cost method, which are included in the statements of comprehensive income.

At December 31, 2014, CAF recognized impairment for US$ 7,307. At December 31, 2013 and 2012, CAF did not recognize any impairment.

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8. PROPERTY AND EQUIPMENT, NET

A summary of property and equipment follows:

	December 31,
	2014		2013		2012
Land		27,012		27,012		18,704
Buildings		26,169		23,662		23,662
Buildings improvements		19,786		18,375		21,420
Leased building improvements		6,770		4,882		1,206
Furniture and equipment		21,583		17,707		14,407
Vehicles		989		877		854
		102,309		92,515		80,253
Less accumulated depreciation		50,805		45,995		41,038
Projects in progress		17,499		20,379		23,441
		69,003		66,899		62,656

The depreciation expenses of US$ 5,974, US$ 5,554 and US$ 3,924 for property and equipment for the years ended December 31, 2014, 2013 and 2012, respectively, are included in the statement of comprehensive income.

9. OTHER ASSETS

A summary of other assets follows:

	December 31,
	2014		2013		2012
Intangible assets, net		10,199		10,957		11,244
Deferred charges, net		36,470		40,507		44,913
Receivable from investment securities sold		4,551		—		—
Derivative related collateral		233,746		192,394		214,624
Other assets		25,572		30,083		10,726
		310,538		273,941		281,507

10. DEPOSITS

A summary of deposits follows:

	December 31,
	2014		2013		2012
Demand deposits		72,479		69,850		68,555
Time deposits:
Less than one year		3,624,031		3,193,824		3,053,288
		3,696,510		3,263,674		3,121,843

At December 31, 2014, 2013 and 2012, the interest rates on time deposits ranged from 0.06% to 1.812%, from 0.02% to 1.597% and from 0.04% to 1.809% respectively. Deposits are issued for amounts equal to or more than US$ 100. Total deposits in other currencies include US$ 157,324, US$ 2,424 and US$ 283,004, at December 31, 2014, 2013 and 2012, respectively.

F-24

11. COMMERCIAL PAPER

CAF’s commercial paper of US$ 1,853,282 at December 31, 2014 will mature in 2015 (US$ 2,936,496 at December 31, 2013 — matured in 2014 and US$ 3,174,927 at December 31, 2012 — matured in 2013). At December 31, 2014, 2013 and 2012, the interest rates on commercial paper ranged from 0.145% to 0.458%, from 0.09% to 0.69% and from 0.08% to 1.07% respectively.

12. BORROWINGS

A summary of borrowings follows:

	December 31,
	2014		2013		2012
U.S. dollars		1,443,140		1,575,019		1,344,860
Peruvian nuevos soles		22,044		21,599		6,857
Venezuelan bolivars		30,159		17,460		16,279
Other currencies		5,853		8,838		4,877
		1,501,196		1,622,916		1,372,873
Fair value adjustments		13,450		5,947		18,220
Carrying value of borrowings		1,514,646		1,628,863		1,391,093

At December 31, 2014, 2013 and 2012, there are fixed interest-bearing borrowings in the amount of US$ 545,171 US$ 407,082 and US$ 169,892 respectively. At December 31, 2014, 2013 and 2012, the interest rates on borrowing ranged from 0.1324% to 12%, from 0.1244% to 12% and from 0,2853% to 12%, respectively.

Borrowings, by remaining maturities, are summarized below:

	December 31,
	2014		2013		2012
Remaining maturities:
Less than one year		246,009		467,837		103,038
Between one and two years		441,506		252,882		468,797
Between two and three years		105,614		226,765		234,823
Between three and four years		184,241		95,912		191,591
Between four and five years		113,625		165,224		66,965
Over five years		410,201		414,296		307,659
		1,501,196		1,622,916		1,372,873

Some borrowing agreements contain covenants requiring the use of the proceeds for specific purposes or projects.

At December 31, 2014, 2013 and 2012 there were unused term credit facilities amounting to US$ 569,342, US$ 609,859 and US$ 722,685, respectively.

F-25

13. BONDS

An analysis of outstanding bonds follows:

	December 31,
	2014						2013						2012
	At original exchange rate		At spot exchange rate		Weighted average cost, after swaps (%) (Year-end)		At original exchange rate		At spot exchange rate		Weighted average cost, after swaps (%) (Year-end)		At original exchange rate		At spot exchange rate		Weighted average cost, after swaps (%) (Year-end)
U.S. dollars		6,109,320		6,109,320		2.03		5,115,006		5,115,006		2.35		5,208,530		5,208,530		2.54
Euro		3,571,411		3,230,302		1.62		2,119,345		2,196,752		1.95		1,190,396		1,177,262		2.55
Swiss francs		2,054,538		1,950,086		1.71		1,871,550		1,981,810		1.98		1,421,295		1,491,640		2.44
Australian dollars		525,233		471,269		1.26		524,464		514,224		1.31		—		—		—
Hong Kong dollars		386,060		386,212		1.69		223,982		224,139		2.03		102,803		102,953		2.62
Norweigan kroner		390,828		323,777		1.43		—		—		—		—		—		—
Japanese yen		418,819		294,807		2.45		671,631		524,109		2.10		622,024		581,583		2.30
Chinese renminbi		96,618		96,660		1.37		96,618		99,092		1.37		96,618		96,288		1.55
Colombian pesos		112,565		92,687		2.64		156,949		173,202		2.95		205,352		273,709		3.34
Mexican pesos		98,108		89,545		2.67		98,108		100,476		2.71		98,108		101,908		2.90
Turkish lira		70,089		67,408		0.34		—		—		—		—		—		—
Peruvian nuevos soles		32,331		35,412		0.73		94,736		103,875		1.13		107,141		129,950		1.40
South African rand		22,594		21,848		0.85		—		—		—		—		—		—
		13,888,514		13,169,333				10,972,389		11,032,685				9,052,267		9,163,823
Fair value adjustments				690,607						159,816						579,029
Carrying value of bonds				13,859,940						11,192,501						9,742,852

A summary of the bonds issued, by remaining maturities, follows:

	December 31,
	2014		2013		2012
Remaining maturities:
Less than one year		1,264,543		942,400		763,729
Between one and two years		1,560,577		1,265,305		944,354
Between two and three years		2,086,958		1,561,340		1,066,805
Between three and four years		1,315,182		887,692		1,148,506
Between four and five years		937,189		1,316,246		888,469
Over five years		6,724,065		4,999,406		4,240,404
		13,888,514		10,972,389		9,052,267

At December 31, 2014, 2013 and 2012, fixed interest rate bonds amounted to US$ 13,059,963, US$ 10,539,306 and US$ 8,703,859, respectively, of which US$ 7,667,123, US$ 6,043,466 and 3,719,349,, respectively, are denominated in Australian Dollars, Chinese renminbi, Colombian pesos, Euro, Hong Kong dollars, Japanese yen, Mexican pesos, Peruvian nuevos soles, Turkish lira, South African rand, Norwegian kroner and Swiss francs.

There were no bonds repurchased during the years ended December 31, 2014, 2013 and 2012.

F-26

14. ACCRUED EXPENSES AND OTHER LIABILITIES

A summary of accrued expenses and other liabilities follows:

	December 31,
	2014		2013		2012
Employees’ severance indemnities, benefits and savings plan		68,382		64,780		55,553
Payable for investment securities purchased		5,683		—		—
Derivatives related collateral		99,413		121,501		214,624
Provision contingencies		2,474		3,643		2,639
Other liabilities		8,441		7,476		9,078
		184,393		197,400		281,894

15. PENSION PLAN

At December 31, 2014 the Plan has 421 participants and active employees. The measurement date used to determine pension plan benefit obligation is December 31.

For the years ended December 31, 2014, 2013 and 2012, a reconciliation of beginning and ending balances of the benefit obligation are as follows:

	December 31,
	2014			2013			2012
Change in benefit obligation:
Benefit obligation at beginning of year		9,558			6,875			4,871
Service cost		1,206			1,084			911
Interest cost		406			297			213
Plan participants’ contributions		1,170			1,050			882
Actuarial (gain) loss		(435	)		333			230
Benefit paid		(611	)		(81	)		(232	)
Benefit obligation at end of year		11,294			9,558			6,875

For the years ended December 31, 2014, 2013 and 2012, a reconciliation of beginning and ending balances of the fair value of plan assets are as follows:

	December 31,
	2014			2013			2012
Change in plan assets:
Fair value of plan assets at beginning of year		9,098			6,359			4,494
Actual return on plan assets		183			126			93
Contributions		2,656			2,695			2,004
Benefit paid		(611	)		(82	)		(232	)
Fair value of plan assets at year of year		11,326			9,098			6,359

As of December 31, 2014, 2013 and 2012, the plan assets are as follows:

	December 31,
	2014		2013		2012
Plan assets:
Deposits with banks		11,326		9,098		6,359

F-27

The table below summarizes the component of the periodic cost of projected benefits related to the PBO for the years ended December 31, 2014, 2013 and 2012:

	December 31,
	2014			2013			2012
Service cost		1,206			1,084			911
Interest cost		406			297			213
Expected return on plan assets		(136	)		(110	)		(80	)
		1,476			1,271			1,044

A summary of the net projected cost for the year 2015 follows:

Service cost:
Contributions to the plan	1,234
Guaranteed benefit	204
	1,438
Interest cost	481
Expected return on plan assets	(170	)
	1,749

Weighted-average assumptions used to determine net benefit cost since the origination of the Plan to December 31, 2014, 2013 and 2012 follows:

Discount rate	4	%
Expected long-term rate return on Plan assets	1.5	%
Salary increase rate	3	%

16. STOCKHOLDERS’ EQUITY

Authorized Capital

The authorized capital of CAF at December 31, 2014, 2013 and 2012 amounts to US$ 10,000,000, 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

CAF’s 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: Argentina, Bolivia, Brazil, Colombia, Ecuador, Panama, Paraguay, Peru, Uruguay and Venezuela. Series “A” shares grant the right of representation on CAF’s Board of Directors to one principal director and one alternate director for each of the above countries. These 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: Argentina, Bolivia, Brazil, Colombia, Ecuador, Panama, Paraguay, Peru, Uruguay and Venezuela. Each of these shares grants the right of representation on CAF’s Board of Directors to one

F-28

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 Series “B” shares of CAF are entitled, as a group, to elect 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 Argentina, Bolivia, Brazil, Colombia, Ecuador, Panama, Paraguay, Peru, Uruguay and Venezuela. These shares confer the right of representation on CAF´s Board of Directors to 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 changes in subscribed and paid-in capital for the years ended December 31, 2014, 2013 and 2012 follows:

	Number of Shares						Nominal Amounts
	Series “A”		Series “B”		Series “C”		Series “A”		Series “B”		Series “C”		Total
At December 31, 2011		10		600,016		43,457		12,000		3,000,080		217,285		3,229,365
Capitalization of additional paid-in capital issued for cash		—		46,325		3,339		—		231,625		16,695		248,320
Issued for cash		—		16,827		14,979		—		84,135		74,895		159,030
At December 31, 2012		10		663,168		61,775		12,000		3,315,840		308,875		3,636,715
Issued for cash		—		43,268		17,665		—		216,340		88,325		304,665
At December 31, 2013		10		706,436		79,440		12,000		3,532,180		397,200		3,941,380
Issued for cash		—		49,453		12,370		—		247,265		61,850		309,115
At December 31, 2014		10		755,889		91,810		12,000		3,779,445		459,050		4,250,495

Subscribed and paid-in capital at December 31, 2014 is presented as follows:

	Number of Shares						Nominal Amounts
	Series “A”		Series “B”		Series “C”		Series “A”		Series “B”		Series “C”		Total
Stockholder:
Argentina		1		75,445		—		1,200		377,225		—		378,425
Bolivia		1		44,319		—		1,200		221,595		—		222,795
Brazil		1		65,927		—		1,200		329,635		—		330,835
Colombia		1		153,278		—		1,200		766,390		—		767,590
Ecuador		1		44,640		—		1,200		223,200		—		224,400
Panama		1		18,747		—		1,200		93,735		—		94,935
Paraguay		1		18,376		—		1,200		91,880		—		93,080
Peru		1		158,290		—		1,200		791,450		—		792,650
Uruguay		1		22,746		—		1,200		113,730		—		114,930
Venezuela		1		153,712		—		1,200		768,560		—		769,760
Chile		—		—		5,541		—		—		27,705		27,705
Costa Rica		—		—		3,291		—		—		16,455		16,455
Dominican Republic		—		—		6,373		—		—		31,865		31,865
Jamaica		—		—		182		—		—		910		910
Mexico		—		—		11,757		—		—		58,785		58,785
Portugal		—		—		1,470		—		—		7,350		7,350
Spain		—		—		39,739		—		—		198,695		198,695
Trinidad & Tobago		—		—		23,457		—		—		117,285		117,285
Commercial banks		—		409		—		—		2,045		—		2,045
		10		755,889		91,810		12,000		3,779,445		459,050		4,250,495

F-29

At December 31, 2014, the detail 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 shares		Nominal Amount		Number of shares		Nominal Amount		Number of shares		Nominal Amount		Number of shares		Nominal Amount
Stockholder:
Argentina		15,794		78,970		—		—		25,200		126,000		—		—
Bolivia		7,094		35,470		—		—		14,400		72,000		—		—
Brazil		21,931		109,655		—		—		25,200		126,000		—		—
Colombia		22,838		114,190		—		—		50,400		252,000		—		—
Ecuador		7,094		35,470		—		—		14,400		72,000		—		—
Panama		8,099		40,495		—		—		7,200		36,000		—		—
Paraguay		7,990		39,950		—		—		7,200		36,000		—		—
Peru		18,260		91,300		—		—		50,400		252,000		—		—
Uruguay		5,333		26,665		—		—		7,200		36,000		—		—
Venezuela		22,837		114,185		—		—		50,400		252,000		—		—
Chile		—		—		—		—		—		—		800		4,000
Dominican Republic		—		—		662		3,310		—		—		—		—
Mexico		—		—		—		—		—		—		1,600		8,000
Portugal		—		—		—		—		—		—		16,332		81,660
Spain		—		—		—		—		—		—		40,000		200,000
Trinidad & Tobago		—		—		—		—		—		—		—		—
Commercial banks		7		35		—		—		—		—		—		—
		137,277		686,385		662		3,310		252,000		1,260,000		58,732		293,660

Subscribed and paid-in capital at December 31, 2013 is presented as follows:

	Number of Shares						Nominal Amounts
	Series “A”		Series “B”		Series “C”		Series “A”		Series “B”		Series “C”		Total
Stockholder:
Argentina		1		69,308		—		1,200		346,540		—		347,740
Bolivia		1		41,653		—		1,200		208,265		—		209,465
Brazil		1		60,142		—		1,200		300,710		—		301,910
Colombia		1		145,733		—		1,200		728,665		—		729,865
Ecuador		1		41,957		—		1,200		209,785		—		210,985
Panama		1		17,816		—		1,200		89,080		—		90,280
Paraguay		1		13,646		—		1,200		68,230		—		69,430
Peru		1		149,160		—		1,200		745,800		—		747,000
Uruguay		1		20,432		—		1,200		102,160		—		103,360
Venezuela		1		146,166		—		1,200		730,830		—		732,030
Chile		—		—		5,541		—		—		27,705		27,705
Costa Rica		—		—		3,291		—		—		16,455		16,455
Dominican Republic		—		—		6,197		—		—		30,985		30,985
Jamaica		—		—		182		—		—		910		910
Mexico		—		—		11,757		—		—		58,785		58,785
Portugal		—		—		1,470		—		—		7,350		7,350
Spain		—		—		35,135		—		—		175,675		175,675
Trinidad & Tobago		—		—		15,867		—		—		79,335		79,335
Commercial banks		—		423		—		—		2,115		—		2,115
		10		706,436		79,440		12,000		3,532,180		397,200		3,941,380

F-30

At December 31, 2013, the detail 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 shares		Nominal Amount		Number of shares		Nominal Amount		Number of shares		Nominal Amount		Number of shares		Nominal Amount
Stockholder:
Argentina		21,931		109,655		—		—		25,200		126,000		—		—
Bolivia		9,760		48,800		—		—		14,400		72,000		—		—
Brazil		27,716		138,580		—		—		25,200		126,000		—		—
Colombia		30,383		151,915		—		—		50,400		252,000		—		—
Ecuador		9,760		48,800		—		—		14,400		72,000		—		—
Panama		9,030		45,150		—		—		7,200		36,000		—		—
Paraguay		6,280		31,400		—		—		7,200		36,000		—		—
Peru		27,390		136,950		—		—		50,400		252,000		—		—
Uruguay		7,647		38,235		—		—		7,200		36,000		—		—
Venezuela		30,383		151,915		—		—		50,400		252,000		—		—
Chile		—		—		—		—		—		—		800		4,000
Dominican Republic		—		—		838		4,190		—		—		—		—
Mexico		—		—		—		—		—		—		1,600		8,000
Portugal		—		—		—		—		—		—		16,332		81,660
Spain		—		—		4,604		23,020		—		—		40,000		200,000
Trinidad & Tobago		—		—		7,590		37,950		—		—		—		—
Commercial banks		7		35		—		—		—		—		—		—
		180,287		901,435		13,032		65,160		252,000		1,260,000		58,732		293,660

Subscribed and paid-in capital at December 31, 2012 is presented as follows:

	Number of Shares						Nominal Amounts
	Series “A”		Series “B”		Series “C”		Series “A”		Series “B”		Series “C”		Total
Stockholder:
Argentina		1		63,523		—		1,200		317,615		—		318,815
Bolivia		1		38,987		—		1,200		194,935		—		196,135
Brazil		1		58,372		—		1,200		291,860		—		293,060
Colombia		1		138,188		—		1,200		690,940		—		692,140
Ecuador		1		39,291		—		1,200		196,455		—		197,655
Panama		1		14,975		—		1,200		74,875		—		76,075
Paraguay		1		12,447		—		1,200		62,235		—		63,435
Peru		1		140,030		—		1,200		700,150		—		701,350
Uruguay		1		18,329		—		1,200		91,645		—		92,845
Venezuela		1		138,621		—		1,200		693,105		—		694,305
Chile		—		—		5,541		—		—		27,705		27,705
Costa Rica		—		—		3,291		—		—		16,455		16,455
Dominican Republic		—		—		5,838		—		—		29,190		29,190
Jamaica		—		—		182		—		—		910		910
Mexico		—		—		11,757		—		—		58,785		58,785
Portugal		—		—		1,109		—		—		5,545		5,545
Spain		—		—		25,923		—		—		129,615		129,615
Trinidad & Tobago		—		—		8,134		—		—		40,670		40,670
Commercial banks		—		405		—		—		2,025		—		2,025
		10		663,168		61,775		12,000		3,315,840		308,875		3,636,715

F-31

At December 31, 2012, the detail 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 shares		Nominal Amount		Number of shares		Nominal Amount		Number of shares		Nominal Amount		Number of shares		Nominal Amount
Stockholder:
Argentina		11,620		58,100		—		—		25,200		126,000		—		—
Bolivia		12,426		62,130		—		—		14,400		72,000		—		—
Brazil		29,486		147,430		—		—		25,200		126,000		—		—
Colombia		37,928		189,640		—		—		50,400		252,000		—		—
Ecuador		12,426		62,130		—		—		14,400		72,000		—		—
Panama		11,871		59,355		—		—		7,200		36,000		—		—
Paraguay		7,479		37,395		—		—		7,200		36,000		—		—
Peru		20,424		102,120		—		—		50,400		252,000		—		—
Uruguay		9,750		48,750		—		—		7,200		36,000		—		—
Venezuela		37,928		189,640		—		—		50,400		252,000		—		—
Chile		—		—		—		—		—		—		800		4,000
Mexico		—		—		—		—		—		—		1,600		8,000
Portugal		—		—		346		1,730		—		—		15,688		78,439
Spain		—		—		13,816		69,080		—		—		40,000		200,000
Trinidad & Tobago		—		—		15,323		76,615		—		—		—		—
Commercial banks		18		90		—		—		—		—		—		—
		191,356		956,780		29,485		147,425		252,000		1,260,000		58,088		290,439

General Reserve

CAF maintains a general reserve approved by the stockholders’ Assembly, which is considered an equity reserve. Stockholders approved the increase in the reserve by US$ 116,557, US$ 24,071 and US$ 40,779 during the years ended March 31, 2014, 2013 and 2012, through appropriations from net income for the years ended December 31, 2013, 2012 and 2011, respectively.

Reserve Pursuant to Article N° 42 of the By-laws

CAF’s by-laws requires that at least 10% of annual net income is to be appropriated to a reserve fund until that fund amounts to 50% of the subscribed capital, which is considered an equity reserve. Additional appropriation may be approved by the stockholders. At the stockholders’ Assembly in March 2014, 2013 and 2012, it was authorized to increase the reserve by US$ 21,200, US$ 16,100 and US$ 15,300, through an appropriation from net income for the years ended December 31, 2013, 2012 and 2011, respectively.

17. DISTRIBUTIONS TO STOCKHOLDERS’ SPECIAL FUNDS

The stockholders’ Assembly may distribute a portion of retained earnings to special funds, created to promote technical and financial cooperation, sustainable human development, and management of poverty relief funds in stockholder countries. CAF has no residual interest in these funds.

In March 2014, 2013 and 2012, the stockholders’ Assembly approved the distribution of US$ 69,000, US$ 119,998 and US$ 96,500, from retained earnings at December 31, 2013, 2012 and 2011, respectively, to the stockholders’ special funds (Note 25).

Additionally, in March 2014, the stockholders´ Assembly approved, effective 2015, the change in the accounting record of distributions to stockholders’ special funds, recognizing them as expenses rather than as a decrease in retained earnings.

F-32

18. ACCUMULATED OTHER COMPREHENSIVE INCOME

Accumulated other comprehensive income balances as of December 31, 2014, 2013 and 2012, and the amounts reclassified out of accumulated other comprehensive income affected net income were as follows:

	December 31,
	2014			2013			2012
Balances at beginning of the year		(317	)		—			—
Unrecognized changes in assets/ liabilities under benefit pension plan		32			(317	)		—
Amortization of defined benefit pension items(1)		317			—			—
Balances at end of year		32			(317	)		—

(1) This accumulated other comprehensive income component is included in administrative expenses in the statement of comprehensive income.

19. TAX EXEMPTIONS

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.

20. DERIVATIVE FINANCIAL 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 exposure 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 financial instrument is positive, the counterparty owes CAF, creating credit risk for CAF. When the fair value of a derivative financial instrument is negative, CAF owes the counterparty and, therefore, it does not have credit risk. CAF minimizes the credit risk in derivative financial 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 financial 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 identified loans, bonds or borrowings and other obligations with fixed interest rates or non U.S. currency exposure.

CAF also utilizes futures derivatives instruments to reduce exposure to risk. There are contracts for delayed delivery of securities or money market instruments in which the seller agrees to make delivery at a specified future date of a specified instrument at a specified price or yield. Initial margin requirements are met with cash or securities. CAF generally closes out open positions prior to maturity. Therefore, cash receipts or payments are limited to the change in fair value of the future contracts.

CAF monitors the credit risk associated with derivative financial instruments. 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 derivative financial instruments, CAF enters into credit support agreements with its major swap counterparties. This provides risk mitigation, as the swap contracts are regularly mark-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 the counterparty’s credit rating deteriorates. This collateral is in the form of cash or highly rated and liquid government securities.

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CAF does not offset, for each counterparty, the fair value amount recognized for derivative financial instruments with the fair value amount recognized for the collateral, whether posted or received, under master netting arrangements executed with the same counterparty. CAF reports separately the cumulative gross amounts for the receivable from and payable to for derivative financial instruments.

At December 31, 2014, 2013 and 2012, balance sheet details related to CAF’s derivative financial instruments is as follows:

	Derivative assets						Derivative liabilities
	December 31,						December 31,
	2014		2013		2012		2014		2013		2012
Interest rate swap		183,323		96,640		376,341		33,752		6,935		4,705
Cross-currency swap		199,790		320,774		396,107		349,150		175,889		55,362
Futures		—		244		—		155		—		—
Forward contracts		590		—		—		29		—		—
		383,703		417,658		772,448		383,086		182,824		60,067

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, 2014, 2013 and 2012:

	Notional amount				Fair value
	Interest rate swap		Cross- currency swap		Derivative assets		Derivative liabilities
At December 31, 2014:
Loans		—		18,351		3,151		187
Loans		6,125		—		—		46
Borrowings		419,167		—		13,766		316
Bonds		5,357,840		—		169,557		33,390
Bonds		—		7,803,396		196,639		348,963
		5,783,132		7,821,747		383,113		382,902
At December 31, 2013:
Loans		—		30,586		1,014		2,560
Loans		14,965		—		—		176
Borrowings		490,000		—		5,947		—
Bonds		4,560,840		—		90,693		6,759
Bonds		—		5,878,979		319,760		173,329
		5,065,805		5,909,565		417,414		182,824
At December 31, 2012:
Loans		—		42,820		—		6,506
Loans		23,900		—		617		—
Borrowings		323,333		—		18,220		—
Bonds		5,049,510		—		357,504		4,705
Bonds		—		3,855,689		396,107		48,856
		5,396,743		3,898,509		772,448		60,067

The amount recognized for the right to receive collateral related with interest rate swaps and cross-currency swaps that have been offset at year-end 2014, 2013 and 2012, was US$ 99,413, US$ 121,501 and US$ 214,624, respectively. The amount recognized for the obligation to post collateral that have been offset at year-end 2014 and 2013, was US$ 132,959 and US$ 70,893, respectively. At December, 31, 2012 did not recognize any obligation to post collateral.

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The following table presents the notional amount and fair values of futures and the underlying hedged items at December 31, 2014 and 2013:

									Fair value
	Start date		Termination date		Contract Currency		Notional amount		Derivative assets
At December 31, 2014:
Forward contracts		Various		Until Sep 2015		Various		560		590

										Fair value
	Start date		Termination date		Contract Currency		Notional amount			Derivative liabilities
At December 31, 2014:
Futures		Nov/Dec 2014		March 2015		Various		49,900			(81	)
Futures		Nov/Dec 2014		March 2015		Various		4,900			(74	)
								54,800			(155	)
Forward contracts		Various		Until Sep 2015		Various		(560	)		(29	)
								54,240			(184	)

										Fair value
	Start date		Termination date		Contract Currency		Notional amount			Derivative assets
At December 31, 2013:
Futures		Nov/Dec 2013		March 2014		USD		(56,900	)		244

The amount recognized for the obligation to post collateral related with futures that have been offset at year-end 2014, was US$ 1,374.

For the years ended December 31, 2014, 2013 and 2012, all of CAFs’ derivatives which had been designated as hedging relationship 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 comprehensive income.

CAF enters into International Swaps and Derivatives Association, Inc. (ISDA) master netting arrangements with substantially all of its derivative counterparties. These legally enforceable master netting arrangements give CAF the right to take cash or liquidate securities held as collateral and to offset receivables and payables with the same counterparty, in the event of default by the counterparty. The following tables present information about the offsetting of derivative instruments, although CAF has elected not to offset any derivative financial instruments by counterparty in the balance sheet:

At December 31, 2014

Derivative assets			Gross amounts not offset
			in the balance sheet
Description	Gross amounts of recognized assets		Financial instruments			Cash and securities collateral received			Net amount
Swaps		383,113		(201,474	)		(99,413	)		82,226

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Derivative liabilities				Gross amounts not offset
				in the balance sheet
Description	Gross amounts of recognized liabilities			Financial instruments		Cash and securities collateral pledged		Net amount
Swaps		(382,901	)		201,474		132,959		(48,468	)

At December 31, 2013

Derivative assets			Gross amounts not offset
			in the balance sheet
Description	Gross amounts of recognized assets		Financial instruments			Cash and securities collateral received			Net amount
Swaps		546,019		(184,757	)		(121,501	)		239,761

Derivative liabilities				Gross amounts not offset
				in the balance sheet
Description	Gross amounts of recognized liabilities			Financial instruments		Cash and securities collateral pledged		Net amount
Swaps		(311,429	)		184,757		70,893		(55,779	)

At December 31, 2012

Derivative assets			Gross amounts not offset
			in the balance sheet
Description	Gross amounts of recognized assets		Financial instruments		Cash and securities collateral received			Net amount
Swaps		774,660		45,621		(214,624	)		514,415

Derivative liabilities				Gross amounts not offset
				in the balance sheet
Description	Gross amounts of recognized liabilities			Financial instruments		Cash and securities collateral pledged		Net amount
Swaps		(62,279	)		45,621		—		(16,658	)

21. FAIR VALUE MEASUREMENTS

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 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. If in some cases where a market price is not available, CAF makes use appropriate valuation methodologies that require considerable judgment in developing and interpreting the estimates of 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 developed valuation techniques are classified according to the lowest level input or value driver that is significant to the fair value measurement. Thus, an item may be classified in Level 3 even though there may be some significant inputs that are readily observable.

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Where available, CAF may also make use of quoted prices for recent trading activity in positions with the same or similar characteristics to the one 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.

The following methods are used to estimate the fair value hierarchy of CAF’s financial instruments:

• Marketable securities: CAF uses quoted market prices to determine the fair value of trading securities and these financial assets are classified in Level 1 of the fair-value hierarchy.

• Loans: The fair value of fixed rate loans, is determined using the current variable interest rate for similar loans. These loans 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 using market prices provided by the counterparties. Derivative assets and liabilities are classified in Level 2 of the fair value hierarchy.

• Bonds and borrowings: For CAF´s bonds issued and medium and long term borrowings, fair value is determined using an internal valuation technique, taking into consideration benchmark interest yield curves at the end of the reporting period to discount the expected cash flows for the applicable maturity, thus reflecting market fluctuation of key variables such as interest and exchange rates. These yield curves are adjusted to incorporate CAF credit risk spread. Those transactions are generally classified in Level 2 of the fair-value hierarchy depending on the observability of significant inputs to the model.

During 2014, 2013 and 2012, there were no transfers between levels 1, 2 and 3.

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Items Measured at Fair Value on a Recurring Basis

The following tables present for each of the fair-value hierarchy levels CAF’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2014, 2013 and 2012:

	Level 1		Level 2		Level 3		Total
At December 31, 2014:
Assets:
Marketable Securities:
U.S. Treasury Notes		1,920,441		—		—		1,920,441
Bonds of non-U.S. governments and government entities		195,373		—		—		195,373
Financial institutions and corporate securities:
Commercial papers		1,075,478		—		—		1,075,478
Certificate of deposits		2,264,749		—		—		2,264,749
Bonds		1,183,477		—		—		1,183,477
Collateralized mortgage obligation		292,214		—		—		292,214
Liquidity funds		199,059		—		—		199,059
		5,014,977		—		—		5,014,977
		7,130,791		—		—		7,130,791
Loans		—		21,954		—		21,954
Derivative instruments:
Interest rate swap		—		183,323		—		183,323
Cross-currency swap		—		199,790		—		199,790
Forward contracts		—		590		—		590
		—		383,703		—		383,703
		7,130,791		405,657		—		7,536,448
Liabilities:
Borrowings		—		432,617		—		432,617
Bonds		—		13,124,319		—		13,124,319
Derivative instruments:
Futures		—		155		—		155
Interest rate swap		—		33,752		—		33,752
Cross-currency swap		—		349,150		—		349,150
Forward contracts		—		29		—		29
		—		383,086		—		383,086
		—		13,940,022		—		13,940,022

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	Level 1		Level 2		Level 3		Total
At December 31, 2013:
Assets:
Marketable Securities:
U.S. Treasury Notes		674,749		—		—		674,749
Bonds of non-U.S. governments and government entities		130,390		—		—		130,390
Financial institutions and corporate securities:
Commercial papers		1,982,228		—		—		1,982,228
Certificate of deposits		1,454,325		—		—		1,454,325
Bonds		1,165,255		—		—		1,165,255
Collateralized mortgage obligation		220,196		—		—		220,196
Liquidity funds		193,151		—		—		193,151
Others		10,950		—		—		10,950
		5,026,105		—		—		5,026,105
		5,831,244		—		—		5,831,244
Loans		—		48,358		—		48,358
Derivative instruments:
Futures		—		244		—		244
Interest rate swap		—		96,640		—		96,640
Cross-currency swap		—		320,774		—		320,774
		—		417,658		—		417,658
		5,831,244		466,016		—		6,297,260
Liabilities:
Borrowings		—		495,947		—		495,947
Bonds		—		10,659,931		—		10,659,931
Derivative instruments:
Interest rate swap		—		6,935		—		6,935
Cross-currency swap		—		175,889		—		175,889
		—		182,824		—		182,824
		—		11,338,702		—		11,338,702

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	Level 1		Level 2		Level 3		Total
At December 31, 2012:
Assets:
Marketable Securities:
U.S. Treasury Notes		944,773		—		—		944,773
Bonds of non-U.S. governments and government entities		178,846		—		—		178,846
Financial institutions and corporate securities:
Commercial papers		1,899,734		—		—		1,899,734
Certificate of deposits		344,044		—		—		344,044
Bonds		1,723,496		—		—		1,723,496
Collateralized mortgage obligation		159,485		—		—		159,485
Liquidity funds		193,005		—		—		193,005
Others		9,754		—		—		9,754
		4,329,518		—		—		4,329,518
		5,453,137		—		—		5,453,137
Loans		—		72,354		—		72,354
Derivative instruments:
Interest rate swap		—		376,341		—		376,341
Cross-currency swap		—		396,107		—		396,107
		—		772,448		—		772,448
		5,453,137		844,802		—		6,297,939
Liabilities:
Borrowings		—		341,553		—		341,553
Bonds		—		9,595,784		—		9,595,784
Derivative instruments:
Interest rate swap		—		4,705		—		4,705
Cross-currency swap		—		55,362		—		55,362
		—		60,067		—		60,067
		—		9,997,404		—		9,997,404

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Items that are not measured at fair value

The carrying amount and estimated fair values of CAF’s financial instruments that are not recognized in the balance sheets at fair value are as follows:

	Hierarchy Levels		December 31,
			2014				2013				2012
			Carrying amount		Estimated fair value		Carrying amount		Estimated fair value		Carrying amount		Estimated fair value
Financial assets:
Cash and due from banks		1		141,147		141,147		230,051		230,051		141,720		141,720
Deposits with banks		1		1,279,267		1,279,267		1,462,208		1,462,208		1,490,049		1,490,049
Other investments		1		1,596,608		1,596,608		781,219		781,219		100,910		100,910
Loans, net		2		18,976,959		18,981,432		17,836,204		17,838,511		16,283,056		16,283,792
Equity investments (cost method)		2		249,642		249,642		192,872		192,872		123,311		123,311
Accrued interest and commissions receivable		2		292,325		292,325		242,153		242,153		216,323		216,323
Financial liabilities:
Deposits		2		3,696,510		3,696,510		3,263,674		3,263,674		3,121,843		3,121,843
Commercial paper		2		1,853,282		1,853,282		2,936,496		2,936,496		3,174,927		3,174,927
Borrowings		2		1,082,029		1,083,696		1,132,916		1,134,194		1,049,540		1,049,681
Bonds		2		735,830		737,349		532,570		534,326		147,068		149,043
Accrued interest payable		2		239,547		239,547		200,013		200,013		180,597		180,597

The following methods and assumptions were used to estimate the fair value of those financial instruments, not accounted for at fair value:

• Cash and due from banks, deposits with banks, interest and commissions receivable, other investment, deposits, commercial paper 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 grant loans for development projects in the stockholder countries. A secondary market does not exist for the type of loans granted by CAF. As rates on variable rate loans 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. The fair value of impaired loans is estimated on the basis of discounted cash flows.

• Equity investments: CAF´s equity investments in other entities do not have available market price quotations. The fair value of equity investments is determined based on a financial analysis of the investees and any losses are recognized immediately in the statement of comprehensive income.

• Bonds and borrowings: For CAF´s bonds issued and medium and long term borrowings, fair value is determined using an internal valuation technique, taking into consideration yield curves to discount the expected cash flows for the applicable maturity, thus reflecting the fluctuation of variables such as interest and exchange rates. These yield curves are adjusted to incorporate CAF credit risk spread. Those transactions are generally classified in Level 2 of the fair-value hierarchy depending on the observability of significant inputs to the model.

During 2014, 2013 and 2012, there were no transfers between levels 1, 2 and 3.

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22. FAIR VALUE OPTION

CAF’s management decided to measure at fair value those financial assets and liabilities denominated in currencies other than US 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 comprehensive income resulting from the periodic cash flows and unrealized changes in fair value as of December 31, 2014, 2013 and 2012 for instruments for which the fair value option was chosen, and for derivatives used as economic hedges for these instruments, are as follows:

	December 31,
	2014			2013		2012
Bond related swaps		2,165			787		(779	)
Loan related swaps		(690	)		1,342		202
		1,475			2,129		(577	)

23. COMMITMENTS AND CONTINGENCIES

Commitments and contingencies include the following:

	December 31,
	2014		2013		2012
Loan commitments subscribed — eligibles		5,281,911		4,583,475		3,706,207
Loan commitments subscribed — non eligibles		2,836,455		1,965,410		2,531,805
Lines of credit		4,718,975		4,782,126		3,578,581
Letters of credit		16,776		58,641		27,991
Equity investments agreements subscribed		286,149		254,687		185,799
Guarantees		311,819		375,533		331,630

These commitments and contingencies result from the normal course of CAF’s business and are related principally to loans that have been approved or committed for disbursement.

In the ordinary course of business, CAF has entered into commitments to extend loans; such financial instruments are recorded as loan commitments upon signing the corresponding loan agreement and are reported in the financial statements when disbursements are made. Loan commitments that have fulfilled the necessary requirements for disbursement are classified as eligible.

The commitments to extend loans 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,
	2014		2013		2012
Remaining maturities:
Less than one year		45,621		98,707		81,822
Between one and two years		12,000		—		—
Between four and five years		40,254		52,924		—
Over five years		213,944		223,902		249,808
		311,819		375,533		331,630

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To the best knowledge of CAF’s management, CAF is not engaged in any litigation that is material to CAF’s business or that is likely to have any impact on its business, financial condition or results of operations.

24. ADMINISTRATIVE EXPENSES

For the years ended December 31, 2014 and 2013, CAF recorded administrative expenses as follows:

	December 31,
	2014		2013		2012
Salaries and employee benefits		74,111		67,388		57,696
Professional fees, seminars and other expenses		16,486		14,492		11,630
Logistics and infrastructure		15,038		13,066		13,797
Telecommunications and technology		11,043		9,051		7,865
		116,678		103,997		90,988

25. SPECIAL FUNDS AND OTHER FUNDS UNDER MANAGEMENT

CAF, as a multilateral financial institution, acts as administrator of several funds owned by third-parties and CAF’s stockholders’ special funds.

The special funds contribute to regional integration and sustainable development through capacity building, increased domestic and international exchanges, generation and use of knowledge, as well as training human resources and fortifying institutions, and CAF is responsible for their administration. The special funds are governed by the provisions of the Constitutive Agreement and any other provisions that may be established by the Board of Directors. The resources of the special funds are completely independent from the resources of CAF and are thus so maintained, accounted for, presented, utilized, invested, committed and otherwise disposed of. With regard to the use of the special funds, the financial responsibility of CAF, as administrator, is limited to the net assets and reserves of each of the constituted special funds. CAF has no residual interest in the net assets of the special funds.

As of December 31, 2014, 2013 and 2012, managed funds net assets are US$ 508,638, US$ 537,651 and US$ 498,048, respectively. The balances of main managed funds are as follows:

	December 31,
	2014		2013			2012
Compensatory Financing Fund (FFC)(1)		330,736		350,010			324,270
Fund for the Development of Small and Medium Enterprises (FIDE)		54,810		56,879			43,567
Fund for the Promotion of Sustainable Infrastructure Projects (PROINFRA)(2)		—		25,440			24,480
Technical Cooperation Fund (FCT)(2)		55,936		25,826			22,917
Human Development Fund (FONDESHU)		15,604		17,610			16,884
Latin American Carbon, Clean Alternative Energies Program (PLAC)		7,228		7,158			7,696
Cross-Border Cooperation and Integration (COPIF)		—		3,724			3,487
Special Bolivia Fund (FEB)(2)		—		(767	)		(1,449	)
Others		44,324		51,771			56,196
		508,638		537,651			498,048

(1) FFC was created by CAF’s stockholders for the purpose of compensating a portion of the interest costs of certain loans granted by CAF to finance economic and social infrastructure projects. For the years ended December 31, 2014, 2013 and 2012, FFC compensated interest amounting to US$ 61,261 US$ 48,239 and US$ 37,489, respectively.

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(2) As of March 18, 2014 and according to the decision of the Board, these funds were combined, with the Technical Cooperation Fund (FCT).

26. SEGMENT REPORTING

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 services among individual countries.

For the years ended December 31, 2014, 2013 and 2012, loans made to or guaranteed by six countries individually generated an excess, before swaps, of 10% of loan income, as follows:

	December 31,
	2014		2013		2012
Argentina		71,292		60,632		61,101
Bolivia		46,488		41,959		42,497
Brazil		44,972		—		—
Colombia		42,757		45,251		54,042
Ecuador		62,249		61,951		66,006
Peru		64,459		60,346		77,420
Venezuela		71,846		73,020		78,464
		404,063		343,159		379,530

27. SUBSEQUENT EVENTS

Management has evaluated subsequent events through January 30, 2015, the date of issue of these financial statements. As a result of this evaluation, Management has determined that there are no subsequent events, that require a disclosure in CAF’s financial statements at the year ended December 31, 2014, except for:

• On January 21, 2015 CAF priced bonds under its U.S. Shelf program for US$ 1,000,000, Floating Rates Notes due 2018. The effective date of the bonds is January 29, 2015.

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UNAUDITED CONDENSED INTERIM FINANCIAL INFORMATION AND NOTES THERETO

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Unaudited Condensed Interim Financial Information

As of March 31, 2015 and December 31, 2014

Balance Sheets

(In thousands of U.S. dollars)

	March 31, 2015		December 31, 2014
ASSETS
Cash and due from banks		144,107		141,147
Deposits with banks		1,848,228		1,279,267
Marketable securities
Trading		7,246,185		7,130,791
Other investments		2,150,775		1,596,608
Loans (includes $18,737 and $21,954 as of March 31, 2015 and December 31, 2014, respectively, at fair value)		19,390,053		19,144,087
Less loan commissions, net of origination costs		87,866		89,411
Less allowance for loan losses		60,316		55,763
Loans, net		19,241,871		18,998,913
Accrued interest and commissions receivable		284,325		292,325
Equity investments		310,915		292,345
Derivative instruments		389,677		383,703
Property and equipment, net		68,364		69,003
Other assets		700,277		310,538
Total assets		32,384,724		30,494,640
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits		4,101,549		3,696,510
Commercial paper		2,057,201		1,853,282
Borrowings and other obligations (includes $423,773 and $432,617 as of March 31, 20150 and December 31, 2014, respectively, at fair value)		1,433,337		1,514,646
Bonds (includes $14,078,391 and $13,124,319 as of March 31, 2015 and December 31, 2014, respectively, at fair value)		14,807,860		13,859,940
Accrued interest and commissions payable		206,128		239,547
Derivative instruments		631,797		383,086
Accrued expenses and other liabilities		317,672		184,393
Total liabilities		23,555,544		21,731,404
STOCKHOLDERS’ EQUITY
Subscribed and paid-in capital (authorized capital $15 billion)		4,259,300		4,250,495
Additional paid-in capital		1,927,688		1,911,487
Reserves		2,601,222		2,463,583
Other comprehensive income		32		32
Retained earnings		40,938		137,639
Total stockholders’ equity		8,829,180		8,763,236
Total liabilities and stockholders’ equity		32,384,724		30,494,640

S-1

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Unaudited Condensed Interim Financial Information for

the Three-Month Period ended March 31, 2015 and 2014

Statements of Comprehensive Income

(In thousands of U.S. dollars)

	Three Months Ended March 31,
	2015			2014
Interest income
Loans		125,323			115,405
Investments and deposits with banks, net		22,641			12,666
Loan commissions		9,953			8,556
Total interest income		157,917			136,627
Interest expense
Deposits		2,482			3,455
Commercial paper		1,821			2,339
Bonds		65,835			59,673
Borrowings and other obligations		5,573			5,316
Commissions		3,811			5,472
Total interest expense		79,522			76,255
Net interest income		78,395			60,372
Provision (credit) to allowance for loan losses		4,553			(5,345	)
Net interest income, after provision (credit) to allowance for loan losses		73,842			65,717
Non-interest income
Other commissions		2,930			3,854
Dividends and equity in earnings of investees		96			23
Other income		427			329
Total non-interest income		3,453			4,206
Non-interest expenses
Administrative expenses		32,476			29,060
Other expenses		3,156			70
Total non-interest expenses		35,632			29,130
Net income before unrealized changes in fair value related to financial instruments		41,663			40,793
Unrealized changes in fair value related to financial instruments		(725	)		3,948
Net income		40,938			44,741
Other comprehensive income		—			79
Total comprehensive income		40,938			44,820

S-2

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Unaudited Condensed Interim Financial Information for

the Three-Month Period ended March 31, 2015 and 2014

Statements of Cash Flows

(In thousands of U.S. dollars)

	Three Months Ended March 31,
	2015			2014
Cash flows from operating activities
Net income		40,938			44,741
Adjustments to reconcile net income to net cash (used in) provided by operating activities
Unrealized (gain) loss on trading securities		(5,766	)		(6,679	)
Amortization of loan commissions, net of origination costs		(3,528	)		(2,819	)
Provision (credit) to allowance for loan losses		4,553			(5,345	)
Impairment charge for equity investments		282			—
Equity in earnings of investees		—			—
Depreciation of property and equipment		1,423			1,112
Amortization of deferred charges		825			790
Provision for employees’ severance indemnities and benefits		2,432			2,146
Provisions for employees’ savings plan		337			330
Unrealized changes in fair value related to financial instruments		725			(3,948	)
Net changes in operating assets and liabilities
Severance indemnities paid or advanced		(1,942	)		(1,492	)
Employees’ savings plan paid or advanced		(455	)		(606	)
Trading securities, net		(109,628	)		(429,188	)
Interest and commissions receivable		8,000			(12,284	)
Other assets		(390,564	)		(27,165	)
Accrued interest payable		(33,419	)		(1,791	)
Accrued expenses and other liabilities		133,224			99,663
Total adjustments and net changes in operating assets and liabilities		(393,501	)		(387,276	)
Net cash used in operating activities		(352,563	)		(342,535	)
Cash flows from investing activities
Purchases of other investments		(1,388,727	)		(486,813	)
Maturities of other investments		834,560			409,987
Loan origination and principal collections, net		(243,983	)		(69,871	)
Equity investments, net		(18,852	)		(7,351	)
Purchases of property and equipment		(784	)		(1,286	)
Net cash used in investing activities		(817,786	)		(155,334	)

S-3

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Unaudited Condensed Interim Financial Information for

the Three-Month Period ended March 31, 2015 and 2014

Statements of Cash Flows continued

(In thousands of U.S. dollars)

	Three Months Ended March 31,
	2015			2014
Cash flows from financing activities
Net increase in deposits		405,039			389,645
Net increase (decrease) in commercial paper		203,919			(775,553	)
Proceeds from issuance of bonds		1,339,894			1,311,747
Repayment of bonds		(142,457	)		(364,101	)
Proceeds from borrowings and other obligations		7,935			29,490
Repayment of borrowings and other obligations		(97,066	)		(22,274	)
Distributions to stockholders’ funds		—			(69,000	)
Proceeds from issuance of shares		25,006			82,189
Net cash provided by financing activities		1,742,270			582,143
Net increase in cash and cash equivalents		571,921			84,274
Cash and cash equivalents at beginning of period		1,420,414			1,692,259
Cash and cash equivalents at end of period		1,992,335			1,776,533
Consisting of:
Cash and due from banks		144,107			162,088
Deposits with banks		1,848,228			1,614,445
		1,992,335			1,776,533
Supplemental disclosure
Interest paid during the period		109,901			74,102
Non-cash financing activities
Change in derivative instrument assets		5,974			107,148
Change in derivative instrument liabilities		248,711			(49,685	)

S-4

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Unaudited Condensed Interim Financial Information for

the Three-Month Period ended March 31, 2015

Statement of Stockholders’ Equity

(In thousands of U.S. dollars)

	Subscribed and paid-in capital		Additional paid-in capital		Reserve Pursuant to						Other Comprehensive Income		Retained earnings			Total stockholders’ equity
					General Reserve		Article No 42 of by-laws		Total
Balance at December 31, 2014		4,250,495		1,911,487		2,012,149		451,434		2,463,583		32		137,639			8,763,236
Capital increase		8,805		16,201		—		—		—		—		—			25,006
Appropriated for general reserve		—		—		123,874		—		123,874		—		(123,874	)		—
Appropriated for general reserve to Article 42 of by-laws		—		—		—		13,765		13,765		—		(13,765	)		—
Other comprehensive income		—		—		—		—		—		—		—			—
Net Income		—		—		—		—		—		—		40,938			40,938
Balance at March 31, 2015		4,259,300		1,927,688		2,136,023		465,199		2,601,222		32		40,938			8,829,180

	Subscribed and paid-in capital		Additional paid-in capital		Reserve Pursuant to						Other Comprehensive Income			Retained earnings			Total stockholders’ equity
					General Reserve		Article No 42 of by-laws		Total
Balance at December 31, 2013		3,941,380		1,342,903		1,895,592		430,234		2,325,826		(317	)		206,757			7,816,549
Capital increase		28,940		53,249		—		—		—		—			—			82,189
Appropriated for general reserve		—		—		116,557		—		116,557		—			(116,557	)		—
Appropriated for general reserve to Article 42 of by-laws		—		—		—		21,200		21,200		—			(21,200	)		—
Distribution to stockholders’ funds		—		—		—		—		—		—			(69,000	)		(69,000	)
Other comprehensive income		—		—		—		—		—		79			—			79
Net Income		—		—		—		—		—		—			44,741			44,741
Balance at March 31, 2014		3,970,320		1,396,152		2,012,149		451,434		2,463,583		(238	)		44,741			7,874,558

S-5

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Notes to Unaudited Condensed Interim Financial Information

As of March 31, 2015 and 2014 and for the Year ended December 31, 2014

(In thousands of U.S. dollars)

(1) Basis of Presentation

The condensed interim financial information as of March 31, 2015 and for the three-month period ended March 31, 2015 and 2014 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, 2015 are not necessarily an indication of the results to be expected for the full year 2015.

This condensed interim financial information should be read in conjunction with CAF’s financial statements for each of the years in the three-year period ended December 31, 2014 and the notes thereto presented in the accompanying prospectus.

(2) Allowance for Loan Losses

For the three-month period ended March 31, 2015, CAF had a provision for loan losses of $4,553 compared to a credit for loan losses of $5,345 for the same period in 2014. The allowance for loan losses as a percentage of the loan portfolio was 0.3% at March 31, 2015, compared to 0.2% at March 31, 2014.

Changes in the provision occurred mainly because of an improvement in the determination of the loan loss provision that became effective as of September 2013 and which resulted in a loan loss provision reversal. This improvement, which is in line with many other supranationals, incorporates recovery rates that differ between sovereign guaranteed loans and non-sovereign guaranteed loans.

The credit and provision in the periods described above reflect management’s estimates for both general and specific provisions. The allowance for loan losses is estimated considering the credit risk exposure, probability of default and, beginning December 31, 2014, loss given default, based on external data provided by risk rating agencies, recognizing such effects in profit or loss for the period.

Allowance for loan losses of sovereign loans is established by CAF based on the individual long-term foreign currency debt rating of the borrower countries considering the average rating of three recognized international risk rating agencies as of the date of the financial statements preparation. The country risk rating considers a default probability. Given CAF’s status as a preferred creditor and taking into account the immunities and privileges conferred by its shareholder countries, which are established in CAF’s by-laws and other similar agreements, a factor reflecting a lower default probability — usually equivalent to three levels above its risk rating — is used.

Regarding the non-sovereign loan portfolio, the allowance for loan losses is based on the individual local currency debt rating of the borrower countries considering the average rating of the aforementioned agencies. As of December 31, 2014, by virtue of the change in the determination of the allowance for loan losses, the allowance for loan losses is calculated by considering the internal rating of each borrower, using the probability of default corresponding to the average of the equivalent categories of the risk rating agencies.

For those cases where the category equivalent to the rating of a given borrower determined by any of the agencies is higher than the rating in local currency of the country corresponding to such borrower, or if for any reason there is no rating, the rating in local currency of such country determined by the risk rating agencies will be used.

S-6

A specific allowance for loan losses is established by CAF for impaired loans. 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 original loan’s effective interest rate. The allowance for loan losses is reported as a deduction from loans.

(3) Marketable Securities

Trading Securities

A summary of trading securities follows:

	March 31, 2015				December 31, 2014
	Amount		Average maturity (years)		Amount		Average maturity (years)
U.S. Treasury Notes		377,274		3.01		1,920,441		1.88
Non-U.S. governments and government entities bonds		172,660		0.81		195,373		0.60
Financial institutions and corporate securities:
Commercial papers		2,379,064		0.24		1,075,478		0.32
Certificates of deposit		2,516,634		0.35		2,264,749		0.46
Bonds		1,283,768		1.61		1,183,477		1.64
Liquidity Fund		214,040		0.75		199,059		1.00
Collateralized mortgage obligation		302,745		4.64		292,214		5.55
		6,696,251		0.76		5,014,977		1.02
		7,246,185		0.88		7,130,791		1.24

(4) Loans

Loans include short-, medium- and long-term loans to finance projects, working capital and trade activities. The majority of the loans are to Series “A” and “B” stockholder countries, or to private institutions or companies of these countries.

S-7

Loans by country are summarized as follows:

	March 31, 2015		December 31, 2014
Stockholder country:
Argentina		2,725,683		2,718,009
Bolivia		1,914,673		1,909,509
Brazil		1,951,514		1,932,414
Colombia		1,682,290		1,768,619
Costa Rica		129,671		128,627
Dominican Republic		223,639		172,458
Ecuador		2,828,206		2,824,501
Jamaica		5,497		5,628
Mexico		317,086		127,526
Panama		1,260,506		1,254,545
Paraguay		265,530		249,271
Peru		2,382,078		2,333,123
Portugal		15,000		15,000
Spain		189,583		191,875
Uruguay		538,506		509,247
Venezuela		2,959,690		3,001,625
Loans		19,389,152		19,141,977
Fair value adjustments		901		2,110
Carrying value of loans		19,390,053		19,144,087

Fair value adjustments to the carrying value of loans represent adjustments to the carrying value of loans for which the fair value option is elected.

At March 31, 2015 and December 31, 2014, loans in other currencies were granted for an equivalent of $42,074 and $41,780, respectively, principally in Bolivian bolivianos, Peruvian nuevos soles, Paraguaian guarani, Mexican pesos and Colombian pesos. At March 31, 2015 and December 31, 2014, loans include fixed interest rate loans of $82,742 and $73,164, respectively.

Loans classified by public sector and private sector borrowers, are as follows:

	March 31, 2015		December 31, 2014
Public Sector		15,882,602		15,564,049
Private Sector		3,506,550		3,577,928
		19,389,152		19,141,977

The average yield of the loan portfolio is shown below:

	March 31, 2015				December 31, 2014
	Amount		Average yield (%)		Amount		Average yield (%)
Loans		19,389,152		2,59		19,141,977		2,62

S-8

Loans by industry segments are as follows:

	March 31,				December 31,
	2015		%		2014		%
Agriculture, hunting and forestry		67,030		—		63,389		—
Manufacturing		367,007		2		399,627		2
Electricity, gas and water supply		6,529,384		34		6,613,662		35
Transport, warehousing and communications		7,037,892		36		7,091,245		37
Commercial banks		1,518,924		8		1,191,862		6
Development banks		635,682		3		571,100		3
Social and other infrastructure programs		3,059,070		16		3,047,281		16
Others		174,163		1		163,811		1
		19,389,152		100		19,141,977		100

Loans mature as follows:

	March 31, 2015		December 31, 2014
Remaining maturities:
Less than one year		2,763,220		2,717,459
Between one and two years		2,152,511		2,140,348
Between two and three years		1,927,326		1,919,126
Between three and four years		1,726,756		1,713,659
Between four and five years		1,829,178		1,815,106
Over five years		8,990,161		8,836,279
		19,389,152		19,141,977

Loan portfolio is classified depending on the credit risk type, as follows:

	March 31, 2015		December 31, 2014
Sovereign guaranteed		15,553,591		15,318,111
Non-sovereign guaranteed		3,835,561		3,823,866
		19,389,152		19,141,977

Loan portfolio quality

The loan portfolio quality indicators are presented below:

	March 31, 2015			December 31, 2014
Impaired Loans		0.0			0.0
Loans written-off		0.0			4,125
Purchases of loan portfolio		0.0			0
Sales of loan portfolio		4,688			118,008
Trouble debt restructured		0			0
Non-accrual loans		16,545			16,545
Overdue loans		0.0			0.0
Allowance for loan losses as a percentage of loan portfolio		0.3	%		0.3	%
Nonaccrual loans as a percentage of loan portfolio		0.09	%		0.09	%
Overdue loan principal as a percentage of loan portfolio		0.0	%		0.0	%

S-9

A/B Loans

CAF administers loan-participations sold, and only assumes the credit risk for the portion of the loan owned by CAF. At March 31, 2015 and December 31, 2014, CAF maintained loans of this nature amounting to $1,493,038 and $1,558,400, respectively; whereby other financial institutions provided funds for $1,055,673; and $1,067,057, respectively.

Allowance for Loan Losses

Changes in the allowance for loan losses are presented below:

	For the three-month period ended March 31, 2015							For the year ended December 31, 2014
	Sector					Total		Sector					Total
	Sovereign		Non-sovereign					Sovereign		Non-sovereign
Balances at beginning of period		20,241		35,522			55,763		10,898		27,438			38,336
Provision (credit) to results of operations		6,259		(1,706	)		4,553		9,343		12,209			21,552
Loans written-off		—		—			—		—		(4,125	)		(4,125	)
Recoveries		—		—			—		—		—			—
Balances at end of period		26,500		33,816			60,316		20,241		35,522			55,763

(5) Deposits

A summary of deposits follows:

	March 31, 2015		December 31, 2014
Demand deposits		83,273		72,479
Time deposits:
Less than one year		4,018,276		3,624,031
		4,101,549		3,696,510

At March 31, 2015 and December 31, 2014, the interest rates on deposits ranged from 0.03% to 1.798% and from 0.06% to 1.812%, respectively. Deposits are issued for amounts equal to or more than $100. Total deposits in other currencies amounted to $139,031 and $157,324, at March 31, 2015 and December 31, 2014, respectively.

(6) Commercial Papers

CAF maintains commercial paper of $2,057,201 as of March 31, 2015 and 92% of CAF’s commercial paper will mature in 2015. At December 31, 2014, $1,853,282 of CAF’s commercial paper matures in the year 2015. At March 31, 2015 and December 31, 2014, the interest rates on commercial paper ranged from 0.13% to 0.545% and from 0.145% to 0.458%, respectively.

S-10

(7) Borrowings

A summary of borrowings follows:

	March 31, 2015		December 31, 2014
U.S. dollars		1,352,790		1,443,140
Peruvian nuevos soles		22,747		22,044
Venezuelan bolivars		30,159		30,159
Other currencies		6,368		5,853
		1,412,064		1,501,196
Fair value adjustments		21,273		13,450
Carrying value of borrowings		1,433,337		1,514,646

At March 31, 2015 and December 31, 2014, there were fixed interest-bearing borrowings in the amount of $ 551,799 and $545,171, respectively. At March 31, 2015 and December 31, 2014, the interest rates on borrowing ranged from 0.1324% to 12% during both periods.

Borrowings, by remaining maturities, are summarized below:

	March 31, 2015		December 31, 2014
Remaining maturities:
Less than one year		271,917		246,009
Between one and two years		333,484		441,506
Between two and three years		130,344		105,614
Between three and four years		153,878		184,241
Between four and five years		114,069		113,625
Over five years		408,372		410,201
		1,412,064		1,501,196

At March 31, 2015 and December 31, 2014, there were unused term credit facilities amounting to $564,463 and $569,342, respectively.

S-11

(8) Bonds

An analysis of bonds follows:

	March 31, 2015						December 31, 2014
	Outstanding principal						Outstanding principal
	At original exchange rate		At spot exchange rate		Weighted average cost, after swaps (%) (period end)		At original exchange rate		At spot exchange rate		Weighted average cost, after swaps (%) (Year end)
U.S. dollars		7,158,857		7,158,857		1.87		6,109,320		6,109,320		2.03
Euros		3,435,706		2,747,273		1.67		3,571,411		3,230,302		1.62
Japanese yen		492,096		367,715		2.29		418,819		294,807		2.45
Colombian pesos		112,565		86,081		2.64		112,565		92,687		2.64
Australian dollars		525,427		437,116		1.29		525,233		471,269		1.26
Swiss francs		2,273,104		2,189,106		1.71		2,054,538		1,950,086		1.71
Mexican pesos		98,107		86,036		2.67		98,108		89,545		2.67
Peruvian nuevos soles		26,123		27,640		0.77		32,331		35,412		0.73
Chinese renminbi		96,618		96,771		1.37		96,618		96,660		1.37
Norwegian kroner		390,828		296,139		1.47		390,828		323,777		1.43
Hong Kong dollars		386,060		386,287		1.73		386,060		386,212		1.69
Turkish lira		70,093		60,086		0.34		70,089		67,408		0.34
South African rand		22,594		20,769		0.34		22,594		21,848		0.85
		15,088,178		13,959,876				13,888,514		13,169,333
Fair value adjustments				847,984						690,607
Carrying value of bonds				14,807,860						13,859,940

A summary of the bonds outstanding, by remaining maturities, follows:

	March 31, 2015		December 31, 2014
Remaining maturities:
Less than one year		2,322,283		1,264,543
Between one and two years		1,190,529		1,560,577
Between two and three years		3,064,142		2,086,958
Between three and four years		661,032		1,315,182
Between four and five years		835,436		937,189
Over five years		7,014,756		6,724,065
		15,088,178		13,888,514

At March 31, 2015 and December 31, 2014 fixed interest rate bonds amounted to $13,399,872 and $13,059,963, respectively, of which $7,947,032 and $7,667,123, correspond to the same dates respectively, are denominated in Japanese yen, Euros, Swiss francs, Australian dollars, Colombian pesos, Mexican pesos, Hong Kong dollars, Norwegian kroner, Chinese renminbi, Peruvian nuevos soles, Turkish lira and South African rand.

(9) 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 exposure 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 financial instrument is positive, the

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counterparty owes CAF, creating credit risk for CAF. When the fair value of a derivative financial instrument is negative, CAF owes the counterparty and, therefore, it does not have credit risk. CAF minimizes the credit risk in derivative financial 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 financial 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 identified loans, bonds or borrowings and other obligations with fixed interest rates or non U.S. currency exposure.

CAF also utilizes futures derivatives instruments to reduce exposure to risk. There are contracts for delayed delivery of securities or money market instruments in which the seller agrees to make delivery at a specified future date of a specified instrument at a specified price or yield. Initial margin requirements are met with cash or securities. CAF generally closes out open positions prior to maturity. Therefore, cash receipts or payments are limited to the change in fair value of the future contracts.

CAF monitors the credit risk associated with derivative financial instruments. 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 derivative financial instruments, CAF enters into credit support agreements with its major swap counterparties. This provides risk mitigation, as the swap contracts are regularly mark-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 the counterparty’s credit rating deteriorates. This collateral is in the form of cash or highly rated and liquid government securities.

CAF does not offset, for each counterparty, the fair value amount recognized for derivative financial instruments with the fair value amount recognized for the collateral, whether posted or received, under master netting arrangements executed with the same counterparty. CAF reports separately the cumulative gross amounts for the receivable from and payable to for derivative financial instruments.

At March 31, 2015 and December 31, 2014, balance sheet details related to CAF’s derivative financial instruments is as follows:

	Derivative assets				Derivative liabilities
	March 31,		December 31,		March 31,		December 31,
	2015		2014		2015		2014
Interest rate swap		197,119		183,323		3,347		33,752
Cross-currency swap		191,131		199,790		628,226		349,150
Futures		—		—		224		155
Forward contracts		1,427		590		—		29
		389,677		383,703		631,797		383,086

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The following table presents the notional amount and fair values of interest rate swaps and cross-currency swaps and the underlying hedged items at March 31, 2015 and December 31, 2014:

	Notional amount				Fair value
	Interest rate swap		Cross- currency swap		Derivative assets		Derivative liabilities
At March 31, 2015 —
Loans		—		18,351		4,234		—
Loans		4,145		—		—		63
Borrowings		402,500		—		21,273		—
Bonds		6,407,840		—		175,846		3,283
Bonds		—		7,950,869		186,897		628,227
		6,814,485		7,969,220		388,250		631,573

	Notional amount				Fair value
	Interest rate swap		Cross- currency swap		Derivative assets		Derivative liabilities
At December 31, 2014 —
Loans		—		18,351		3,151		187
Loans		6,125		—		—		46
Borrowings		419,167		—		13,766		316
Bonds		5,357,840		—		169,557		33,390
Bonds		—		7,803,396		196,639		348,963
		5,783,132		7,821,747		383,113		382,902

The amounts recognized for the right to receive collateral that have been offset at March 31, 2015 and at December 31, 2014, were $127,941 and $99,413, respectively. At March 31, 2015 and at December 31, 2014, the amounts recognized for the obligation to post collateral that have been offset, were $305,289 and $132,959, respectively.

As of March 31, 2015 and December 31, 2014 all of CAF’s derivatives which had been designated as hedging relationship 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.

The following table presents the notional amount and fair values of futures and forwards and the underlying hedged items at March 31, 2015 and December 31, 2014:

	Start date		Termination date		Contract Currency		Notional amount		Fair Value Derivative assets
At March 31, 2015 —
Forward contracts		Various		Until May 2015		Various		1,428		1,427

	Start date		Termination date		Contract Currency		Notional amount		Fair Value Derivative liabilities
At March 31, 2015 —
Futures		Feb/Mar 2015		June 2015		Various		37,600		(81	)
Futures		Feb/Mar 2015		June 2015		Various		15,100		(143	)
								52,700		(224	)

	Start date		Termination date		Contract Currency		Notional amount			Fair Value Derivative assets
At December 31, 2013 —
Futures		Nov/Dec 2013		March 2014		USD		(56,900	)		244

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	Start date		Termination date		Contract Currency		Notional amount		Fair Value Derivative assets
At December 31, 2014 —
Forward contracts		Various		Until Sep 2015		Various		560		590

	Start date		Termination date		Contract Currency		Notional amount			Fair Value Derivative assets
At December 31, 2014 —
Futures		Nov/Dec 2014		March 2015		Various		49,900			(81	)
Futures		Nov/Dec 2014		March 2015		Various		4,900			(74	)
								54,800			(155	)
Forward contracts		Various		Until Sep 2015		Various		(560	)		(29	)
								54,420			(184	)

	Start date		Termination date		Contract Currency		Notional amount			Fair Value Derivative assets
At December 31, 2013 —
Futures		Nov/Dec 2013		March 2014		USD		(56,900	)		244

The amount recognized for the obligation to post collateral related with futures that have been offset at Mach 31, 2015 and year end 2014, was US$ $ 2,720 and US$1,374, respectively.

For the three month period ended March 31 2015 and for the year ended December 31, 2014, all of CAF´s derivatives which had been designated as hedging relationship were considered fair valued 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 comprehensive income.

CAF enters into International Swaps and Derivatives Association, Inc. (ISDA) master netting arrangements with substantially all of its derivatives counterparties. These legally enforceable master netting arrangements give CAF the right to take cash or liquidate securities held as collateral and to offset receivables and payables with the same counterparty, in the event of default by the counterparty. The following tables present information about the offsetting of derivative instruments, although CAF has elected not to offset any derivative financial instruments by counterparty in the balance sheet:

At March 31, 2015

Derivative assets			Gross amounts not offset in the balance sheet
Description	Gross amounts of recognized assets		Financial instruments			Cash and securities collateral received			Net amount
Swaps		388,250		(224,979	)		(127,941	)		35,330

Derivative liabilities				Gross amounts not offset in the balance sheet
Description	Gross amounts of recognized liabilities			Financial instruments		Cash and securities collateral pledged		Net amount
Swaps		(631,573	)		224,979		305,289		(101,305	)

At December 31, 2014

Derivative assets			Gross amounts not offset in the balance sheet
Description	Gross amounts of recognized assets		Financial instruments			Cash and securities collateral received			Net amount
Swaps		383,113		(201,474	)		(99,413	)		82,226

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Derivative liabilities				Gross amounts not offset in the balance sheet
Description	Gross amounts of recognized liabilities			Financial instruments		Cash and securities collateral pledged		Net amount
Swaps		(382,901	)		201,474		132,959		(48,468	)

(10) Fair Value Measurement

ASC 820 “Fair Value Measurements and Disclosures” establishes a single authoritative definition of fair value, sets out a framework for measuring fair value, and provides a hierarchical disclosure framework for assets and liabilities measured at fair value. The following tables present for each of the fair-value hierarchy levels CAF’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2015 and December 31, 2014:

Items Measured at Fair Value on a Recurring Basis

	Level 1		Level 2		Level 3		Total
At March 31, 2015 —
Assets —
Marketable securities:
U.S. Treasury Notes		377,274		—		—		377,274
Bonds of non-U.S. governments and government entities		172,660		—		—		172,660
Financial institutions and corporate securities:
Commercial papers		2,379,064		—		—		2,379,064
Certificate of deposits		2,516,634		—		—		2,516,634
Bonds		1,283,768		—		—		1,283,768
Collateralized mortgage obligation		302,745		—		—		302,745
Liquidity Funds		214,040		—		—		214,040
		6,696,251		—		—		6,696,251
		7,246,185		—		—		7,246,185
Loans		—		18,737		—		18,737
Derivative instruments:
Futures		—		—		—		—
Forwards		—		1,427		—		1,427
Interest rate swap		—		197,119		—		197,119
Cross-currency swap		—		191,131		—		191,131
		—		389,677		—		389,677
		7,246,185		408,414		—		7,654,599
Liabilities —
Borrowings		—		423,773		—		423,773
Bonds		—		14,078,391		—		14,078,391
Derivative instruments:
Futures		—		224		—		224
Interest rate swap		—		3,347		—		3,347
Cross-currency swap		—		628,226		—		628,226
Forward contracts		—		—		—		—
		—		631,797		—		631,797
		—		15,133,961		—		15,133,961

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	Level 1		Level 2		Level 3		Total
At December 31, 2014 —
Assets —
Marketable Securities:
U.S. Treasury Notes		1,920,441		—		—		1,920,441
Bonds of non-U.S. governments and government entities		195,373		—		—		195,373
Financial institutions and corporate securities:
Commercial papers		1,075,478		—		—		1,075,478
Certificate of deposits		2,264,749		—		—		2,264,749
Bonds		1,183,477		—		—		1,183,477
Collateralized mortgage obligation		292,214		—		—		292,214
Liquidity Funds		199,059		—		—		199,059
		5,014,977		—		—		5,014,977
		7,130,791		—		—		7,130,791
Loans		—		21,954		—		21,954
Derivative instruments:
Forward contracts		—		590		—		590
Interest rate swap		—		183,323		—		183,323
Cross-currency swap		—		199,790		—		199,790
		—		383,703		—		383,703
		7,130,791		405,657		—		7,536,448
Liabilities —
Borrowings		—		432,617		—		432,617
Bonds		—		13,124,319		—		13,124,319
Derivative instruments:
Futures		—		155		—		155
Interest rate swap		—		33,752		—		33,752
Cross-currency swap		—		349,150		—		349,150
Forward contracts		—		29		—		29
		—		383,086		—		383,086
		—		13,940,022		—		13,940,022

During the three month period ended March 31, 2015 and the year ended December 31, 2014, there were no transfers between levels 1, 2 and 3.

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Items that are not measured at fair value

The carrying amount and estimated fair values of CAF’s financial instruments that are not recognized in the balance sheets at fair value are as follows:

			March 31, 2015				December 31, 2014
	Hierarchy level		Carrying amount		Estimated fair value		Carrying amount		Estimated fair value
Financial assets:
Cash and due from banks		1		144,107		144,107		141,147		141,147
Deposits with banks		1		1,848,228		1,848,228		1,279,267		1,279,267
Other investments		1		2,150,775		2,150,775		1,596,608		1,596,608
Loans, net		2		19,223,134		19,227,074		18,976,959		18,981,432
Equity investments (Cost Method)		2		256,483		256,483		249,642		249,642
Accrued interest and commissions receivable		2		284,325		284,325		292,325		292,325
Financial liabilities:
Deposits		2		4,101,549		4,101,549		3,696,510		3,696,510
Commercial paper		2		2,057,201		2,057,201		1,853,282		1,853,282
Borrowings		2		1,009,564		1,010,957		1,082,029		1,083,696
Bonds		2		729,469		730,916		735,830		737,349
Accrued interest payable		2		206,128		206,128		239,547		239,547

(12) Commitments and Contingencies

Commitments and contingencies include the following:

	March 31, 2015		December 31, 2014
Credit agreements subscribed- eligibles		5,034,369		5,281,911
Credit agreements subscribed- non eligibles		2,574,586		2,836,455
Lines of credit for foreign trade		4,243,432		4,718,975
Letters of credit for foreign trade		14,625		16,776
Guarantees		279,368		311,819
Equity investments agreements subscribed		289,941		286,149

These commitments and contingencies result from the normal course of CAF’s 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. Those commitments that have fulfilled the necessary requirements for disbursement are classified as eligibles.

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.

In the event the credit lines are not utilized, no additional cost is incurred by CAF.

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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 millions of U.S. dollars):

	March 31, 2015		December 31, 2014
Less than one year		15.7		45,6
Between one and five years		83.5		52.3
Over five years		180.1		213.9
		279.4		311.8

(13) Segment Operations

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 Three-month periods ended March 31, 2015 and 2014, loans made to or guaranteed by six countries individually generated in excess of 10% of interest income, before swaps, as follows (in thousands of U.S. dollars):

	Three Months Ended March 31,
	2015		2014
Argentina		18,922		16,710
Bolivia		12,450		11,248
Brazil		13,431		—
Colombia		—		11,762
Ecuador		17,497		16,495
Perú		15,751		16,390
Venezuela		18,015		17,796

(14) ACCUMULATED OTHER COMPREHENSIVE INCOME

Accumulated other comprehensive income balances as of March 31, 2015 and 2014, and the amounts reclassified out of accumulated other comprehensive income affected net income were as follows:

	Three Months Ended
	March 31, 2015		March 31, 2014
Balances at beginning of the period		32		(317	)
Unrecognized changes in assets/ liabilities under benefit pension plan		—		—
Amortization of defined benefit pension items(1)		—		79
Balances at the end of the period		32		(238	)

(2) This accumulated other comprehensive income component is included in administrative expenses in the statement of comprehensive income.

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(15) Subsequent Events

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, except for:

• On April 15, 2015, CAF retapped a CHF 200 million bond for an additional CHF 150 million, 0.5%, due 2026 under its Medium Term Notes Programme.

• On May 21, 2015, CAF issued bonds for NOK 1 billion, 3.05%, due 2035, under its Medium Term Notes Programme.

• On June 5, 2015, CAF issued bonds for AUD 225 million, 4.50%, due 2025, under its Australian Medium Term Notes Programme

• On June 15, 2015, CAF issued bonds for USD 50 million, 2.21%, due 2020, under its Medium Term Notes Programme.

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CORPORACIÓN ANDINA DE FOMENTO (CAF)

SUPPLEMENTARY INFORMATION (UNAUDITED)

AS OF MARCH 31, 2015

BONDS

Title	Interest Rate	Date of Agreement of Issue		Year of Final Maturity		Currency	Principal Amount Outstanding at March 31, 2015 (in millions)
7.79% Yankee Bonds	Fixed		1997		2017	USD		50.0
7.875%% Yankee Bonds	Fixed		2002		2022	USD		85.0
51/8% Yankee Bonds	Fixed		2005		2015	USD		250.0
5.75% Yankee Bonds	Fixed		2006		2017	USD		250.0
Peruvian Soles Bonds	Fixed		2006		2018	PEN(2)		85.7
5.75% Yankee Bonds	Fixed		2007		2017	USD		115.4
5.75% Yankee Bonds	Fixed		2008		2017	USD		250.0
Colombian Peso Bonds	Fixed		2008		2018	COP		94,250.0
8.125% Yankee Bonds	Fixed		2009		2019	USD		733.7
Colombian Peso Bonds	Fixed		2009		2019	COP		127,500.0
4.30% Euro Yen Bonds	Fixed		2009		2019	JPY		10,000.0
Structured Note	Floating		2010		2017	USD		50.0
3.75% Yankee Bonds	Fixed		2010		2016	USD		600.0
Structured Note	Floating		2010		2017	USD		50.0
2.625% Swiss Franc Bonds	Fixed		2010		2015	CHF		250.0
4.625% Euro Bond	Fixed		2010		2018	EUR		400.0
1.82% Samurai Bonds	Fixed		2010		2015	JPY		4,600.0
3.625% Panamanian Bonds	Fixed		2011		2016	USD		40.0
3.75% Yankee Bonds	Fixed		2011		2016	USD		500.0
Mexican Pesos Bonds	Fixed		2011		2021	MXN(3)		1,317.0
2.625% Swiss Franc Bonds	Fixed		2011		2015	CHF		130.0
2.75% Swiss Franc Bonds	Fixed		2011		2017	CHF		125.0
4.625% Euro Bonds	Fixed		2011		2018	EUR		250.0
1.0% Samurai Bonds	Fixed		2011		2015	JPY		10,000.0
5.0% Euro Dollar Bond	Fixed		2012		2042	USD		50.0
4.375% Yankee Bonds	Fixed		2012		2022	USD		1,092.9
4.375% Yankee Bonds	Fixed		2012		2022	USD		407.1
1.5% Swiss Franc Bonds	Fixed		2012		2018	CHF		300.0
3.55% Dim Sum	Fixed		2012		2015	CNY(7)		600.0
Euro Bond (Schuldschein)	Fixed		2012		2027	EUR		82.0
Euro Bond (Schuldschein)	Fixed		2012		2032	EUR		60.0
4.03% Euro Hong Kong Dollar Bonds	Fixed		2012		2022	HKD(8)		400.0
4.0% Euro Hong Kong Dollar Bonds	Fixed		2012		2024	HKD		398.0
1.85% Euro Yen Bonds	Fixed		2012		2023	JPY		6,000.0
1.375% Swiss Franc Bonds	Fixed		2013		2021	CHF		250.0
Euro Dollar Bond	Floating		2013		2016	USD		100.0
3.25% Euro Bonds	Fixed		2013		2033	EUR		100.0
1.375% Swiss Franc Bonds	Fixed		2013		2021	CHF		100.0
3.25% Euro Bonds	Fixed		2013		2033	EUR		100.0
4.27% Euro Hong Kong Dollar Bonds	Fixed		2013		2028	HKD		940.0
Euro Dollar Bonds	Floating		2013		2023	USD		100.0
1.50% Swiss Franc Bonds	Fixed		2013		2020	CHF		250.0
3.66% Euro Bond	Fixed		2013		2033	EUR		51.0
1.85% Euro Yen Bonds	Fixed		2013		2023	JPY		4,600.0

S-21

Title	Interest Rate	Date of Agreement of Issue		Year of Final Maturity		Currency	Principal Amount Outstanding at March 31, 2015 (in millions)
4.25% Kangaroo Bonds	Fixed		2013		2016	AUD(9)		350.0
3.625% Euro Bond (Schuldschein)	Fixed		2013		2033	EUR		200.0
Euro Dollar Bonds	Floating		2013		2015	USD		200.0
6.25% Kangaroo Bonds	Fixed		2013		2023	AUD		225.0
3.31% Euro Bonds	Fixed		2013		2028	EUR		250.7
3.51% Euro Bonds	Fixed		2014		2034	EUR		65.0
2.0% Euro Bonds	Fixed		2014		2024	CHF		300.0
3.500% Euro Bonds	Fixed		2014		2039	EUR		200.0
4.29% Euro Bonds	Fixed		2014		2026	NOK(10)		1,500.0
4.070% Euro Bonds	Fixed		2014		2024	NOK		900.0
3.925% Euro Bonds	Fixed		2014		2029	HKD		1,257.0
3.05% Euro Bonds	Fixed		2014		2030	EUR		50.0
Euro Dollar Bonds	Floating		2014		2017	USD		200.0
1.875% Euro Bonds	Fixed		2014		2021	EUR		750.0
1.500% Yankee Bonds	Fixed		2014		2017	USD		1,000.0
1.50% Swiss Franc Bonds	Fixed		2014		2028	CHF		225.0
6.5% ZAR Uridashi Bonds	Fixed		2014		2018	ZAR(11)		253.0
7.35% TRY Uridashi Bonds	Fixed		2014		2018	TRY(12)		157.0
Yankee Bonds	Floating		2015		2018	USD		1,000.0
0,51% Swiss Franc Bonds	Fixed		2015		2026	CHF		200.0
1,9% Euro Dollar Bonds	Fixed		2015		2019	USD		50.0
0,68% Euro Yen Bonds	Fixed		2015		2025	JPY		8,900.0

Note: From March 31, 2015 to the date of this prospectus supplement, CAF has issued the equivalent total amount of $133.2 million in Norwegian Kroner (NOK), $172.7 million in Australian Dollars (AUD) and $ 50.0 million in United States Dollars (USD).

(1) Yen.

(2) Peruvian Nuevos Soles.

(3) Mexican Pesos.

(4) Swiss Francs.

(5) Colombian Pesos.

(6) Euros.

(7) Chinese Renminbi.

(8) Hong Kong Dollars.

(9) Australian Dollars.

(10) Norwegian Kroner.

(11) South African rand.

(12) Turkish Lira.

S-22

LOANS FROM COMMERCIAL BANKS, ADVANCES, DEPOSITS,

COMMERCIAL PAPER AND REPURCHASE AGREEMENTS

Title	Interest Rate		Date of Agreement of Issue		Year of Final Maturity		Currency	Principal Amount Outstanding at March 31, 2015
								(in U.S.$ millions)
Medium and Long-term Loans		Various		Various		Various	Various		1,433.3
Deposits		Floating		Various		Various	Various		4,101.5
Commercial Paper		Floating		Various		Various	USD		2,057.2

LOANS FROM MULTILATERALS AND BILATERALS, EXIMS AND EXPORT CREDIT AGENCIES

Title	Interest Rate	Date of Agreement of Issue	Year of Final Maturity	Currency			Principal Amount Outstanding at March 31, 2015 (in U.S.$ millions)
AB Svensk Exportkredit — SEK	Floating	19-Dec-13	19-Dec-18		US			30.0
ACDI	0%	30-Mar-97	30-Sep-23		CAN	(1)		0.8
Agencia Francesa de Desarrollo	Floating	07-Dec-11	10-Oct-23		US			234.0
China Development Bank — CDB	Floating	29-Nov-07	29-Nov-19		US			75.0
IADB	2%	24-May-97	24-May-23		US			0.8
Instituto de Crédito Oficial — ICO	Floating	28-May-08	15-Mar-18		US			13.1
JBIC, Japan	Floating	03-Jul-12	15-Nov-20		US			72.0
KfW (Germany)	Various	Various	Various		US			533.0
Nordic Investment Bank	Floating	Various	Various		US			41.9

(1) Canadian dollars.

S-23

CORPORACIÓN ANDINA DE FOMENTO (CAF)

SUPPLEMENTARY INFORMATION (UNAUDITED)

AS OF MARCH 31, 2015

GUARANTEED DEBT

Borrower	Date of Issue		Year of Final Maturity		Principal Amount Outstanding at March 31, 2015
					(in U.S.$ millions)
Plurinational State of Bolivia		10/03/2001		04/03/2018		13.4
Plurinational State of Bolivia		5/22/2004		5/22/2018		24.5
Republic of Peru		02/13/2006		2/13/2025		28.0
Unión Andina de Cementos S.A.A. (as successor to Cemento Andino S.A. Peru)		07/15/2010		07/13/2018		31.4
Instituto de la función registral del Estado de Mexico		08/23/2010		08/23/2030		30.5
Teyma Uruguay S.A.		10/21/2014		04/20/2016		3.0
Teyma Uruguay S.A.		10/21/2014		04/20/2016		9.0
Isolux Corsan Argentina S.A.		09/15/2011		09/15/2023		34.6
H2Olmos S.A.		10/24/2012		10/25/2032		25.6
Termochilca S.A.C.		12/21/2011		12/21/2021		43.2
Abengoa Transmisión Norte.		06/21/2013		07/13/2015		5.0
Banco Bisa		02/03/2015		08/01/2017		0.4
La Hipotecaria S.A.		03/16/2015		03/16/2018		1.7
Planta de Reserva Fría de Generación de Eten S.A		12/05/2013		12/05/2033		18.1
Mota Engil Peru S.A.		05/13/2014		05/13/2015		1.2
Mota Engil Peru S.A.		10/22/2014		10/22/2015		1.7
Mota Engil Peru S.A.		11/14/2014		10/08/2015		6.0

S-24

PART II

OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION

The following is an estimate of the Registrant’s expenses in connection with the issuance of the Securities that are the subject of this registration statement:

Securities and Exchange Commission Registration Fee	$	290,500
Fiscal and Paying Agent Fees	$	10,000
Fees of rating agencies	$	350,000
Legal fees	$	300,000
Printing of registration statement, prospectus and other documents	$	75,000
Blue Sky expenses (including counsel fees)	$	10,000
Other	$	75,000
Total	$	1,110,500

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 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.

CONTENTS

The registration statement comprises:

(1) The facing sheet.

(2) The prospectus.

(3) Part II consisting of pages II-1 to II-7.

(4) The following exhibits:

1.1 Underwriting Agreement for Debt Securities, dated August 6, 2015

1.2 Form of Underwriting Agreement Pertaining to Guarantees (1)

4.1 Fiscal Agency Agreement, including form of certain Debt Securities, dated March 17, 1998 (incorporated by reference to our registration statement No. 333-180499)

4.2 Form of Guarantee Agreement, including the form of Guarantee (1)

4.3 Form of Note

5.1 Opinion and consent of Fred Aarons, Acting General 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 CAF’s General Counsel (included in Exhibit 5.1)

23.3 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 99.1 to our registration statement No. 333-180499)

99.2 List of names and addresses of the underwriters for Guarantees (1)

(1) To be filed by post-effective amendment.

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 7th day of August, 2015.

CORPORACIÓN ANDINA DE FOMENTO
By:	/s/    L. Enrique García
	Name:     L. Enrique García
	Title:       Executive President

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 Fomento’s authorized agent in the United States, thereunto duly authorized, in Newark, Delaware, on the 7th day of August, 2015.

PUGLISI & ASSOCIATES
By:	/s/    Donald J. Puglisi
	Name:     Donald J. Puglisi
	Title:       Managing Director

EXHIBITS

Exhibit Number	Exhibits	Sequentially Numbered Page
1.1	Underwriting Agreement for Debt Securities, dated August 6, 2015
1.2	Form of Underwriting Agreement pertaining to Guarantees	*
4.1	Fiscal Agency Agreement, including form of certain Debt Securities, dated March 17, 1998 (incorporated by reference to our registration statement No. 333-180499)
4.2	Form of Guarantee Agreement, including the form of Guarantee	*
4.3	Form of Note
5.1	Opinion and consent of Fred Aarons, Acting General 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 CAF’s Acting General Counsel (included in Exhibit 5.1)	**
23.3	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 99.1 to our registration statement No. 333-180499)
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

EX-1.1

Exhibit 1.1

CORPORACIÓN ANDINA DE FOMENTO

DEBT SECURITIES

UNDERWRITING AGREEMENT

(the “Agreement”)

To the Representatives of the

several Underwriters named in the

respective Pricing Agreements

hereinafter described.

August 6, 2015

Ladies and Gentlemen:

From time to time Corporación Andina de Fomento (“CAF”), a multilateral, supranational financial institution, the principal shareholders of which are the Plurinational State of Bolivia, the Republics of Argentina, Colombia, Ecuador, Panama, Paraguay and Peru, the Federative Republic of Brazil, the Oriental Republic of Uruguay, and the Bolivarian Republic of Venezuela (each a “Full Member Shareholder Country”), proposes to enter into one or more Pricing Agreements (each a “Pricing Agreement”) in the form of Annex I hereto, with such additions and deletions as the parties thereto may determine, and, subject to the terms and conditions stated herein and therein, to issue and sell to the firms named in Schedule I to the applicable Pricing Agreement (such firms constituting the “Underwriters” with respect to such Pricing Agreement and the securities specified therein) certain of its debt securities (the “Securities”) specified in Schedule II to such Pricing Agreement (with respect to such Pricing Agreement, the “Designated Securities”). The terms and the rights of any particular issuance of Designated Securities shall be specified in the Pricing Agreement relating thereto and in or pursuant to the fiscal agency agreement (the “Fiscal Agency Agreement”) identified in such Pricing Agreement.

1. Pricing Agreement. Particular sales of Designated Securities may be made from time to time to the Underwriters of such Securities, for whom the firms designated as representatives of the Underwriters of such Securities in the Pricing Agreement relating thereto will act as representatives (the “Representatives”). The term “Representatives” also refers to a single firm acting as sole representative of the Underwriters and to an Underwriter or Underwriters who act without any firm being designated as its or their representatives. This Underwriting Agreement shall not be construed as an obligation of CAF to sell any of the Securities or as an obligation of any of the Underwriters to purchase the Securities. The obligation of CAF to issue and sell any of the Securities and the obligation of any of the Underwriters to purchase any of the Securities shall be evidenced by the Pricing Agreement with respect to the Designated Securities specified therein. Each Pricing Agreement shall specify the aggregate principal amount of such

Designated Securities, the initial public offering price of such Designated Securities, the purchase price to the Underwriters of such Designated Securities, the names of the Underwriters of such Designated Securities, the names of the Representatives of such Underwriters and the principal amount of such Designated Securities to be purchased by each Underwriter and shall set forth the date, time and manner of delivery of such Designated Securities and payment therefor. The Pricing Agreement shall also specify (to the extent not set forth in the Fiscal Agency Agreement and the registration statement and prospectus with respect thereto) the terms of such Designated Securities. A Pricing Agreement shall be in the form of an executed writing (which may be in counterparts), and may be evidenced by an exchange of telegraphic communications or any other rapid transmission device designed to produce a written record of communications transmitted. The obligations of the Underwriters under this Agreement and each Pricing Agreement shall be several and not joint.

2. Representations and Warranties. CAF represents and warrants to, and agrees with, each Underwriter that:

(a) (i) CAF has filed with the Securities and Exchange Commission (the “Commission”) a registration statement under Schedule B relating to the Designated Securities (such registration statement, including any amendment thereto and any information in a prospectus deemed to be a part thereof pursuant to Rule 430C, the “Registration Statement”); the Registration Statement and any post-effective amendment thereto, each in the form heretofore delivered or to be delivered to the Representatives for each of the Underwriters, excluding exhibits to the Registration Statement, have been declared effective by the Commission in such form; no other document with respect to the Registration Statement has heretofore been filed or transmitted for filing with the Commission (other than any prospectus filed pursuant to Rule 424(b) of the rules and regulations of the Commission under the Securities Act of 1933, as amended (the “1933 Act”) or any issuer free writing prospectus filed pursuant to Rule 433(d) of the 1933 Act, each in the form heretofore delivered to the Representatives); and no stop order suspending the effectiveness of the Registration Statement and no proceeding for that purpose has been initiated or threatened by the Commission. The term “Statutory Prospectus” as of any time means the prospectus relating to the Designated Securities that is included in the Registration Statement immediately prior to the time of the first contract of sale for the Designated Securities, including any basic prospectus or prospectus supplement deemed to be a part thereof pursuant to Rule 430C that has not been superseded or modified. The term “Final Prospectus” means the Statutory Prospectus that discloses the public offering price and other final terms of the Designated Securities and otherwise satisfies Section 10(a) of the 1933 Act.

(ii) (A) At the earliest time after the filing of the Registration Statement that CAF or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) of the 1933 Act) of the Designated Securities and (B) at the date of the applicable Pricing Agreement, CAF was not, and is not, an “ineligible issuer,” as defined in Rule 405 of the 1933 Act.

(b) (i) (A) At the time the Registration Statement initially became effective, (B) at the time of each amendment thereto for the purposes of complying with Section 10(a)(3) of the 1933 Act (whether by post-effective amendment or form of prospectus)

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and (C) at the Time of Delivery (as defined in Section 4 hereof), the Registration Statement conformed, and will conform, in all respects to the requirements of the 1933 Act and the rules and regulations of the Commission thereunder and does not and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading and (A) on the date of the Final Prospectus, (B) at the time of filing the Final Prospectus pursuant to Rule 424(b) of the 1933 Act and (C) at the Time of Delivery, the Final Prospectus conformed, and will conform, in all respects to the requirements of the 1933 Act and the rules and regulations of the Commission thereunder and does not and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that this representation and warranty shall not apply to any statements or omissions made in reliance upon and in conformity with information furnished in writing to CAF by an Underwriter of Designated Securities through the Representatives specifically for use therein.

(ii) As of the Applicable Time, neither (i) the General Use Issuer Free Writing Prospectus (as defined in Section 20(c) hereof) issued at or prior to the Applicable Time and the Statutory Prospectus identified on Schedule III of the Pricing Agreement relating to the Designated Securities, and any other documents listed or disclosures stated on Schedule III of the Pricing Agreement relating to the Designated Securities, all considered together (collectively, the “General Disclosure Package”), nor (ii) any individual Limited Use Issuer Free Writing Prospectus (as defined in Section 20(c) hereof), when considered together with the General Disclosure Package, included any untrue statement of a material fact or omitted to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The preceding sentence shall not apply to statements in or omissions from any prospectus included in the Registration Statement, any Statutory Prospectus or any Issuer Free Writing Prospectus (as defined in Section 20(c) hereof) in reliance upon and in conformity with written information furnished to CAF by any Underwriter of Designated Securities through the Representatives specifically for use therein. The term “Applicable Time” has the meaning given to such term in the relevant Pricing Agreement.

(iii) Each Issuer Free Writing Prospectus, as of its issue date and at all subsequent times through the completion of the public offer and sale of the Designated Securities or until any earlier date that CAF notified or notifies the Representatives as described in the next sentence, did not, does not and will not include any information that conflicted, conflicts or will conflict with the information then contained in the Registration Statement; provided, however, that this representation and warranty shall not apply to information included in any Issuer Free Writing Prospectus in reliance upon and in conformity with written information furnished to CAF by any Underwriter of Designated Securities through the Representatives specifically for use therein. If at any time following issuance of an Issuer Free Writing Prospectus there occurred or occurs an event or development as a result of which such Issuer Free Writing Prospectus conflicted or would conflict with the information then contained in the Registration Statement or included or would include an untrue statement of a material fact or omitted or would omit

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to state a material fact necessary in order to make the statements therein, in the light of the circumstances prevailing at that subsequent time, not misleading, (i) CAF has promptly notified or will promptly notify the Representatives, and (ii) if requested by the Representatives, CAF will promptly amend or supplement such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue statement or omission.

(c) The Convenio Constitutivo dated February 7, 1968, as amended (the “Constitutive Agreement”), pursuant to which CAF was established, has been duly executed and ratified by all of the signatory countries thereto and constitutes a legally binding obligation of each Full Member Shareholder Country (collectively, the “Signatory Countries”) under public international law.

(d) CAF has full power and authority under its Constitutive Agreement to execute and deliver this Agreement, any Pricing Agreement, the Fiscal Agency Agreement and the Securities, to incur the obligations to be incurred by it as provided in this Agreement, any Pricing Agreement, the Fiscal Agency Agreement and the Securities, and to perform and observe the provisions of this Agreement, any Pricing Agreement, the Fiscal Agency Agreement and the Securities on its part to be performed or observed.

(e) This Agreement has been duly authorized, executed and delivered by CAF and each Pricing Agreement as of its date will have been duly authorized, executed and delivered by CAF.

(f) The Fiscal Agency Agreement has been duly authorized by CAF and when executed and delivered by CAF at or prior to the Time of Delivery of the Designated Securities will constitute a valid and legally binding obligation of CAF enforceable in accordance with its terms.

(g) The Securities have been duly authorized, and, when Designated Securities are issued and delivered pursuant to this Agreement and the Pricing Agreement with respect to such Designated Securities, such Designated Securities will have been duly executed, authenticated, issued, paid for and delivered against payment therefor in accordance with the Fiscal Agency Agreement, and will constitute valid and legally binding obligations of CAF enforceable in accordance with their terms.

(h) The Designated Securities, when issued and delivered pursuant to this Agreement, the Pricing Agreement relating to the Designated Securities and the Fiscal Agency Agreement, assuming payment therefor, will be direct, unconditional, unsecured and general obligations of CAF that will rank pari passu without any preference among themselves with all other unsecured indebtedness of CAF in respect of monies borrowed by CAF and guarantees given by CAF for monies borrowed by others (“Indebtedness”).

(i) There is no constitutional provision, nor any provision of any treaty, convention, statute, law, regulation, decree, court order or similar authority binding upon CAF, nor any provision of any contract, agreement or instrument to which CAF is a party, which would be contravened or breached in any material respect, or under which a material default would arise or a moratorium in respect of any obligations of CAF be

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effected, as a result of the execution and delivery of this Agreement, any Pricing Agreement or the Fiscal Agency Agreement, the issue of the Securities as contemplated herein and in the General Disclosure Package and the Fiscal Agency Agreement or as a result of the performance or observance by CAF of any of the terms of this Agreement, any Pricing Agreement, the Fiscal Agency Agreement or the Securities.

(j) No consent, approval (including exchange control approval), authorization, order, registration or qualification of or with any court or governmental agency or other regulatory body in any Signatory Country is required for (i) the execution, delivery and performance by CAF of this Agreement, any Pricing Agreement, the Fiscal Agency Agreement or the Securities, (ii) the validity or enforceability against CAF of this Agreement, any Pricing Agreement, the Fiscal Agency Agreement or the Securities, or (iii) the issue, sale or delivery of the Securities.

(k) There is no pending legal action or proceeding affecting CAF which (i) CAF has reasonable cause to believe might individually or in the aggregate have a material adverse effect on the economic, fiscal or financial condition of CAF or (ii) purports to affect the legality, validity or enforceability of this Agreement, any Pricing Agreement, the Fiscal Agency Agreement or the Securities; and, to the best of CAF’s knowledge, no such actions or proceedings are threatened or contemplated by governmental authorities or threatened by others.

(l) With respect to any Designated Securities, prior to the issuance of such Designated Securities, no event will have occurred (and will be continuing) which, had the Securities already been issued, would (with the giving of notice and/or the passage of time) constitute an Event of Default under the Securities (as defined therein).

(m) There is no income, stamp or other tax, levy, impost, deduction or other charge imposed or levied (whether by withholding or otherwise) by any Signatory Country or any other governmental, revenue or taxing authority on or by virtue of the execution or delivery by CAF of this Agreement, any Pricing Agreement, the Fiscal Agency Agreement or the Securities, the enforcement hereof or thereof against CAF, or any payment to be made by CAF, pursuant hereto or thereto.

(n) Under the treaties, conventions, statutes, laws and by-laws governing CAF and laws of each Signatory Country, neither CAF nor any of its property has any immunity from jurisdiction of any court or from set-off or any legal process, except as provided under Chapter VIII of the Constitutive Agreement. Subject to the last sentence of Section 15 hereof, the waiver of immunity by CAF contained in Section 15 hereof and in the Fiscal Agency Agreement and the Securities, and the appointments of the Authorized Agent in Section 15 hereof and in the Fiscal Agency Agreement and the Securities, the consents by CAF to the jurisdiction of the courts specified in Section 15 hereof and in the Fiscal Agency Agreement and the Securities, and the provisions that the law of the State of New York shall govern this Agreement, any Pricing Agreement, the Fiscal Agency Agreement and the Securities as provided in Section 14 hereof and in the Fiscal Agency Agreement and the Securities, are (or will be, when granted) irrevocably binding on CAF, notwithstanding the provisions of Article 54 of the Constitutive Agreement.

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(o) CAF maintains a system of internal control over financial reporting 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 that has been designed by CAF’s principal executive officer and principal financial officer, or under their supervision, to provide reasonable assurance regarding the preparation of reliable financial statements for external purposes in accordance with generally accepted accounting principles. CAF’s internal control over financial reporting is effective and CAF is not aware of any material weaknesses in its internal control over financial reporting.

(p) None of CAF or, to the best of CAF’s knowledge, any director, officer, agent, employee or affiliate of CAF is aware of or has (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds or (iii) taken any action, directly or indirectly, that would result in a violation by such persons of either (x) the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”), including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign political office, in contravention of the FCPA or (y) the U.K. Bribery Act 2010 (the “Bribery Act”), and CAF and, to the best of CAF’s knowledge, its affiliates conduct their businesses in compliance with the FCPA and the Bribery Act and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith.

(q) The operations of CAF are and have been conducted at all times in compliance in all material respects with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving CAF with respect to the Money Laundering Laws is pending or, to the best of CAF’s knowledge, threatened.

(r) None of CAF, to the knowledge of CAF, any director, officer, agent, employee, affiliate or representative of CAF is an individual or entity (“Person”) currently the subject or target of any sanctions administered or enforced by the United States Government, including, without limitation, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”), the United Nations Security Council

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(“UNSC”), the European Union, Her Majesty’s Treasury (“HMT”), or other relevant sanctions authority (collectively, “Sanctions”), nor is CAF located, organized or resident in a country or territory that is the subject of Sanctions; and CAF will not directly or indirectly use the proceeds of the sale of the Designated Securities, or lend, contribute or otherwise make available such proceeds to any subsidiaries, joint venture partners or other Person, to fund any activities of or business with any Person, or in any country or territory, that, at the time of such funding, is the subject of Sanctions or in any other manner that will result in a violation by any Person (including any Person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions.

3. Execution of Pricing Agreements. Upon the execution of the Pricing Agreement applicable to any Designated Securities and authorization by the Representatives of the release of such Designated Securities, the several Underwriters propose to offer such Designated Securities for sale upon the terms and conditions set forth in the Statutory Prospectus.

4. Delivery and Payment. Designated Securities to be purchased by each Underwriter pursuant to the Pricing Agreement relating thereto, in the form specified in such Pricing Agreement, and in such authorized denominations and registered in such names as the Representatives may request with at least forty-eight hours’ prior notice, to CAF, shall be delivered by or on behalf of CAF to the Representatives for the account of such Underwriter, against payment by such Underwriter or on its behalf of the purchase price therefor by wire transfer of Federal (same-day) funds to the account specified by CAF to the Representatives at least forty-eight hours in advance, all in the manner and at the place and time and date specified in such Pricing Agreement or at such other place and time and date as the Representatives and CAF may agree upon in writing, such time and date being herein called the “Time of Delivery” for such Securities.

5. Agreements. CAF agrees with each of the Underwriters of any Designated Securities that:

(a) CAF will prepare the Statutory Prospectus in relation to the applicable Designated Securities in a form approved by the Representatives and file such Statutory Prospectus pursuant to Rule 424(b) under the 1933 Act not later than the Commission’s close of business on the second business day following the execution and delivery of the Pricing Agreement relating to the applicable Designated Securities, or, if applicable, such earlier time as may be required by Rule 424(b) under the 1933 Act and will make no further amendment or any supplement to the Registration Statement or the Statutory Prospectus after the date of the Pricing Agreement relating to such Designated Securities and prior to the Time of Delivery for such Designated Securities which shall be disapproved by the Representatives promptly after reasonable notice thereof and advise the Representatives promptly of any such amendment or supplement after such Time of Delivery and furnish Representatives with copies thereof. During such time as the delivery of a prospectus is (or but for the exemption in Rule 172 of the 1933 Act would be) required in connection with the offering or sale of Designated Securities, CAF will advise the Representatives, promptly after it receives notice thereof, of the time when any amendment or supplement to the Registration Statement has been filed or becomes effective or any amendment or supplement to the Statutory Prospectus has been filed with

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the Commission, of the issuance by the Commission of any stop order or of any order preventing or suspending the use of any prospectus relating to the Securities, of the suspension of the qualification of such Securities for offering or sale in any jurisdiction, of the initiation or threatening of any proceeding for any such purpose, or of any request by the Commission for the amending or supplementing of the Registration Statement or Statutory Prospectus or for additional information; and in the event of the issuance of any such stop order or of any such order preventing or suspending the use of any prospectus relating to the Securities or suspending any such qualification, to promptly use its best efforts to obtain the withdrawal of such order. CAF will update the Registration Statement and the Statutory Prospectus as required under the 1933 Act in connection with any offering of any Designated Securities.

(b) During the period beginning from the date of the Pricing Agreement for such Designated Securities and continuing to and including the later of (i) the termination of trading restrictions for such Designated Securities, as notified to CAF by the Representatives and (ii) the Time of Delivery for such Designated Securities, CAF will not offer, sell, contract to sell or otherwise dispose of any debt securities similar to the Designated Securities issued or guaranteed by CAF to be placed in the international or U.S. capital markets that are denominated in U.S. dollars, which mature more than one year after such Time of Delivery, without the prior written consent of the Representatives.

(c) Within the period during which a prospectus relating to the Securities is (or but for the exemption in Rule 172 of the 1933 Act would be) required to be delivered under the 1933 Act, CAF will comply with all requirements imposed upon CAF by the 1933 Act, as now and hereafter amended, and by the rules and regulations thereunder, as from time to time in force, so far as necessary to permit the continuance of sales of or dealings in the Securities as contemplated by the provisions hereof and by the Statutory Prospectus. If at any time during such period, any event occurs as a result of which the Statutory Prospectus as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, or if it shall be necessary to amend or supplement the Statutory Prospectus to comply with the 1933 Act or rules and regulations thereunder, CAF will promptly prepare and file with the Commission, subject to the first sentence of paragraph (a) of this Section 5, an amendment or supplement which will correct such statement or omission or an amendment which will effect such compliance.

(d) As soon as practicable, but not later than 16 months, after the date of a Pricing Agreement, CAF will make generally available to its securityholders an earning statement covering a period of at least 12 months beginning after the date of such Pricing Agreement and satisfying the provisions of Section 11(a) of the 1933 Act.

(e) CAF will furnish to counsel for the Underwriters, on behalf of the Representatives, without charge, a reasonable number of copies of the Registration Statement (including one signed copy with all exhibits thereto) and each amendment thereto which shall become effective on or prior to the Time of Delivery of the

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Designated Securities, together with any Statutory Prospectus relating to such Designated Securities filed pursuant to Rule 424 under the 1933 Act; and, so long as the delivery of a prospectus by an underwriter or dealer may be (or but for the exemption in Rule 172 of the 1933 Act would be) required by the 1933 Act, as many copies of any Statutory Prospectus and any amendments thereof and supplements thereto as the Representatives may reasonably request.

(f) CAF will furnish such information, execute such instruments and take such actions as may be required to qualify the Designated Securities for offering and sale under the applicable securities or Blue Sky laws of such jurisdictions of the United States and outside of the United States as the Representatives may designate and will maintain such qualifications in effect so long as required for the distribution of the Designated Securities including without limitation, obtaining the approval of the application for listing referred to in Section 6(a)(ix) hereof; provided, however, that CAF shall not be required to file a consent to service of process in any such jurisdiction.

(g) So long as the Securities are outstanding CAF will furnish to the Representatives, upon request, copies of all reports and financial statements filed with the Commission or any national securities exchange in the United States.

(h) CAF has complied and will comply with the provisions of Rule 433 of the 1933 Act that apply to CAF.

6. Expenses.

(a) Except as provided in Section 6(b) hereof, whether or not the transactions contemplated hereunder are consummated or this Agreement is terminated, CAF will pay all costs and expenses incident to the performance of the obligations of CAF hereunder, including, without limiting the generality of the foregoing, (i) the fees, disbursements and expenses of CAF’s counsel and accountants, (ii) all costs and expenses incident to the preparing, printing, filing and distributing of this Agreement, any Pricing Agreement, the Registration Statement (including all exhibits thereto), any Statutory Prospectus, the Final Prospectus, any amendments or supplements thereto and each Issuer Free Writing Prospectus, (iii) all costs and expenses of printing and distributing the Fiscal Agency Agreement, and the fees and expenses of the Fiscal Agent and any paying agents under the Fiscal Agency Agreement, (iv) all costs and expenses in connection with the engraving, printing, issuance and delivery to the Underwriters of the Securities, (v) all costs and expenses in respect of the determination of the eligibility of the Securities for investment arid the qualification of the Securities in accordance with the provisions of Section 5(f) hereof, including filing fees and fees and disbursements of counsel for the Underwriters in connection therewith and in connection with the preparation and printing of any Blue Sky Memorandum and Legal Investment Survey in respect of the Securities, (vi) the printing and delivery (including costs of mailing and shipping) to the Underwriters, in quantities as hereinabove stated, of copies of the documents referred to in Section 5(e) hereof, (vii) any fees charged by securities rating services for rating the Securities, (viii) all expenses incurred by CAF in the marketing of the Securities, including expenses incurred in connection with any presentations to potential investors

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made jointly by the Underwriters and CAF and (ix) the listing and filing fees and similar expenses incurred in listing the Designated Securities on any stock exchange including the fees paid to qualify the Designated Securities with the UK Listing Authority and for listing on the London Stock Exchange and (x) all other costs and expenses incident to the performance of CAF’s obligations hereunder which are not otherwise specifically provided for in this Section. Except as provided in this Section 6, the Underwriters will pay all of their own costs and expenses, including fees and disbursements of their counsel.

(b) If the sale of Designated Securities provided for herein is not consummated because any condition to the obligations of the Underwriters set forth in Section 7 hereof is not satisfied or because of any refusal, inability or failure on the part of CAF to perform any agreement herein or comply with any provision hereof other than by reason of a default by any of the Underwriters, or if the Pricing Agreement relating to the Designated Securities is terminated pursuant to the provisions of Section 10(i), CAF will reimburse the Underwriters severally upon demand for all out-of-pocket expenses (including reasonable fees and disbursements of United States counsel and counsel for each Signatory Country) up to an aggregate amount of $100,000 that shall have been incurred by them in making preparations for the purchase, sale and delivery of the Designated Securities.

7. Conditions to the Obligations of the Underwriters. The obligations of the Underwriters of any Designated Securities under the Pricing Agreement relating to such Designated Securities shall be subject, in the discretion of the Representatives, to the condition that all of the representations and warranties and other statements of CAF in or incorporated by reference in the Pricing Agreement relating to such Designated Securities are, at and as of the Time of Delivery for such Designated Securities, true and correct, the condition that CAF shall have performed all of its obligations hereunder theretofore to be performed and to the following additional conditions.

(a) No stop order suspending the effectiveness of the Registration Statement or any part thereof, as amended from time to time, shall have been issued and no proceedings for that purpose shall have been initiated or threatened by the Commission; any request of the Commission for additional information shall have been complied with to the reasonable satisfaction of the Representatives; and the Statutory Prospectus in relation to the applicable Designated Securities shall have been filed with the Commission pursuant to Rule 424(b) under the 1933 Act within the applicable time period prescribed for such filing by the rules and regulations under the 1933 Act and in accordance with Section 5(a) of this Agreement.

(b) The General Counsel of CAF shall have furnished to the Representatives his written opinion, dated the Time of Delivery for such Designated Securities, in form and substance satisfactory to the Representatives, to the effect that:

(i) The Constitutive Agreement has been duly executed and ratified by all of the Signatory Countries, all amendments thereto have been duly adopted and are in full force and effect, and the Constitutive Agreement constitutes a legally binding obligation of each Signatory Country under public international law;

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(ii) CAF has full power and authority under its Constitutive Agreement to execute and deliver this Agreement, the Pricing Agreement with respect to the Designated Securities, the Fiscal Agency Agreement and the Designated Securities, to incur the obligations to be incurred by it as provided herein and therein, and to perform and observe the provisions hereof and thereof on its part to be performed or observed;

(iii) The execution, delivery and performance by CAF of this Agreement, the Pricing Agreement with respect to the Designated Securities, the Fiscal Agency Agreement and the Designated Securities are in compliance with CAF’s Constitutive Agreement and have been duly authorized by all necessary action on its part and no constitutional, legislative, executive, administrative or other governmental action on the part of any Signatory Country is necessary in order to duly authorize the execution, delivery and performance by CAF of this Agreement, the Pricing Agreement with respect to the Designated Securities, the Fiscal Agency Agreement and the Designated Securities;

(iv) Each of this Agreement, the Pricing Agreement with respect to the Designated Securities and the Fiscal Agency Agreement has been duly authorized, executed and delivered by CAF, and each of this Agreement, the Pricing Agreement with respect to the Designated Securities and the Fiscal Agency Agreement constitutes a valid and legally binding obligation of CAF enforceable in accordance with its terms;

(v) The Designated Securities have been duly authorized, executed, issued and delivered by CAF in accordance with the Fiscal Agency Agreement and, assuming due authentication and delivery by the Fiscal Agent, constitute valid and legally binding obligations of CAF enforceable in accordance with their terms; when issued and delivered pursuant to this Agreement, the Pricing Agreement with respect to the Designated Securities and the Fiscal Agency Agreement, assuming payment therefor, the Designated Securities will be direct, unconditional, unsecured and general obligations of CAF that will rank pari passu without any preference among themselves with all other Indebtedness of CAF; and the Designated Securities and the Fiscal Agency Agreement conform to the descriptions thereof in the General Disclosure Package;

(vi) The obligations of CAF’s shareholders (including, without limitation, the holders of the Series C shares) to pay the subscription price of the capital which has been subscribed by the shareholders, to the extent described in the General Disclosure Package, are unconditional and absolute obligations of each such shareholder, requiring no further consents or approvals on the part of any such shareholder, and are enforceable against each such shareholder in accordance with the terms of the subscription agreements pursuant to which such capital was issued, and in accordance with the Constitutive Agreement;

(vii) There is not any provision of any contract, agreement or instrument to which CAF is a party, nor to the best of such counsel’s knowledge, any

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constitutional provision, or any provision of any treaty, convention, statute, law, regulation, decree, court order or similar authority binding upon CAF, which would be contravened or breached in any respect, or under which a default would arise or a moratorium in respect of any obligations of CAF be effected which breach, default or moratorium would be material with respect to CAF as a whole, as a result of the execution and delivery of this Agreement, the Pricing Agreement with respect to the Designated Securities or the Fiscal Agency Agreement, the issue and sale of the Designated Securities as contemplated herein, in the Pricing Agreement with respect to the Designated Securities and in the General Disclosure Package, or the performance or observance by CAF of any of the terms of this Agreement, the Pricing Agreement with respect to the Designated Securities, the Fiscal Agency Agreement or the Designated Securities;

(viii) Under the Constitutive Agreement, no consent, approval (including exchange control approval), authorization, order, registration or qualification of or with any court or governmental agency or other regulatory body of any Signatory Country is required for (A) the due execution, delivery and performance by CAF of any of this Agreement, the Pricing Agreement with respect to the Designated Securities, the Fiscal Agency Agreement or the Designated Securities, (B) the validity or enforceability against CAF of any of this Agreement, the Pricing Agreement with respect to the Designated Securities, the Fiscal Agency Agreement or the Designated Securities, or (C) the issue, sale or delivery of the Designated Securities;

(ix) To the best of such counsel’s knowledge, there is no pending or threatened legal action or proceeding affecting CAF which (A) such counsel has reasonable cause to believe might individually or in the aggregate have a material adverse effect on the economic, fiscal or financial condition of CAF or (B) purports to affect the legality, validity or enforceability of this Agreement, the Pricing Agreement with respect to the Designated Securities or the Fiscal Agency Agreement;

(x) No event has occurred (and is continuing) which, had the Designated Securities already been issued, would (with the giving of notice and/or the passage of time) constitute an Event of Default under the Securities;

(xi) There is no income, stamp or other tax, levy, impost, deduction or other charge imposed or levied (whether by withholding or otherwise) by any Signatory Country or any governmental agency thereof or other governmental, revenue or taxing authority or agency of any Signatory Country on or by virtue of the execution or delivery by CAF of this Agreement, the Pricing Agreement with respect to the Designated Securities, the Fiscal Agency Agreement or the Designated Securities, the enforcement hereof or thereof against CAF, or any payment to be made by CAF, pursuant hereto or thereto;

(xii) Under the Constitutive Agreement and the laws of each Signatory Country, neither CAF nor any of its property has any immunity from jurisdiction of any court or from set-off or any legal process, except as provided under Chapter VIII of the Constitutive Agreement. Subject to the last sentence of Section 15 hereof, the waiver of

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immunity by CAF contained in Section 15 hereof and in the Fiscal Agency Agreement and the Designated Securities and the appointments of the Authorized Agent in Section 15 hereof and the Fiscal Agency Agreement and the Designated Securities, the consents by CAF to the jurisdiction of the courts specified in Section 15 hereof and in the Fiscal Agency Agreement and the Designated Securities, and the provisions that the law of the State of New York shall govern this Agreement, the Pricing Agreement with respect to the Securities, the Fiscal Agency Agreement and the Designated Securities as provided in Section 14 hereof and in the Fiscal Agency Agreement and the Designated Securities, are irrevocably binding on CAF, and service of process effected in the manner set forth in Section 15 hereof and in the Fiscal Agency Agreement and the Designated Securities will be effective, insofar as public international law and the Constitutive Agreement is concerned, to confer valid personal jurisdiction over CAF notwithstanding the provisions of Article 54 of the Constitutive Agreement;

(xiii) The Registration Statement and the Statutory Prospectus, and their filing with the Commission have been duly authorized by and on behalf of CAF, and the Registration Statement has been duly executed by and on behalf of CAF, and the information in the Registration Statement, as amended, and the Statutory Prospectus, stated on the authority of executive officials of CAF has been stated in their official capacities thereunto duly authorized;

(xiv) The statements in the General Disclosure Package and the Final Prospectus, under the captions “Legal Status of CAF”, “Capital Structure” and “Description of the Debt Securities” insofar as matters of public international law are concerned, are correct in all material respects; and

(xv) In addition, such counsel shall have furnished the Underwriters with a letter, dated the Time of Delivery for such Designated Securities, in form and substance satisfactory to the Representatives, to the effect that:

(A) No information has come to such counsel’s attention that causes such counsel to believe that any part of the Registration Statement (except the financial statements and other financial or statistical data included therein as to which such counsel need express no view) as of its effective date or as of the Time of Delivery, or any amendment thereto as of its effective date or as of the Time of Delivery, contained an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading;

(B) No information has come to such counsel’s attention that causes such counsel to believe that the Final Prospectus (except the financial statements and other financial or statistical data included therein as to which such counsel need express no view) as of the date of the Pricing Agreement or as of the Time of Delivery, or any amendment or supplement thereto, as of its issue date or as of the Time of Delivery, contained an untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and

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(C) No information has come to such counsel’s attention that causes such counsel to believe that the General Disclosure Package (except the financial statements and other financial or statistical data included therein as to which such counsel need express no view), as of the Applicable Time, contained an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

Such counsel may state that he is not passing upon and does not assume any responsibility for the accuracy, completeness or fairness of the statements contained in the Registration Statement, the General Disclosure Package or the Final Prospectus, except for statements in the sections “Legal Status of CAF” and except as set forth in item 7(b)(xiv) of such counsel’s opinion set forth above, and that such counsel makes no representation that such counsel has independently verified the accuracy, completeness and fairness of such statements. Such counsel may further state that such counsel’s opinion is limited to matters of public international law and the Constitutive Agreement.

(c) Sullivan & Cromwell, United States counsel to CAF or other United States counsel satisfactory to the Representatives, shall have furnished to the Representatives their written opinion, dated the Time of Delivery for such Designated Securities, in form and substance satisfactory to the Representatives; to the effect that:

(i) This Agreement and the Pricing Agreement with respect to the Designated Securities have been duly executed and delivered by CAF insofar as the Federal laws of the United States and the laws of the State of New York are concerned;

(ii) The Registration Statement has become effective under the 1933 Act and, to the best of such counsel’s knowledge, no stop order suspending the effectiveness of the Registration Statement has been issued, and no proceedings for that purpose are pending before or are threatened by the Commission;

(iii) The Fiscal Agency Agreement has been duly executed and delivered by CAF and constitutes a valid and binding obligation of CAF enforceable in accordance with its terms insofar as the Federal laws of the United States and the laws of the State of New York are concerned, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles;

(iv) The Designated Securities have been duly executed by CAF and, when authenticated and delivered against payment thereof in accordance with the Fiscal Agency Agreement, this Agreement and the Pricing Agreement, will have been duly issued and delivered and will constitute valid and binding obligations of CAF enforceable in accordance with their terms insofar as the Federal laws of the United States and the laws of the State of New York are concerned, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles; and the Designated Securities and the Fiscal Agency Agreement conform in all material respects to the descriptions thereof in each of the General Disclosure Package and the Final Prospectus;

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In rendering the opinions referred to in subsections (c)(i), (iii) and (iv) of Section 7, such counsel may state that, other than to the extent stated in subsections (c)(i), (iii) and (iv), such counsel has assumed that this Agreement, the Pricing Agreement, the Fiscal Agency Agreement and the Designated Securities have been duly authorized, executed and delivered by CAF;

(v) All regulatory consents, authorizations, approvals and filings required to be obtained or made by CAF under the Federal laws of the United States and the laws of the State of New York for the issuance, sale and delivery of the Designated Securities by CAF to the Underwriters or the consummation by CAF of the transactions contemplated by this Agreement, the Pricing Agreement relating to the Designated Securities or the Fiscal Agency Agreement have been obtained or made, except that such counsel may express no opinion as to any consents, authorizations, approvals and filings required to be made under any blue sky or other securities laws of the State of New York;

(vi) Assuming due authorization, execution and delivery of this Agreement by the Underwriters and subject to the last sentence of Section 15 of this Agreement, under the laws of the State of New York relating to personal jurisdiction, CAF has, pursuant to Section 15 of this Agreement, validly and irrevocably submitted to the jurisdiction of any New York State or United States federal court located in the Borough of Manhattan, The City of New York, in any action, suit or proceeding brought by any Underwriter or any person who controls an Underwriter arising out of or relating to this Agreement or any Pricing Agreement, has validly and irrevocably waived by objection to the venue of any such action, suit or proceeding in any such court, has validly and irrevocably waived and agreed not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum, and has validly and irrevocably appointed CT Corporation System in The City of New York as its authorized agent for the purpose described in Section 15 hereof; and service of process effected on such agent in the manner set forth in Section 15 hereof will be effective to confer valid personal jurisdiction over CAF;

(vii) The discussion of certain U.S. Federal income tax considerations set forth in the Final Prospectus under the caption “Taxation – United States Taxation”, is accurate in all material respects, subject to the limitations set forth therein;

(viii) CAF is not an “investment company” or an entity “controlled” by an “investment company” as those terms are defined in the Investment Company Act of 1940, as amended; and

(ix) In addition, such counsel shall have furnished the Underwriters with a letter, dated the Time of Delivery for such Designated Securities, in form and substance satisfactory to the Representatives, to the effect that, on the basis of the review described in the letter: (A) the statements contained under the captions “Description of the Debt Securities” and “Taxation – United States Taxation” in the Statutory Prospectus

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and “Description of the Notes” in the Final Prospectus, insofar as such statements describe provisions of United States Federal tax law or of the Designated Securities or the Fiscal Agency Agreement, constitute a fair and accurate summary of such provisions in all material respects, (B) the Registration Statement or any further amendment thereto made by CAF prior to the Time of Delivery for the Designated Securities, as of the effective date of the Registration Statement, and the Final Prospectus, as of its date (and, if applicable, any amendment or supplement thereto, as of its date), appeared on their face to be appropriately responsive, in all material respects relevant to the offering of the Designated Securities, to the requirements of the 1933 Act and the applicable rules and regulations of the Commission thereunder, (C) nothing that came to such counsel’s attention in the course of such review has caused such counsel to believe that, insofar as relevant to the offering of the Designated Securities, (x) the Registration Statement or any further amendment thereto made by CAF prior to the Time of Delivery for the Designated Securities, as of the effective date of the Registration Statement, contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary to make the statements therein not misleading, or (y) the General Disclosure Package, as of the Applicable Time, contained any untrue statement of a material fact or omitted to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, or (z) the Final Prospectus, as of its date (and, if applicable, any amendment or supplement thereto, as of its date), contained any untrue statement of a material fact or omitted to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, and (D) nothing that came to such counsel’s attention in the course of such review has caused such counsel to believe that the Final Prospectus, as of the time of delivery of the letter, contained any untrue statement of a material fact or omitted to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. Such counsel may state that such counsel does not assume any responsibility for the accuracy, completeness or fairness of the statements contained in the Registration Statement, any post-effective amendment thereto, the Final Prospectus or the General Disclosure Package, except to the extent specifically noted in (A) above. Also, such counsel may state that such counsel does not express any opinion or belief as to the financial statements or other financial data derived from accounting records or the statistical data relating to the shareholder countries contained in the Registration Statement, any post-effective amendment thereto, the Statutory Prospectus, the Final Prospectus or the General Disclosure Package, as to management’s report of its assessment of the effectiveness of CAF’s internal control over financial reporting or the auditors’ report on management’s assertion as to CAF’s internal control over financial reporting, each as included in the Registration Statement, any post-effective amendment thereto, the Statutory Prospectus, the Final Prospectus or the General Disclosure Package, or as to statements made in the Statutory Prospectus, the Final Prospectus or the General Disclosure Package relating to (i) the interpretation of the provisions of the Constitutive Agreement or (ii) matters of law other than the Federal laws of the United States or the laws of the State of New York.

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In rendering the opinion and the letter referred to in this Section 7(c), such counsel may state that such opinion is limited to the Federal laws of the United States and the laws of the State of New York

(d) The Representatives shall have received the opinion or opinions of Wilmer, Cutler & Pickering, United States counsel for the Underwriters, or other United States counsel satisfactory to the Representatives, with respect to the validity of the Designated Securities, the Registration Statement, the Final Prospectus and the General Disclosure Package, this Agreement, the Pricing Agreement with respect to the Designated Securities, the Fiscal Agency Agreement and other related matters as the Representatives may reasonably require. In rendering such opinion or opinions, such counsel may rely as to all matters of public international law upon the opinion of the General Counsel of CAF referred to above, and as to all matters of the laws of any Signatory Country upon the opinions of attorneys licensed to practice in such jurisdictions.

(e) The Representatives shall have received the opinion of Venezuelan counsel to the Underwriters, with respect to the validity of the Designated Securities, the Registration Statement, the Final Prospectus and the General Disclosure Package, this Agreement, the Pricing Agreement, with respect to the Designated Securities, the Fiscal Agency Agreement and other related matters as the Representatives may reasonably require. In rendering such opinion or opinions, such counsel may rely as to all matters of United States law upon the opinion of the U.S. counsel to the Underwriters referred to above, and as to all matters of the laws of any Signatory Country upon the opinions of attorneys licensed to practice in such jurisdictions.

(f) The Representatives shall have received the opinions of Argentine counsel to the Underwriters, Bolivian counsel to the Underwriters, Brazilian counsel to the Underwriters, Colombian counsel to the Underwriters, Ecuadorian counsel to the Underwriters, Panamanian counsel to the Underwriters, Paraguayan counsel to the Underwriters, Peruvian counsel to the Underwriters, Venezuelan counsel to the Underwriters and Uruguayan counsel to the Underwriters with respect to the valid and binding nature of the Constitutive Agreement as an international treaty obligation of each of the respective Signatory Countries and with respect to such other matters as the Representatives may reasonably require.

(g) On the date of the Pricing Agreement for such Designated Securities and at the Time of Delivery for such Designated Securities, the independent accountants of CAF who have certified the financial statements of CAF included in the Registration Statement shall have furnished to the Representatives a letter, dated the date of the Pricing Agreement with respect to the Designated Securities, and a letter, dated the Time of Delivery of the Designated Securities, respectively, as to such matters as the Representatives may reasonably request and in form and substance satisfactory to the Representatives. The letter delivered on the date of the execution of the Pricing Agreement with respect to the Designated Securities shall include the matters set forth in Annex II hereto and the letter delivered at the Time of Delivery of the Designated Securities shall update the letter dated the date of the Pricing Agreement with respect to the Designated Securities as of the Time of Delivery of the Designated Securities.

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(h) Subsequent to the execution and delivery of this Agreement and on or prior to the Time of Delivery of the Designated Securities (i) there shall not have occurred any material adverse change, or any development involving a prospective material adverse change, in or affecting CAF which, in the sole judgment of the Representatives materially impairs the investment quality of the Designated Securities; (ii) no proceeding shall be pending or threatened to restrain or enjoin the issuance, sale or delivery of the Designated Securities or in any manner to question the laws, proceedings, directives, resolutions, approvals, consents or orders under which the Designated Securities are to be issued or to question the validity of the Designated Securities, and none of said laws, proceedings, directives, resolutions, approvals, consents or orders shall have been repealed, revoked or rescinded in whole or in relevant part; (iii) the Designated Securities will be rated at least AA- by Standard & Poors and Aa3 by Moody’s Investors Service and there shall not have been any public announcement by Standard & Poors or Moody’s Investors Service that either such organization has under surveillance or review its rating of any debt securities of CAF (other than the announcement with positive implications of a possible upgrading, and no implication of a possible downgrading, of such rating); and (iv) there shall not have occurred any outbreak or escalation of major hostilities in which the United States or any Signatory Country is involved, any declaration of war by the United States or any Signatory Country or any other substantial national or international calamity or emergency if, in the sole judgment of the Representatives, the effect of any such outbreak, escalation, declaration, calamity or emergency makes it impractical or inadvisable to proceed with the completion of the sale of and payment for the Designated Securities.

(i) On or prior to the Time of Delivery of the first issuance of Designated Securities, CT Corporation System, as authorized agent of CAF in the City of New York for purposes of service of process, shall have accepted its appointment as authorized agent of CAF upon which process may be served in any action by any Underwriter or any person controlling any Underwriter, and arising out of or based upon this Agreement or any Pricing Agreement, which may be instituted in any State or federal court in the Borough of Manhattan, The City of New York.

(j) The Chief Financial Officer of CAF shall have delivered to the Representatives a certificate to the effect that, as of the Time of Delivery of the Designated Securities, the representations and warranties made in this Agreement and in the Pricing Agreement with respect to the Designated Securities remain true.

(k) On or prior to the Time of Delivery of the Designated Securities, counsel for the Underwriters shall have been furnished with such documents and information as they may require for the purpose of enabling them to pass upon the matters described in paragraphs (d) and (e) above, and the Representatives shall have received such documents, opinions and information as the Representatives may require in order to evidence the accuracy and completeness of any of the representations and warranties, or the fulfillment of any of the conditions, herein contained; and all proceedings taken by

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CAF in connection with the issuance and sale of the Designated Securities as herein contemplated shall be reasonably satisfactory in form and substance to the Representatives.

If any of the conditions specified in this Section 7 shall not have been fulfilled in all material respects when and as provided in this Agreement, or if any of the opinions, certificates documents and information mentioned above or elsewhere in this Agreement or in the Pricing Agreement relating to the Designated Securities shall not be in all material respects reasonably satisfactory in form and substance to the Representatives and their counsel at the Time of Delivery, the Pricing Agreement relating to the Designated Securities and all obligations of the Underwriters thereunder may be canceled at the Time of Delivery of the Designated Securities by the Representatives by notice to CAF in writing or by telephone, confirmed in writing by facsimile.

8. Indemnification and Contribution.

(a) CAF agrees to indemnify and hold harmless each Underwriter and each person who controls any Underwriter within the meaning of the 1933 Act as follows:

(i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, arising out of an untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statement therein not misleading, or arising out of an untrue statement or alleged untrue statement of a material fact contained in any Statutory Prospectus, the Final Prospectus or any Issuer Free Writing Prospectus or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;

(ii) against any and all loss, liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or investigation or proceeding by any governmental agency or body, commenced or threatened, for any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, if such settlement is effected with the written consent of CAF; and

(iii) against any and all expense whatsoever, as incurred (including fees and disbursements of counsel chosen by the Representatives), reasonably incurred in investigating, preparing or defending against any litigation, or investigation or proceeding by any governmental agency or body; commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under subparagraph (i) or (ii) above;

provided, however, that CAF will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission

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made therein in reliance upon and in conformity with information furnished to CAF in writing by or on behalf of any Underwriter through the Representatives specifically for use in connection with the preparation of any Statutory Prospectus, the Final Prospectus or any Issuer Free Writing Prospectus and as memorialized in the blood letter from the Representatives to CAF in the form attached to the Pricing Supplement as Schedule V.

(b) Each Underwriter severally agrees to indemnify and hold harmless CAF and each of its officials, including its authorized representative in the United States, who signs the Registration Statement, against any and all loss, liability, claim, damage and expense as incurred, but only with reference to information relating to such Underwriter furnished to CAF in writing by or on behalf of such Underwriter through the Representatives specifically for use in the preparation of the documents referred to in the foregoing indemnity. This indemnity agreement will be in addition to any liability which any Underwriter may otherwise have.

(c) Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party otherwise than under Section 8(a) or (b), as the case may be. In case any such action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof, with counsel satisfactory to such indemnified party; provided, however, that if the defendants in any such action include both the indemnified party and the indemnifying party, and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assume such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of its election so to assume the defense of such action and approval by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under this Section 8 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof unless (i) the indemnified party shall have employed separate counsel in connection with the assertion of legal defenses in accordance with the proviso to the next preceding sentence (it being understood, however, that the indemnifying party shall not be liable for the expenses of more than one separate counsel, approved by the Representatives in the case of paragraph (a) of this Section 8, representing the indemnified parties under such paragraph who are parties to such action), (ii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of commencement of the action or (iii) the indemnifying party has authorized the employment of counsel for the indemnified party at the expense

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of the indemnifying party; and except that, if clause (i) or (iii) is applicable, such liability shall be only in respect of the counsel referred to in such clauses (i) and (iii). No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action in respect of which any indemnified party is or could have been a party and an indemnity could have been sought hereunder by such indemnified party unless such settlement includes an unconditional release of such indemnified party from all liability on any claims that are the subject matter of such action. The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, which shall not be unreasonably withheld.

(d) In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in paragraphs (a) or (b) of this Section 8 is due in accordance with its terms but is for any reason held by a court to be unavailable, on grounds of policy or other similar grounds, CAF and the Underwriters shall contribute to the aggregate losses, claims, damages and liabilities (including any legal or other expenses reasonably incurred in connection with investigating or defending same) to which CAF and one or more of the Underwriters may be subject in such proportion so that the Underwriters are responsible for that portion represented by the percentage that the total of the underwriting discounts appearing on the front cover page of the Prospectus bears to the total public offering price of the Designated Securities appearing thereon and CAF is responsible for the balance. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law or if indemnification is unavailable because the indemnified party failed to give the notice required in Section 8(c), then each indemnifying party will contribute to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only the relative benefits but also the relative fault of CAF on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such loss, claims, damages or liabilities (or actions in respect thereof) as well as other relevant equitable considerations. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by CAF or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. Notwithstanding the foregoing, (y) in no case shall any Underwriter be responsible for any amount in excess of the total of the underwriting discounts applicable to the Designated Securities purchased by such Underwriter hereunder and (z) no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 8, each person who controls an Underwriter within the meaning of the 1933 Act shall have the same rights to contribution as such Underwriter, subject to clauses (y) and (z) of this paragraph (d).

9. Default by One or More of the Underwriters. If one or more of the Underwriters shall default in its obligation to purchase the Designated Securities that it or they are obligated to purchase under the Pricing Agreement relating to such Designated Securities (the “Defaulted Securities”), the Representatives shall have the right, within 48 hours thereafter, to make

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arrangements for one or more of the non-defaulting Underwriters, or any other underwriters, to purchase all, but not less than all, of the Defaulted Securities in such amounts as may be agreed upon and upon the terms set forth in this Agreement and the Pricing Agreement relating to the Defaulted Securities; if, however, the Representatives have not completed such arrangements within such 48-hour period, then:

(a) if the principal amount of Defaulted Securities does not exceed 10% of aggregate principal amount of the Designated Securities set forth in Schedule I to the Pricing Agreement relating to the Designated Securities, the non-defaulting Underwriters shall be obligated to purchase the full amount thereof in the proportions that their respective Security underwriting obligations bear to the underwriting obligations of all non defaulting Underwriters; or

(b) if the principal amount of Defaulted Securities exceeds 10% of aggregate principal amount of Designated Securities set forth in Schedule I to the Pricing Agreement relating to the Designated Securities, the remaining Underwriters shall have the right to purchase all, but shall not be under any obligation to purchase any, of the Designated Securities, and if such non-defaulting Underwriters do not purchase all the Designated Securities, the Pricing Agreement relating to the Designated Securities shall terminate without liability on the part of any non-defaulting Underwriters.

No action taken pursuant to this Section shall relieve any defaulting Underwriter from liability in respect of its default.

In the event of any such default that does not result in termination of the Pricing Agreement relating to the Defaulted Securities, either the Representatives or CAF shall have the right to postpone the Time of Delivery of the Designated Securities for a period not exceeding seven days in order to effect any required changes in the Registration Statement or Prospectus as amended or supplemented, or in any other document or arrangements, and CAF agrees to file promptly any amendments or supplements to the Registration Statement or the Prospectus which in the opinion of the Representatives may thereby be made necessary. As used herein, the term “Underwriter” as used in this Agreement or any Pricing Agreement includes any person substituted for an Underwriter under this Section 9.

10. Termination. Any Pricing Agreement shall be subject to termination in the absolute discretion of the Representatives, by notice given to CAF prior to delivery of and payment for all the Designated Securities relating to the respective Pricing Agreement subject to termination, if after the execution and delivery of the respective Pricing Agreement and prior to such time (i) there has been, since the respective dates as of which information is given in the Registration Statement, except as otherwise set forth or contemplated therein, any material adverse change in the condition (financial or otherwise), earnings, business affairs or business prospects of CAF, whether or not arising in the ordinary course of business, or (ii) if there has occurred any material adverse change in the financial markets or any attack on or outbreak or escalation of hostilities or act of terrorism involving the United States or any Signatory Country or any declaration of war by Congress or any other national or international calamity or crisis the effect of which is such as to make it, in the judgment of the Underwriters, impracticable to market the Designated Securities or enforce contracts for the sale of the Designated Securities; or

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if there has occurred any change in national or international financial, economic or political conditions or currency exchange rates or exchange controls in Europe, the United States or elsewhere, which makes it impracticable or inadvisable in the reasonable judgment of the Underwriters to proceed with the public offering or delivery of the Designated Securities on the terms and in the manner contemplated in the General Disclosure Package or the Final Prospectus, or (iii) if trading in any securities of CAF has been suspended by the Commission or on any exchange where CAF’s securities are traded, or if trading generally on the New York Stock Exchange (the “NYSE”) has been suspended, or minimum or maximum prices for trading have been fixed, or maximum ranges for prices for securities have been required, by the NYSE, or by order of the Commission or any other governmental authority, or (iv) if a banking moratorium has been declared by either federal or New York or any Signatory Country authorities.

11. Representations and Indemnities to Survive. The respective agreements, representations, warranties, indemnities and other statements of CAF and of the Underwriters set forth in or made pursuant to this Agreement or any Pricing Agreement will remain in full force and effect regardless of any investigation made by or on behalf of any Underwriter or CAF or any of the controlling persons referred to in Section 8 hereof, and will survive delivery of and payment for the Securities. The provisions of Sections 6 and 8 hereof shall survive the termination or cancellation of this Agreement.

12. Notices. Except as otherwise expressly provided in this Agreement, all communications hereunder will be in writing and effective only on receipt, and, if sent to the Representatives, will be mailed, delivered or sent by facsimile, at the address specified in Schedule II to the respective Pricing Agreement; or, if sent to CAF, will be mailed, delivered or sent by facsimile to the Vice President of Finance, Corporación Andina de Fomento, Avenida Luis Roche, Torre CAF, Altamira, Caracas, Venezuela.

13. Successors. This Agreement and each Pricing Agreement will inure to the benefit of and be binding upon the parties hereto and thereto and their respective successors and the controlling persons referred to in Section 8 hereof, and no other person will have any right or obligation hereunder. No purchaser of any Security from any Underwriter shall be deemed to be a successor or assign merely by reason of such purchase. This Agreement and each Pricing Agreement may not be assigned by any party hereto without the prior written consent of each of the other parties hereto and thereto. Any purported assignment of this Agreement or any Pricing Agreement in contravention of this Section 13 shall be null and void.

14. Applicable Law. This Agreement and each Pricing Agreement will be governed by and construed in accordance with the laws of the State of New York.

15. Jurisdiction of Courts of New York and each Signatory Country. CAF hereby appoints CT Corporation System in The City of New York, presently located at 111 Eighth Avenue, 13th Floor, New York, NY 10011, as its authorized agent (the “Authorized Agent”) upon which process may be served in any action by any Underwriter, or by any persons controlling such Underwriter, arising out of or based upon this Agreement or any Pricing Agreement, which may be instituted in any state or Federal court in the Borough of Manhattan, The City of New York, New York, and, subject to the last sentence of this Section 15, CAF

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expressly accepts the jurisdiction of any such court in respect of such action. Such appointment shall be irrevocable as long as any of the Securities remain outstanding unless and until the appointment of a successor Authorized Agent and such successor’s acceptance of such appointment shall have occurred. CAF will take any and all action, including the filing of any and all documents and instruments, that may be necessary to continue such appointment or appointments in full force and effect as aforesaid. Service of process upon the Authorized Agent and written notice of such service mailed or delivered to Corporación Andina de Fomento, Avenida Luis Roche, Torre CAF, Altamira, Caracas, Venezuela, Attention: General Counsel, shall be deemed in every respect effective service of process upon CAF. Notwithstanding the foregoing, any action by an Underwriter based upon this Agreement or any Pricing Agreement may be instituted by any Underwriter in any competent court in any Signatory Country. CAF hereby waives irrevocably, to the fullest extent permitted by law, any immunity from jurisdiction (except for immunity from execution on a judgment) to which it might otherwise be entitled in any action arising out of or based on this Agreement or any Pricing Agreement which may be instituted as provided in this Section 15 in any state or Federal court in The City of New York, New York, or in any competent court in any Signatory Country; provided, to the extent set forth in Article 47 of the Constitutive Agreement, that the revenues, assets and property of CAF located in any Signatory Country are not subject to execution or attachment in any proceeding brought in any court in any Signatory Country. CAF hereby irrevocably and unconditionally waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the venue of any aforesaid action arising out of or in connection with this Agreement or any Pricing Agreement brought in any such court and hereby further, to the fullest extent permitted by law, irrevocably waives and agrees not to plead or claim in any such court that any such action brought in any such court has been brought in an inconvenient forum. Notwithstanding anything in this Agreement or any Pricing Agreement to the contrary, CAF hereby reserves the right to plead sovereign immunity under the United States Foreign Sovereign Immunities Act of 1976 with respect to actions brought under United States Federal securities laws or any state securities laws, and such appointment of an authorized agent for service of process and such waiver of immunity shall not be interpreted to include actions brought under United States Federal securities laws or any state securities laws.

16. Representation of Underwriters. The Representatives will act for the several Underwriters in connection with the offering of the Securities, and any action under this Agreement or the Pricing Agreement relating to the Designated Securities taken by the Representatives will be binding upon all the Underwriters.

17. Currency. If for the purpose of obtaining judgment in any court it is necessary to convert a sum due hereunder or under any Pricing Agreement in U.S. dollars into another currency, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures the payee could purchase U.S. dollars with such other currency in The City of New York on the business day preceding the day on which final judgment is given. The obligation of either party in respect of a sum due from it to the other party hereunder shall, notwithstanding any judgment in a currency (the “judgment currency”) other than U.S. dollars, be discharged only to the extent that on the business day following receipt by such other party of any sum adjudged to be so due in the judgment currency such other party may in accordance with normal banking procedures purchase U.S. dollars with the judgment currency; if the amount of U.S. dollars so purchased is

- 24 -

less than the sum originally due to such other party in U.S. dollars; such first party agrees, as a separate obligation and notwithstanding any such judgment, to indemnify such other party against such loss, and if the amount of U.S. dollars so purchased exceeds the sum originally due to such other party, such other party agrees to remit to such first party such excess.

18. Counterparts. This Agreement and each Pricing Agreement may be signed in any number of counterparts, each of which shall be deemed an original, which taken together shall constitute one and the same instrument.

19. Selling Restrictions. Each Underwriter represents and agrees that it has not and will not offer, sell or deliver any of the Designated Securities directly or indirectly, or distribute the General Disclosure Package, the Statutory Prospectus, the Final Prospectus or any other offering material relating to the Designated Securities, in or from any jurisdiction except under circumstances that will result in compliance with the applicable laws and regulations thereof and in a manner that will not impose any obligations on CAF except as set forth in this Agreement.

20. Free Writing Prospectus.

(a) CAF represents and agrees that, unless it obtains the prior consent of the Representatives, and each Underwriter represents and agrees that, unless it obtains the prior consent of CAF and the Representatives, it has not made and will not make any offer relating to the Designated Securities that would constitute an Issuer Free Writing Prospectus, or that would otherwise constitute a “free writing prospectus,” as defined in Rule 405 of the 1933 Act, required to be filed with the Commission, except (i) the final term sheet described in paragraph (b) below and (ii) each free writing prospectus identified in Schedule IV to the applicable Pricing Agreement. Any such free writing prospectus consented to by CAF and the Representatives is hereinafter referred to as a “Permitted Free Writing Prospectus.” CAF represents that it has treated and agrees that it will treat each Permitted Free Writing Prospectus as an “issuer free writing prospectus,” as defined in Rule 433 of the 1933 Act, and has complied and will comply with the requirements of Rules 164 and 433 of the 1933 Act applicable to any Permitted Free Writing Prospectus, including timely Commission filing where required, legending and record keeping.

(b) CAF will prepare a final term sheet relating to the Designated Securities, containing only information that describes the final terms of the Designated Securities, in the form included in Schedule III hereto or otherwise in a form consented to by the Representatives, and will file such final term sheet within the period required by Rule 433(d)(5)(ii) of the 1933 Act following the date such final terms have been established for all classes of the offering of the Designated Securities. Any such final term sheet is an Issuer Free Writing Prospectus and a Permitted Free Writing Prospectus for purposes of this Underwriting Agreement. Each Underwriter represents and agrees that, except as provided in the next sentence, it has not made and will not make any offer relating to the Designated Securities that would constitute a free writing prospectus without the prior consent of CAF, which consent shall not be unreasonably withheld. CAF consents to the use by any Underwriter of a free writing prospectus that contains only (i)(x) information describing the preliminary terms of the Designated Securities or their offering or (y) information that describes the final terms of the Designated Securities or their offering and that is included in the final term sheet of CAF contemplated in the first sentence of

- 25 -

this subsection or (ii) other information that is not “issuer information,” as defined in Rule 433 of the 1933 Act, it being understood that any such free writing prospectus referred to in clauses (i) or (ii) above shall not be an Issuer Free Writing Prospectus for purposes of this Underwriting Agreement.

(c) The term “Issuer Free Writing Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433 of the 1933 Act, relating to the Designated Securities in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in CAF’s records pursuant to Rule 433(g) of the 1933 Act; the term “General Use Issuer Free Writing Prospectus” means any Issuer Free Writing Prospectus that is intended for general distribution to prospective investors, as evidenced by its being specified in a schedule to the applicable Pricing Agreement; and the term “Limited Use Issuer Free Writing Prospectus” means any Issuer Free Writing Prospectus that is not a General Use Issuer Free Writing Prospectus.

21. Absence of Fiduciary Relationship. In connection with the offering and sale of the Designated Securities, CAF acknowledges and agrees that:

(a) No Other Relationship. The Representatives have been retained solely to act as underwriters in connection with the sale of Designated Securities and that no fiduciary, advisory or agency relationship between CAF and the Representatives has been created in respect of any of the transactions contemplated by the Underwriting Agreement, the Pricing Agreement or the Final Prospectus, irrespective of whether the Representatives have advised or is advising CAF on other matters;

(b) Arm’s-Length Negotiations. The price of the Designated Securities set forth in the Pricing Agreement was established by CAF following discussions and arms-length negotiations with the Representatives, and CAF is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated by the Pricing Agreement;

(c) Absence of Obligation to Disclose. CAF has been advised that the Representatives and their affiliates are engaged in a broad range of transactions which may involve interests that differ from those of CAF and that the Representatives have no obligation to disclose such interests and transactions to CAF by virtue of any fiduciary, advisory or agency relationship; and

(d) Waiver. In connection with the offering and sale of the Designated Securities, CAF waives, to the fullest extent permitted by law, any claims it may have against the Representatives for breach of fiduciary duty or alleged breach of fiduciary duty and agrees that the Representatives shall have no liability (whether direct or indirect) to CAF in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of CAF, including shareholders, employees or creditors of CAF.

22. Patriot Act. In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), the Underwriters are required to obtain, verify and record information that identifies their respective clients, including CAF, which information may include the name and address of their respective clients, as well as other information that will allow the underwriters to properly identify their respective clients.

- 26 -

Very truly yours,
Corporación Andina de Fomento
By:	/s/ L. Enrique García
Name:	L. Enrique García
Title:	Executive President

- 27 -

ANNEX I

PRICING AGREEMENT

[●]

[●], 20[●]

As Representatives of the several Underwriters

named in Schedule I to this Pricing Agreement

Ladies and Gentlemen:

Corporación Andina de Fomento (“CAF”), a multilateral financial institution, the Series A shareholders and full members of which are the Plurinational State of Bolivia, the Republics of Argentina, Colombia, Ecuador, Panama, Paraguay and Peru, the Federative Republic of Brazil, the Oriental Republic of Uruguay and the Bolivarian Republic of Venezuela (the “Full Member Shareholder Countries”), proposes, subject to the terms and conditions stated herein and in the Underwriting Agreement, dated August 6, 2015 (the “Underwriting Agreement”), to issue and sell to the Underwriters named in Schedule I hereto (the “Underwriters”), for whom [●] are acting as Representatives, the Securities specified in Schedule II hereto (the “Designated Securities”). In connection with the offering and sale of the Designated Securities, each of the provisions of the Underwriting Agreement is incorporated herein by reference in its entirety except to the extent such provision has been amended or otherwise modified by the provisions of this Pricing Agreement, and such incorporated provisions of the Underwriting Agreement, as amended by this Pricing Agreement, shall be deemed to be a part of this Pricing Agreement. Each reference to Representatives herein and in the provisions of the Underwriting Agreement so incorporated by reference shall be deemed to refer to you. Unless otherwise defined herein, terms defined in the Underwriting Agreement are used herein as therein defined. The Representatives designated to act on behalf of the Representatives and on behalf of each of the Underwriters of the Designated Securities pursuant to Section 16 of the Underwriting Agreement and the addresses of the Representatives referred to in Section 12 thereof are set forth at the end of Schedule II hereto.

A supplement to the Statutory Prospectus (as defined below) relating to the Designated Securities, in the form heretofore delivered to you, is now proposed to be filed with the Commission.

Subject to the terms and conditions set forth herein and in the Underwriting Agreement incorporated herein by reference, CAF agrees to issue and sell to each of the Underwriters, and each of the Underwriters agrees, severally and not jointly, to purchase from CAF, at the time and place and at the purchase price to the Underwriters set forth in Schedule II hereto, the principal amount of the Designated Securities set forth opposite the name of each such Underwriter in Schedule I hereto.

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If the foregoing is in accordance with your understanding, please sign and return to us four counterparts hereof, and upon acceptance hereof by you, on behalf of each of the Underwriters, this letter and such acceptance hereof, including the provisions of the Underwriting Agreement incorporated herein by reference, shall constitute a binding agreement between each of the Underwriters and CAF.

[Signature Pages Follow]

- 29 -

Very truly yours,

Corporación Andina de Fomento

By:

Name:

Title:

Accepted as of the date hereof:

[●]

By:

Name:

Title:

[[●]

By:

Name:

Title: ]

As Representatives of the several

Underwriters named in Schedule I to

this Pricing Agreement

SCHEDULE I

Underwriter	Principal Amount of Designated Securities to Be Purchased
[●]	US$	[●]
[●]	US$	[●]
Total	US$	[●]

SCHEDULE II

Title of Designated Securities:

[●] Notes due [●]

Aggregate principal amount:

U.S.$[●]

Price to Public:

[●]% of the principal amount of the Designated Securities, plus accrued interest, if any, from [●]

Purchase Price by Underwriters:

[●]% of the principal amount of the Designated Securities, plus accrued interest, if any, from [●]

Form of Designated Securities:

Book-entry only form represented by one or more global securities deposited with The Depository Trust Company (“DTC”) or its designated custodian, to be made available for checking by the Representatives at least twenty-four hours prior to the Time of Delivery at the office of DTC

Specified funds for payment of purchase price:

Federal (same-day) funds

Time of Delivery:

[●] (New York City time), [●]

Maturity:

[●]

Interest Rate:

[[●]% per annum]

Interest Payment Dates:

[●] and [●], with first interest payment date on [●]

Interest Payable From:

[●]

Redemption Provisions:

No redemption provisions

Sinking Fund Provisions:

No sinking fund provisions

Closing location for delivery of Designated Securities:

Offices of [●]

Listing:

[Application will be made to admit the Designated Securities to the Official List of the United Kingdom Listing Authority and to the London Stock Exchange for the Designated Securities to be admitted to trading on the Regulated Market of the London Stock Exchange.]

Name and address of the Representatives:

[●]

Fiscal Agency Agreement:

Fiscal Agency Agreement, dated as of March 17, 1998, between CAF and The Bank of New York (as successor to JPMorgan Chase Bank, N.A.)

SCHEDULE III

General Disclosure Package

1. Prospectus dated [●] as supplemented by Preliminary Prospectus Supplement, dated [●].

2. Final Term Sheet dated [●], substantially in the form and substance set forth below:

Corporación Andina de Fomento

US$[●] of [●] Notes due 20[●]

Issuer:	Corporación Andina de Fomento
Ratings(1):	Moody’s: [Aa3 (Stable)] / S&P: [AA- (Stable)] / Fitch: [AA- (Stable)]
Security Status:	[Senior unsecured notes; not secured by any property or assets; notes rank equally with all other unsecured and unsubordinated indebtedness]
Transaction Type:	SEC Registered
Currency:	[U.S. Dollars]
Total Principal Amount:	U.S.$[●]
Offering Price:	[●]% plus accrued interest, if any, from [●]
Gross Proceeds (excluding accrued interest):	U.S.$[●]
Trade Date:	[●]
Settlement:	[●] [(T+3)]
Maturity:	[●]
Coupon:	[[●]% per annum]
Benchmark Instrument:	UST [●]% due [●]
Benchmark Instrument Yield:	[●]%
Spread to Benchmark Instrument:	[●] bps
Yield to Maturity:	[●]%
Interest Rate Payment Frequency:	[Semi-annual]
Interest Payment Dates:	[●] and [●], with first interest payment date on [●]
Interest Rate Basis:	[30/360]
Redemption Provisions:	Notes may not be redeemed prior to [●]
Sinking Fund Provisions:	[No sinking fund provisions]

Form:	Global note held by depositary or the depositary’s custodian
Denominations:	Denominations of $1,000 and integral multiples of $1,000 in excess thereof
Clearing:	DTC / Euroclear / Clearstream
Joint Bookrunners:	[●]
Names and Addresses of Representatives:	[●]
Governing Law:	New York
Listing:	[Application will be made to admit the notes to the official list of the United Kingdom Listing Authority and to the regulated market of the London Stock Exchange]
SEC Registered Global:	ISIN: [●] CUSIP: [●]

⁽¹⁾  These securities ratings have been provided by Moody’s, S&P and Fitch Ratings. These ratings are not a recommendation to buy, sell or hold these securities. Each rating may be subject to revision or withdrawal at any time, and should be evaluated independently of any other rating.

This communication is intended for the sole use of the person to whom it is provided by the issuer.

The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC’s web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling [●] at [●] [or [●] at [●]].

ANY DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR BELOW ARE NOT APPLICABLE TO THIS COMMUNICATION AND SHOULD BE DISREGARDED. SUCH DISCLAIMERS OR OTHER NOTICES WERE AUTOMATICALLY GENERATED AS A RESULT OF THIS COMMUNICATION BEING SENT VIA BLOOMBERG OR ANOTHER E-MAIL SYSTEM.

SCHEDULE IV

Free Writing Prospectuses

SCHEDULE V

Form of Blood Letter

[●]

[●], 20[●]

Corporación Andina de Fomento

Torre CAF

Avenida Luis Roche, Altamira

Caracas, Venezuela

Subject:	$[●] Principal Amount of [●] Notes Due 20[●]
	Registration Statement under Schedule B (File No. 333-[●])

Ladies and Gentlemen:

This letter is delivered to you in connection with the above-captioned Registration Statement filed by you with the Securities and Exchange Commission and pertains to such Registration Statement, including the Prospectus dated [●] and the Prospectus Supplement dated [●] relating to the $[●] aggregate principal amount of your [●] Notes Due 20[●].

We have furnished to you for use in the Prospectus Supplement the following information in the Prospectus Supplement under the heading “Underwriting”:

(a) The text under the subheading “Commissions and Discounts” concerning the terms of the offering by the Underwriters;

(b) The first and second sentences of the paragraph of text under the subheading “Trading of the Notes” concerning market making by the Underwriters;

(c) The text under the subheading “Price Stabilization and Short Positions” concerning stabilizing transactions, syndicate covering transactions and penalty bids;

(d) The first sentence of the first paragraph of text under the subheading “Underwriters and Affiliates” concerning certain business activities of the Underwriters; and

(e) The second paragraph of text under the subheading “Underwriters and Affiliates” concerning certain investment activities of the Underwriters.

*        *        *

Sincerely,

[●]
By:
[[●]
By:	]

ANNEX II

Comfort from Auditors

(i) in their opinion the audited financial statements included in the Registration Statement and the Prospectus, as amended or supplemented, comply as to form in all material respects with the applicable accounting requirements of the 1933 Act and the related published rules and regulations thereunder as they apply to filings under Schedule B.

(ii) they are independent certified public accountants with respect to CAF within the meaning of the 1933 Act and the applicable published rules and regulations thereunder.

(iii) with respect to unaudited interim quarterly financial statements included in the Registration Statement or the Prospectus, they have (A) performed the procedures specified by the American Institute of Certified Public Accountants for review of interim quarterly financial information as described in SAS No. 71, Interim Financial Information, and (B) inquired of certain officials of CAF who have responsibility for financial and accounting matters whether the unaudited interim quarterly period financial statements referred to in this clause (iii) comply as to form, in all material respects, with the applicable accounting requirements of the 1933 Act and the related published rules and regulations as they apply to filings under Schedule B, nothing came to their attention that caused them to believe that the unaudited quarterly interim period financial statements do not comply as to form, in all material respects, with the applicable accounting requirements of the 1933 Act and the related published rules and regulations thereunder as they apply to filings under Schedule B.

(iv) with respect to the period from the date of the latest financial statements included in the Registration Statement or the Prospectus to the most recent month end, they have conducted limited procedures, not constituting an examination in accordance with U.S. generally accepted auditing standards, consisting of a reading of the month end financial statements and other information referred to below, reading of the minute books of CAF since the date of its latest financial statements included in the Registration Statement or the Prospectus and inquiries of officials of CAF responsible for financial and accounting matters and such other inquiries and procedures as may be specified in such letter. In addition,

(A) Officials of CAF have advised them that no such financial statements as of any date or for any period subsequent to the specified month end were available. The financial information as of the relevant monthly period and for such monthly period is incomplete in that it omits statements of shareholders’ equity and of cash flows and other disclosures.

(B) They have inquired of certain officials of CAF who have responsibility for financial and accounting matters whether the unaudited financial statements for the relevant month end are stated on a basis substantially consistent with that of the audited financial statements included in the Registration Statement or the Prospectus.

(v) nothing came to their attention as a result of the procedures described in (iv) that caused them to believe that:

(A) as of the relevant month end referred to in (iv), there was any increase in bonds, borrowings and other obligations, commercial paper or total liabilities, or decreases in total assets, total shareholders’ equity or loans and equity securities, or changes in subscribed and paid-in capital of CAF as compared with the amounts shown in the most recent balance sheet included in the Registration Statement or the Prospectus, except, in each case, changes, increases or decreases which the Prospectus discloses that have occurred or may occur; or

(B) for the period from the date of the latest financial statements included in the Registration Statement or the Prospectus to the month end referred to in (iv) above, there were any decreases, as compared with the corresponding period in the preceding year, in net other income, net financial income, net income, or in the provision for losses except in all instances for increases, decreases or changes that the Registration Statement or the Prospectus disclose have occurred or may occur.

(vi) As mentioned in (iv)(A), CAF officials have advised them that no financial statements as of any date or for any period subsequent to the relevant month end are available; accordingly the procedures carried out by them with respect to changes in the financial statements after the relevant month end, have, of necessity, been even more limited than those with respect to the month end period referred to in (iv). They have inquired of certain officials of CAF who have responsibility for financial and accounting matters regarding whether at the five day period prior to the date of the letter, there were any decreases in subscribed and paid in capital, total assets or loans and equity securities, or increases in bonds, borrowings and other obligations, commercial paper or total liabilities of CAF as compared with the amounts shown in the latest financial statements included in the Registration Statement or the Prospectus. On the basis of these inquiries and their readings of the minutes described in (iv), nothing came to their attention that caused them to believe that there was any such decrease or increase, except in all instances for decreases or increases that the Registration Statement or the Prospectus disclose have occurred or may occur.

(vii) they have compared specified dollar amounts (or percentages derived from such dollar amounts) and other financial information contained in the Registration Statement or the Prospectus (in each case to the extent that such dollar amounts, percentages and other financial information are derived from the general accounting records of CAF subject to the internal controls of CAF’s accounting system or are derived directly from such records by analysis or computation) with the results obtained from inquiries, a reading of such general accounting records and other procedures specified in such letter and have found dollar amounts, percentages and other financial information to be in agreement with such results, except as otherwise specified in such letter.

All references in this Annex II to the Prospectus shall be deemed to refer to the Prospectus as defined in the Underwriting Agreement as of the date of the letter delivered on the date of the Pricing Agreement for purposes of such letter and to the Prospectus as amended or supplemented in relation to the applicable Designated Securities for purposes of the letter delivered at the Time of Delivery for such Designated Securities.

EX-4.3

Exhibit 4.3

[Form of Security]

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO CORPORACIÓN ANDINA DE FOMENTO OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]*

CUSIP NO.	No. R-
ISIN NO.
Common Code:

CORPORACIÓN ANDINA DE FOMENTO

[Title of Security]

1. CORPORACIÓN ANDINA DE FOMENTO (“CAF”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of

            [DOLLARS]

([$]    ,    ,    )

on                     , and to pay interest on said principal sum from             or from the most recent [            or             ] to which such interest has been paid or duly provided for, [semi-annually] on each [            and             ], commencing             , at the rate [of     % per annum], until payment of said principal sum has been made or duly provided for. If such principal payment date or any interest payment date would otherwise be a day which is not a Business Day (as defined below), such principal payment date or any such interest payment date shall be postponed to the next Business Day. Business Day means any day on which commercial banks and foreign exchange markets settle payments in The City of New York. The interest so payable and punctually paid or duly provided for on any interest payment date will be paid to the person in whose name this [Global] Security (as defined in paragraph 6) is registered at the close of business on the preceding [            or             ], as the case may be (“Record Date”). Interest will be calculated on the basis of [a 360-day year, consisting of twelve 30-day months]. Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the person in whose name this [Global] Security is registered on such Record Date and may be paid to the person in whose name this [Global] Security is registered at the close of business on a special record date for the payment of such defaulted interest to be fixed by CAF or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which [the Securities (as defined in paragraph 3) evidenced by] this [Global] Security may be listed. CAF and the Fiscal Agent may deem and treat the registered owner hereof as the absolute owner hereof (notwithstanding any notice of ownership or writing) for the purpose of receiving payment hereon and for all other purposes whether or not this [Global] Security or any of the Securities evidenced hereby shall be overdue.

* Include if a Global security.

Payment of the principal of and interest on this [Global] Security will be made in immediately available funds in [U.S. dollars or in such other coin or currency of the United States of America] as at the time of payment is legal tender for the payment therein of public and private debts. [In the case of a Security in definitive form (as provided in paragraph 6), payment of the principal will be made against presentation and surrender of the Security at the corporate trust office of the Fiscal Agent, as paying agent, in The City of New York and at the offices of such other paying agents as CAF shall have appointed. Payment of interest on each Security in definitive form will be made at the corporate trust office of the Fiscal Agent in The City of New York and at the offices of such other paying agents as CAF shall have appointed, provided that interest on each Security may be paid (i) by a [U.S. dollar] check drawn on a bank in The City of New York mailed to the address of the person entitled thereto as such address shall appear in the Security Register (as defined in paragraph 6) on the Record Date for such payment or (ii) at the request of a Holder (as defined in paragraph 3) of more than U.S.$1,000,000* principal amount (or the equivalent thereof in another currency or currency unit) of Securities, by wire transfer to such Holder.] CAF covenants that until this [Global] Security has been delivered to the Fiscal Agent for cancellation, or monies sufficient to pay the principal of and interest on this [Global] Security have been made available for payment and either paid or returned to CAF as provided herein, CAF will at all times maintain an office or agency in The City of New York for the payment of the principal of and interest on the Securities as herein provided.

2. All amounts payable (whether in respect of principal, interest or otherwise) in respect of the 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 on behalf of any of the full member shareholder countries of CAF or any political subdivision thereof or any authority or agency therein or thereof having the power to tax, unless the withholding or deduction of such taxes, duties, assessments or governmental charges is required by law. In that event, CAF will pay such additional amounts as may be necessary in order that the net amounts receivable by the Holder of any Security after such withholding or deduction shall equal the respective amounts that would have been receivable by such Holder in the absence of such withholding or deduction, except that no such additional amounts shall be payable in relation to any payment in respect of any Security:

(a) to, or to a third party on behalf of, a Holder of a Security who is liable for such taxes, duties, assessments or governmental charges in respect of such Security by reason of his having some connection with any of the full member shareholder countries of CAF other than the mere holding of such Security; or

(b) presented for payment more than 30 days after the Relevant Date, except to the extent that the relevant Holder would have been entitled to such additional amounts on presenting the same for payment on the expiry of such period of 30 days.

As used herein, 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 such due date, it means the first date on which, the full amount of such moneys having been so received and being available for payment to Holders of Securities, notice to that effect shall have been duly provided as set forth in this [Global] Security.

3. This [Global] Security is [a permanent global security evidencing] [one of] the series of a duly authorized issue of debt securities of CAF, initially issued in the aggregate principal

* If the Security is denominated in another currency or currency unit, insert the amount of such currency or currency unit that is the equivalent (rounded upwards) of U.S.$1,000,000.

amount of U.S.$            , known as its “[Title of Securities]” (the “Securities”). CAF has, for the benefit of the Holders from time to time of the Securities, entered into a Fiscal Agency Agreement, dated as of March 17, 1998 (the “Fiscal Agency Agreement”), with The Bank of New York Mellon (as successor to JPMorgan Chase Bank, National Association), as Fiscal Agent, copies of which Agreement are on file and available for inspection during normal business hours at the corporate trust office of the Fiscal Agent in The City of New York. The Bank of New York Mellon and its respective successors as Fiscal Agent are herein called “Fiscal Agent”. As used herein, the term “Holder” means the person in whose name the Security is registered in the Security Register.

4. The Securities constitute direct, unconditional, unsecured and general obligations of CAF. So long as any of the Securities shall be 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, CAF will not cause or permit to be created on any of its property or assets any mortgage, pledge or other lien or charge as security for any bonds, notes or other evidences of indebtedness heretofore or hereafter issued, assumed or guaranteed by CAF for money borrowed (other than purchase money mortgages, pledges or liens on property purchased by CAF as security for all or part of the purchase price thereof), unless the Securities shall be secured by such mortgage, pledge or other lien or charge equally and ratably with such other bonds, notes or evidences of indebtedness.

Subject to the preceding paragraph, the Securities and each of them will rank pari passu with all other unsecured Indebtedness of CAF. “Indebtedness” means all indebtedness of CAF in respect of monies borrowed by CAF and guarantees given by CAF for monies borrowed by others.

5. [The Securities are not subject to redemption prior to their maturity and are not entitled to the benefit of any sinking fund.]

6. [Except as set forth in the following sentence, the Securities are issuable only as fully registered global securities, without interest coupons, each registered in the name of DTC, a nominee thereof or a successor to DTC or a nominee thereof (each, a “Global Security”), and (i) no Global Security may be transferred, except in whole and not in part, and only to DTC, one or more nominees of DTC or one or more respective successors of DTC and its nominees, and (ii) no Global Security may be exchanged for any Security other than another Global Security. Notwithstanding any other provisions of the Fiscal Agency Agreement or this Global Security, a Global Security shall be transferred to, or exchanged for registered Securities registered in the name of, a person other than DTC, a nominee of DTC or a successor of DTC or its nominee if (i) DTC (a) notifies CAF that it is unwilling or unable to continue as depositary for such Global Security or (b) ceases to be a clearing agency registered under the Securities Exchange Act of 1934 at a time when it is required to be, and in either such case (a) or (b) a successor depositary is not appointed by CAF within 90 days after receiving such notice or becoming aware that DTC is no longer so registered, (ii) CAF, in its sole discretion, instructs the Fiscal Agent in writing that a Global Security shall be so transferable and exchangeable or (iii) there shall have occurred and be continuing an event of default with respect to the Securities evidenced by this Global Security (as set forth in paragraph 9). Registered Securities issued in exchange for this Global Security will be registered in such names, and issued in such denominations (of [$]1,000 and integral multiples thereof), as an authorized representative of DTC shall request.]*

[Subject, in the case of this Global Security, to the preceding paragraph, transfer]* [Transfer] of this [Global] Security is registrable on the Security Register upon surrender of this [Global] Security for registration at the office of the Fiscal Agent duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to CAF and the Fiscal Agent duly executed by, the Holder hereof

* Include if a Global Security.

or his attorney duly authorized in writing. Upon such surrender of this [Global] Security for registration of transfer, CAF shall execute, and the Fiscal Agent shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new registered Securities, dated the date of authentication thereof, of any authorized denominations and of a like aggregate principal amount, and registered in such name or names as may be requested [(subject, in the case of this Global Security, to the preceding paragraph)]. CAF and the Fiscal Agent may deem and treat the registered owner hereof as the absolute owner hereof (notwithstanding any notice of ownership or writing hereon made by anyone other than CAF or the Fiscal Agent) for the purposes of receiving payment hereon or on account hereof and for all other purposes whether or not this [Global] Security shall be overdue. CAF covenants that, at all times so long as this [Global] Security shall be outstanding, it shall maintain in The City of New York an office or agency for the registration and registration of transfers, as aforesaid, of the registered Securities. CAF has appointed the corporate trust office of the Fiscal Agent as its agent in The City of New York for such purpose and has agreed to cause to be kept at such office a register (the register maintained in such office and in any other office or agency for such purpose being herein sometimes collectively referred to as the “Security Register”) in which, subject to such reasonable regulations as it may prescribe, CAF shall provide for such registration and registration of transfers.

In the manner and subject to the limitations and upon payment of the charges (if any) provided in the Fiscal Agency Agreement and this [Global] Security, registered Securities may be exchanged for a like aggregate principal amount of registered Securities of other authorized denominations but may never be exchanged for coupon Securities. CAF covenants that it shall maintain at all times so long as this [Global] Security shall be outstanding, in The City of New York, an office or agency where registered Securities may be surrendered in exchange for registered Securities in other authorized denominations. CAF has appointed the corporate trust office of the Fiscal Agent, in The City of New York, as its agent for such purposes.

No registrations of transfers or exchanges of Securities shall be made for a period of 15 days preceding any interest payment date.

All Securities issued upon any registration of transfer or exchange of Securities shall be the valid obligations of CAF, evidencing the same debt, and entitled to the same benefits, as the Securities surrendered upon such registration of transfer or exchange [(except that a Security not in global form issued upon any registration of transfer or exchange of this Global Security shall not be subject or entitled to the provisions set forth in this Global Security relating to Securities in global form)]*. Any new Security delivered pursuant to this Paragraph 6 shall be so dated that neither gain nor loss in interest shall result from such registration or exchange.

No service charge shall be made to any Holder for any such exchange or registration of transfer, but CAF may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

7. In case any Security [(including this Global Security)] shall at any time become mutilated or destroyed or stolen or lost, then, provided that such Security, or evidence of the loss, theft or destruction thereof (together with the indemnity hereinafter referred to and such other documents or proof as may be required in the premises) shall be delivered to the Fiscal Agent in The City of New York, a replacement Security of like tenor and principal amount will be issued by CAF and, at its request, authenticated and delivered by the Fiscal Agent at the office of the Fiscal Agent, in The City of New York, in exchange for the Security so mutilated, or in lieu of the Security so destroyed or stolen or lost; and provided however that, in the case of destroyed, stolen or lost Securities, (i) CAF or the Fiscal Agent shall

* Include if Global Security

not have received notice that such Securities have been acquired by a bona fide purchaser, and (ii) CAF and the Fiscal Agent shall have received evidence satisfactory to them that such Securities were destroyed, stolen or lost, and, if required, shall also have received an indemnity satisfactory to each of them. All expenses and reasonable charges associated with procuring such indemnity and with the preparation, authentication and delivery of a replacement Security shall be borne by the owner of the Security mutilated, destroyed, stolen or lost. In case such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, CAF in its discretion may, instead of issuing a new Security, pay or cause to be paid such Security.

Any new Security delivered pursuant to this Paragraph 7 shall be so dated that neither gain nor loss in interest shall result from such replacement.

Upon the issuance of any new Security under this Paragraph 7, CAF may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Fiscal Agent) connected therewith.

Every new Security issued pursuant to this Paragraph 7 in lieu of any mutilated, destroyed, lost or stolen Security, shall constitute an original additional contractual obligation of CAF, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone.

The provisions of this Paragraph 7 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities.

8. In order to provide for the payment of the principal of and the interest on the Securities as the same shall become due, CAF does hereby agree to pay to the Fiscal Agent at its corporate trust office in The City of New York, in immediately available funds in [U.S. dollars] or in such other coin or currency of [the United States of America] as at the time of payment is legal tender for the payment therein of public and private debts, the amounts set forth below in this paragraph, to be held in trust and applied by the Fiscal Agent as hereinafter set forth: (a) CAF shall pay to the Fiscal Agent at least one (1) full Business Day prior to each interest payment date an amount sufficient to pay the interest becoming due on all Securities on such interest payment date and the Fiscal Agent shall apply the amounts so paid to it to the payment of such interest on such interest payment date; and (b) at least one (1) full Business Day prior to the maturity date of the Securities, CAF shall pay to the Fiscal Agent an amount which, together with any monies then held by the Fiscal Agent and available for the purpose, shall be equal to the entire amount of interest and principal to be due on such maturity date on the Securities then outstanding, and the Fiscal Agent shall apply such amount to the payment of interest on and principal of such Securities in accordance with the terms thereof.

Any monies paid by CAF to the Fiscal Agent for the payment of the principal of or interest on any Securities and remaining unclaimed at the end of two (2) years after such principal or interest shall have become due and payable and provision for such payment shall have been made shall then be repaid to CAF, and upon such repayment the aforesaid trust shall terminate and all liability of the Fiscal Agent with respect to such monies shall thereupon cease, without, however, limiting in any way the unconditional obligation of CAF to pay the principal of and interest on this [Global] Security as the same shall become due.

9. If an Event of Default (as defined below) occurs, each Holder of Securities may, by written notice to CAF and the Fiscal Agent, declare the principal of and any accrued interest on the Securities held by it to be, and such principal and accrued interest shall thereupon become, immediately due and payable, unless prior to receipt of such notice by CAF all Events of Default in respect of such

Securities shall have been cured. If all such Events of Default shall have been cured following such declaration, such declaration may be rescinded by any such Holder with respect to such previously accelerated Securities upon delivery of written notice of such rescission to CAF and the Fiscal Agent.

An “Event of Default” is: (a) a failure to pay any principal of or interest on the Securities when due and the continuance of such failure for 30 days; (b) a failure to perform or observe any material obligation under or in respect of the Securities or the Fiscal Agency Agreement and the continuance of such failure for a period of 90 days after written notice thereof has been delivered to CAF and to the Fiscal Agent by the Holder of any Security; (c) a failure to pay any amount in excess of U.S.$20,000,000 (or the equivalent thereof 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 such failure until the expiration of any applicable grace period or 30 days, whichever is longer; or (d) the acceleration of any indebtedness incurred or assumed by CAF with an aggregate principal amount in excess of U.S.$20,000,000 (or the equivalent thereof in any other currency or currencies) by any holder or holders thereof.

10. The Fiscal Agency Agreement and the terms and conditions of the Securities may be modified or amended by CAF and the Fiscal Agent, without the consent of the Holders of the Securities, for the purpose of adding to the covenants of CAF for the benefit of the Holders, surrendering any right or power conferred upon CAF, securing the Securities pursuant to the requirements of the Securities or otherwise, effecting the issue of further Securities as described in paragraph 15, curing any ambiguity, correcting or supplementing any defective provision therein, or for any purpose that CAF deems necessary or desirable and that shall not adversely affect the interests of the Holders of the Securities in any material respect, to all of which the Holder of this Security shall, by acceptance hereof, consent.

CAF may modify any of the terms or provisions contained in the Securities in any way with the written consent of the Holders of not less than 66 2/3% in principal amount of the Securities at the time outstanding, provided, however, that no such action may, without the consent of the Holder of each Security affected thereby, (a) change the due date for the payment of the principal of or of any installment of interest on the Securities, (b) reduce the principal amount of the Securities, the portion of such principal that is payable upon acceleration of the maturity of such Security or the interest rate thereon, (c) change the currency or place of payment of principal of or interest on the Securities, (d) reduce the proportion of the principal amount of the Securities the vote or consent of the Holders of which is necessary to modify, amend or supplement the Fiscal Agency Agreement or the terms and conditions of the Securities or to make, take or give any request, demand, authorization, direction, notice, consent, waiver or other action provided hereby or therein to be made, taken or given, or (e) change the obligation of CAF to pay additional amounts.

11. CAF hereby certifies and declares that all acts and conditions required to be performed and to have happened precedent to the creation and issuance of this Global Security, and to constitute the same the valid and legally binding obligation of CAF in accordance with its terms, have been performed and have happened in due and strict compliance with the Constitutive Agreement of CAF.

12. All notices will be delivered by CAF in writing to each Holder of the Securities. [If at the time of any such notice the Securities are represented by this Global Security, such notice shall be delivered to DTC and shall be deemed to have been given three Business Days after delivery to DTC. If at the time of any such]* [Such] notice the Securities are not represented by any Global Security, such notice shall be delivered to the Holders of the Securities and in such case shall be deemed to have been given three Business Days after the mailing of such notice by first class mail.

* Include if a Global Security.

13. This [Global] Security shall not become valid or obligatory for any purpose unless and until this [Global] Security has been authenticated by The Bank of New York Mellon, or its successor, as Fiscal Agent.

14. This [Global] Security shall be governed by, and shall be construed in accordance with, the laws of the State of New York.

15. CAF may at any time or from time to time, without notice to or the consent of the Holders of the Securities, create and issue further Securities ranking pari passu with the Securities in all respects (or in all respects except for the payment of interest accruing prior to the issue date of such further Securities or except for the first payment of interest following the issue date of such Securities) and so that such further Securities shall be consolidated and form a single issue with the Securities and shall have the same terms as to status, redemption or otherwise as the Securities.

16. CAF has appointed CT Corporation System in The City New York as its authorized agent upon which process may be served in any action arising out of or based on the Securities which may be instituted in any State or Federal court in The City and State of New York by the Fiscal Agent or the Holder of a Security, and, subject to the last sentence of this paragraph 16, CAF hereby expressly accepts the jurisdiction of any such court in respect of any such action. CAF hereby agrees to keep such appointment in force at all times while this or any other Security shall be outstanding. CAF hereby waives irrevocably any immunity (except for immunity from execution prior to final judgment) to which it might otherwise be entitled in any action based on the Securities which may be instituted by the Holder of any Security in any State or Federal court in The City and State of New York. Anything in the Fiscal Agency Agreement or this [Global] Security to the contrary notwithstanding, such appointment of an authorized agent for service of process and such waiver of immunity shall not be interpreted to include actions brought under the United States Federal securities laws.

*    *    *    *    *

IN WITNESS WHEREOF, CAF has caused this Global Security to be executed with the signature of the Director of Financial Policies and International Issues of CAF, all in The City of New York, State of New York, United States of America.

Dated:                     

CORPORACIÓN ANDINA DE FOMENTO

By:    [Executive President]

[FORM OF CERTIFICATE OF AUTHENTICATION]

This is one of the Securities referred to in the within-mentioned Fiscal Agency Agreement.

THE BANK OF NEW YORK MELLON,

as Fiscal Agent

By:    Authorized Officer

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto (name and address including zip code and taxpayer I.D. or Social Security Number of assignee)

the within Security and does hereby irrevocably constitute and appoint

to transfer such Security on the books kept for registration thereof with full power of substitution in the premises.

Dated:                                                                                       ^*

Signature Guaranteed:

^*  NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Security in every particular, without alteration, enlargement or any change whatsoever.

EX-5.1

Exhibit 5.1

Caracas, August 6, 2015

Dear Sirs:

In my capacity as Acting General Counsel to Corporación Andina de Fomento (“CAF”), I am familiar with provisions of the treaty of February 7, 1968 establishing CAF, as amended (the “Constitutive Agreement”), and have examined copies of such documents as I have deemed necessary with respect to the entry into force of the Constitutive Agreement.

I have reviewed the Registration Statement under Schedule B of the United States Securities Act of 1933 (the “Registration Statement”), to be filed by CAF with the United States Securities and Exchange Commission on or about August 6, 2015, pursuant to which CAF proposes to offer from time to time up to an aggregate initial offering price of U.S.$3,000,000,000 of its guarantees (the “Guarantees”) or its Debt Securities (the “Debt Securities”) of which U.S.$500,000,000 were previously registered on the registration statement under Schedule B (File No. 333-189174) originally filed by CAF on June 7, 2013.

I am also familiar with:

i. The provisions of the form of Fiscal Agency Agreement (the “Fiscal Agency Agreement”) between CAF and The Bank of New York Mellon, as Fiscal Agent, relating to the issue from time to time of the Debt Securities, filed as an exhibit to the Registration Statement;

ii. The form of Debt Security filed as an exhibit to the Registration Statement; and

iii. The proceedings taken by CAF to authorize the issue and sale of the Debt Securities and the Guarantees and the taking of such other action necessary or appropriate therefore, including, without limitation, (a) the signing of the Fiscal Agency Agreement, and (b) the registration of the Debt Securities and the Guarantees under the United States Securities Act of 1933.

I have reviewed copies of such other documents and have made such investigations as I have deemed necessary to give this opinion.

Based on the foregoing, I am of the opinion as follows:

1. The Fiscal Agency Agreement has been duly authorized, executed and delivered by CAF.

2. The Fiscal Agency Agreement constitutes a valid and legally binding obligation of CAF in accordance with its terms.

3. When the issuance of the Debt Securities and approval of the final terms thereof have been duly authorized by appropriate corporate action and when the Debt Securities have been duly signed and delivered by CAF and authenticated by the Fiscal Agent in accordance with the Fiscal Agency Agreement, the Debt Securities will constitute valid and legally binding obligations of CAF in accordance with their terms.

4. When the issuance of the Guarantees and approval of the final terms thereof have been duly authorized by appropriate corporate action and when the Guarantees have been duly executed and delivered by CAF in accordance with the relevant guarantee agreement, subject to the final terms of the Guarantees being in compliance with applicable law, the Guarantees will constitute valid and legally binding obligations of CAF in accordance with their terms.

5. The filing of the Registration Statement has been duly authorized, and it has been duly executed on behalf of CAF.

6. I hereby consent to the filing of this opinion with the Registration Statement and to the use of my name under the caption “Validity of the Debt Securities” in the prospectus constituting a part of the Registration Statement.

Very truly yours,

/s/ Fred Aarons

Fred Aarons

Deputy General Counsel to

Corporación Andina de Fomento

EX-8.1

Exhibit 8.1

August 6, 2015

Corporación Andina de Fomento,

Torre CAF,

Avenida Luis Roche, Altamira,

Caracas, Venezuela.

Ladies and Gentlemen:

As counsel to Corporación Andina de Fomento (the “Company”) in connection with the registration under the Securities Act of 1933, as amended (the “Act”), of up to $3,000,000,000 aggregate offering price of the Company’s Debt Securities and Guarantees pursuant to the Prospectus which forms a part of the Registration Statement of the Company to which this opinion is filed as an exhibit, we hereby confirm to you that the discussion set forth under the heading “Taxation- United States Taxation” therein is our opinion subject to the limitations set forth therein.

We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and to the reference to us under the heading “Taxation - United States Taxation”. In giving such consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Act.

Very truly yours,

/s/ Sullivan & Cromwell LLP

EX-23.1

Exhibit 23.1

Lara Marambio & Asociados RIF J-00327665-0 Torre B.O.D., Piso 21 Av. Blandĺn, La Castellana Caracas 1060 - Venezuela   Telf: +58 (212) 206 8501 Fax: +58 (212) 206 8870 www.deloitte.com/ve

CONSENT OF INDEPENDENT AUDITORS

We consent to the use in this Registration Statement on Schedule B of our report dated January 30, 2015 relating to the financial statements as of and for the years ended December 31, 2014, 2013 and 2012 of Corporación Andina de Fomento (CAF), and of our report dated January 30, 2015 relating to management’s assertion that CAF maintained effective internal control over financial reporting as of December 31, 2014, appearing in the Prospectus, which is a part of such Registration Statement, and to the reference to us under the headings “Selected Financial Information” and “Experts” in such Prospectus.

/s/ Deloitte

August 6, 2015

Caracas - Venezuela

Lara Marambio & Asociados. A member firm of Deloitte Touche Tohmatsu Limited.

www.deloitte.com/ve

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.