S-B

As filed with the Securities and Exchange Commission on August 9, 2019

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 Gabriel Felpeto 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	USD 2,500,000,000(3)	USD 303,000

(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 USD 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 USD 500,000,000 principal amount of securities registered on the Registrant’s previously filed Registration Statement under Schedule B (File No. 333-225593), originally filed on June 13, 2018. The Registrant paid filing fees of USD 62,250 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 an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

SUBJECT TO COMPLETION

PRELIMINARY PROSPECTUS DATED AUGUST 9, 2019

USD 3,000,000,000

CORPORACIÓN ANDINA DE FOMENTO

Debt Securities

Guarantees

We may from time to time offer up to USD 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 USD 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                                 , 2019

TABLE OF CONTENTS

ABOUT THIS PROSPECTUS	1
FORWARD-LOOKING INFORMATION	1
CORPORACIÓN ANDINA DE FOMENTO	2
LEGAL STATUS OF CAF	3
USE OF PROCEEDS	4
CAPITALIZATION AND INDEBTEDNESS	4
CAPITAL STRUCTURE	5
SELECTED FINANCIAL INFORMATION	12
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	14
OPERATIONS OF CAF	25
FUNDED DEBT	37
DEBT RECORD	38
ASSET AND LIABILITY MANAGEMENT	39
ADMINISTRATION	40
THE FULL MEMBER SHAREHOLDER COUNTRIES	44
DESCRIPTION OF THE DEBT SECURITIES	45
DESCRIPTION OF THE GUARANTEES	51
TAXATION	52
PLAN OF DISTRIBUTION	56
VALIDITY OF THE DEBT SECURITIES	57
VALIDITY OF THE GUARANTEES	57
EXPERTS	57
AUTHORIZED REPRESENTATIVE	57
WHERE YOU CAN FIND MORE INFORMATION	57
INDEX TO FINANCIAL STATEMENTS	F-1
SUPPLEMENTARY INFORMATION (UNAUDITED) AS OF MARCH  31, 2019 AND DECEMBER 31, 2018 AND FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2019 AND 2018	S-1

ABOUT THIS PROSPECTUS

This prospectus is part of a registration statement that we filed with the Securities and Exchange Commission under the Securities Act of 1933, as amended, which we refer to as the Securities Act, using a “shelf” registration process. Under the shelf process, we may from time to time sell any combination of the securities described in this prospectus in one or more offerings up to a total dollar amount of USD 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.

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,” “$,” “U.S.$”, “USD”, “US Dollars” or “U.S. dollars”). All references to “we,” “us” and “our” refer to CAF.

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.

1

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 Argentine Republic, the Republics of Colombia, Ecuador, Panama, Paraguay, Peru, and Trinidad and Tobago, the Federative Republic of Brazil, the Oriental Republic of Uruguay,; and the Bolivarian Republic of Venezuela, each of which is referred to in this prospectus as a full member shareholder country and which are referred to collectively in this prospectus as the full member shareholder countries. At December 31, 2018, the full member shareholder countries of CAF collectively accounted for 91.77% 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 and Spain, each of which is referred to in this prospectus as an associated shareholder country and which are referred to collectively in this prospectus as the associated shareholder countries. At December 31, 2018, the associated shareholder countries collectively accounted for 8.18% of the nominal value of our paid-in capital. Our full member shareholder countries and our associated shareholder countries are collectively referred to as our shareholder countries. 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, 2018.

We commenced operations in 1970. Our headquarters are in Caracas, and 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.

We raise funds to finance 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.

2

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 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. We may also enjoy immunities and privileges under the laws of countries other than the full member shareholder countries and associated shareholder countries by virtue of our status as an international treaty organization or the identity of our shareholders.

The governments of some of our 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.

3

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, 2019 and does not give effect to any transaction since that date.

	At March 31, 2019
	(in USD millions)
Total Liabilities(1)		28,758.0
Stockholders’ equity
Capital
Paid-in capital (authorized capital USD 15.0 billion)(2)		5,201.5
Additional paid-in capital		3,659.0
Total capital		8,860.5
Reserves
Mandatory reserve pursuant to Article N° 42 of the Constitutive Agreement		515.6
General reserve		2,585.9
Total reserves		3,101.5
Retained earnings		136.7
Total stockholders’ equity		12,098.7
Total liabilities and stockholders’ equity		40,856.7

(1) After March 31, 2019, there have been issuances of bonds as described in Supplementary Information (Unaudited) as of March 31, 2019 on page S-22.

(2) Our authorized capital also included callable capital of USD 5.0 billion at March 31, 2019.

4

CAPITAL STRUCTURE

General

As of March 31, 2019, our total authorized capital is USD 15.0 billion, of which USD 10.0 billion is ordinary capital shares and USD 5.0 billion is callable capital shares.

In November 2015, the Board of Directors approved a new general paid-in capital increase for a total amount of USD 4.5 billion, of which USD 4.0 billion is available for Series “A” and “B” stockholders and USD 500 million is available in respect of such capital contributions for Series “C” stockholders. Throughout 2016 and 2017, our management signed subscription agreements with various stockholders. Capital contributions related to this increase began in 2017 and are expected to be paid during the period ending in 2025.

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 (as defined below). 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 approximately 0.05% 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 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 additional 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 eight associated shareholder countries: Barbados, Chile, Costa Rica, Dominican Republic, Jamaica, Mexico, Portugal and Spain. We make Series “C” shares available for subscription by countries that are not full member shareholder countries to strengthen relationships between these countries and the full member shareholder countries. Ownership of Series “C” shares in these countries makes these countries eligible to receive loans from us. 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.

The Constitutive Agreement (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) includes a formal purpose of supporting sustainable development and economic integration within all of Latin America and the Caribbean, as opposed to within only the Andean region. Consequently, on 17 March 2009, our Extraordinary Shareholders’ Meeting approved the terms and conditions precedent by which Argentina, Brazil, Panama, Paraguay, Trinidad and Tobago and Uruguay could become contracting parties to the Constitutive Agreement, could become full member shareholder

5

countries and could come to 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 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, Trinidad and Tobago 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.

Note: All figures as of March 31, 2019 that refer to “full member shareholder countries” include only the Republic of Argentina, the Plurinational State of Bolivia, the Republics of Colombia, Ecuador, Panama, Paraguay, Peru, and Trinidad and Tobago, the Federative Republic of Brazil, the Oriental Republic of Uruguay, and the Bolivarian Republic of Venezuela. All figures as of March 31, 2019 that refer to “associated shareholder countries” encompass all other shareholder countries. References to “shareholder countries” include both the full member shareholder countries and the associated shareholder countries.

Paid-in Capital and Unpaid Capital

At March 31, 2019, our subscribed paid-in and unpaid capital (excluding callable capital) was USD 6.5 billion, of which USD 5.2 billion was paid-in capital and USD 1.3 billion was unpaid capital. The unpaid capital 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 Series “B” and Series “C” share purchased and the nominal USD 5,000 per share value established by our by-laws. The premium component of valor patrimonial is determined at the beginning of each subscription and applies to all payments under that subscription.

Information regarding recent capital subscriptions and annual capital contributions made by shareholder countries as of March 31, 2019 is as follows:

Argentina

In March 2012, Argentina subscribed to an additional USD 228.6 million in Series “B” shares, to be paid in four installments. The final installment was paid in 2016.

In March 2016, Argentina subscribed to an additional USD 572.0 million in Series “B” shares to be paid in seven installments, of which it paid USD 41.7 million in 2017 and USD 88.4 million in September 2018.

Barbados

In September 2014, Barbados entered into an agreement to subscribe to Series “C” shares for a total capital contribution of USD 50.0 million, to be paid in two installments. The final installment was paid in 2016.

Bolivia

In 2009, Bolivia subscribed to an additional USD 105.0 million in Series “B” shares, to be paid in eight installments. The final installment was paid in 2017.

In January 2012, Bolivia subscribed to an additional USD 91.5 million in Series “B” shares, to be paid in four installments. The final installment was paid in 2016.

6

In March 2016, Bolivia subscribed to an additional USD 190.0 million in Series “B” shares to be paid in six installments, of which it paid USD 17.2 million in 2017 and USD 34.6 million in September 2018.

Brazil

In 2009, Brazil subscribed to an additional USD 190.0 million in Series “C” shares to be paid in seven installments. The final installment was paid in 2017.

In September 2012, Brazil subscribed to an additional USD 228.6 million in Series “B” shares, to be paid in four installments. The final installment was paid in 2016.

In July 2017, Brazil subscribed to an additional USD 572.0 million in Series “B” shares, to be paid in eight installments, of which it paid USD 20.1 million in 2018.

Colombia

In June 2012, Colombia subscribed to an additional USD 210.0 million in Series “B” shares to be paid in three installments. The final installment was paid in 2018.

In August 2012, Colombia subscribed to an additional USD 228.6 million in Series “B” shares. The final installment was paid in 2017.

In July 2016, Colombia subscribed to an additional USD 572.0 million in Series “B” shares, to be paid in eight installments, of which it paid USD 5.0 million in 2017, USD 5.0 million in 2018 and USD 93.7 million in February 2019.

Dominican Republic

In 2009, the Dominican Republic subscribed to an additional USD 17.0 million in Series “C” shares. The final installment was paid in 2017.

In February 2016, the Dominican Republic subscribed to an additional USD 50.0 million in Series “C” shares, to be paid in four installments, of which it paid USD 12.5 million in 2017 and USD 12.5 million in April 2018.

Ecuador

In 2009, Ecuador subscribed to an additional USD 105.0 million in Series “B” shares to be paid in eight installments. The final installment was paid in 2017.

In March 2012, Ecuador subscribed to an additional USD 91.5 million in Series “B” shares, to be paid in four annual installments. The final installment was paid in 2016.

In June 2016, Ecuador subscribed to an additional USD 190.0 million in Series “B” shares, to be paid in six installments, of which it paid USD 17.2 million in 2017 and USD 34.6 million in September 2018.

Mexico

In February 2017, Mexico subscribed to an additional USD 51.3 million in Series “C” shares, which it paid in full in 2017.

7

Panama

In 2009, Panama subscribed to an additional USD 55.0 million in Series “C” shares to be paid in seven installments. The final installment was paid in 2017.

In February 2012, Panama subscribed to an additional USD 91.5 million in Series “B” shares, to be paid in five installments. The final installment was paid in 2017.

In February 2016, Panama subscribed to an additional USD 190.0 million in Series “B” shares, to be paid in six installments beginning in 2017, of which it paid USD 17.2 million in 2017 and USD 34.6 million in May 2018.

Paraguay

In 2009, Paraguay subscribed to an additional USD 55.0 million in Series “C” shares to be paid in seven installments. The final installment was paid in 2017.

In May 2012, Paraguay subscribed to an additional USD 91.5 million in Series “B” shares, to be paid in five installments. The final installment was paid in 2017.

In March 2016, Paraguay subscribed to an additional USD 190.0 million in Series “B” shares, to be paid in six installments, of which it paid USD 17.2 million in 2017 and USD 34.6 million in September 2018.

Peru

In 2009, Peru subscribed to an additional USD 380.0 million in Series “B” shares to be paid in eight installments, although this schedule was later modified to seven installments. The final installment was paid in 2016.

In March 2012, Peru subscribed to an additional USD 228.6 million in Series “B” shares, to be paid in four installments. The final installment was paid in full in 2016.

In March 2016, Peru subscribed to an additional USD 572.0 million in Series “B” shares, to be paid in eight installments, of which it paid USD 35.0 million in 2017 and USD 76.7 million in September 2018.

Portugal

In 2017, Portugal subscribed to USD 6.4 million in Series “C” shares to be paid in three equal installments ending in 2019, of which it paid USD 4.3 million in January 2018.

Spain

In 2017, Spain subscribed to an additional USD 173.2 million of paid-in capital to be paid in five installments, of which it paid USD 52.5 million in 2017 and USD 36.8 million in May 2018.

Trinidad and Tobago

In June 2016, Trinidad and Tobago subscribed to USD 36.0 million in callable capital.

In September 2016, upon completion of all requirements to become a full member shareholder country, Trinidad and Tobago acquired a USD 1.2 million Series “A” share and exchanged all of its Series “C” ordinary and callable capital shares for Series “B” share equivalents.

8

In December 2018, Trinidad and Tobago subscribed to an additional USD 190.0 million of paid-in capital to be paid in eight installments, of which it paid USD 5.0 million in February 2019.

Uruguay

In 2009, Uruguay subscribed to an additional USD 55.0 million in Series “C” shares to be paid in seven annual installments. The final installment was paid in 2017.

In February 2012, Uruguay subscribed to an additional USD 91.5 million in Series “B” shares, to be paid in four installments. The final installment was paid in 2016.

In March 2016, Uruguay subscribed to an additional USD 190.0 million in Series “B” shares, to be paid in six installments of which it paid USD 17.2 million in 2017 and USD 34.6 million in September 2018.

Venezuela

In 2009, Venezuela subscribed to an additional USD 380.0 million in Series “B” shares to be paid in eight installments. In December 2016, the agreement was amended to provide for payment in nine installments. Venezuela has paid a total of USD 268.2 million as of September 30, 2017. In March 2018, the agreement was amended to provide for payment in three installments, with the final installment scheduled to be paid in 2020. As of the date of this prospectus, USD 20.0 million to be paid under the agreement, as amended in March 2018, is past due.

In August 2012, Venezuela subscribed to an additional USD 228.6 million in Series “B” shares, to be paid in four installments. The final installment was paid in full in 2016.

In March 2016 and May 2016, Venezuela subscribed to an additional USD 572.0 million in Series “B” shares. In March 2018, the agreement was amended to provide for payment in eight installments, with the final installment scheduled to be paid in 2025. As of the date of this prospectus, USD 5.1 million to be paid under the agreement, as amended in March 2018, is past due.

9

The following table sets out the nominal value of our subscribed paid-in capital and unpaid capital as of March 31, 2019:

Shareholders	Paid-in Capital		Unpaid Capital
	(in USD 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		—
Trinidad & Tobago		1,200		—
Uruguay		1,200		—
Venezuela		1,200		—
Series “B” Shares:
Argentina		502,020		155,600
Bolivia		275,290		48,680
Brazil		446,350		194,365
Colombia		917,105		164,900
Ecuador		276,895		48,680
Panama		152,455		48,680
Paraguay		150,055		48,680
Peru		922,085		162,090
Trinidad & Tobago		119,050		65,140
Uruguay		158,620		48,680
Venezuela		843,390		240,780
Commercial Banks		2,485		—
Series “C” Shares:
Barbados		17,610		—
Chile		27,705		—
Costa Rica		16,455		—
Dominican Republic		43,975		8,805
Jamaica		910		—
Mexico		76,835		—
Portugal		8,850		750
Spain		230,125		29,570
Total		5,201,465		1,265,400

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. The mandatory reserve is an accounting reserve. 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.

At March 31, 2019, our reserves totaled USD 3.1 billion. At that date, the mandatory reserve pursuant to Article N° 42 of the Constitutive Agreement amounted to USD 0.5 billion, or 6.4% of subscribed paid-in and unpaid capital, and the general reserve amounted to USD 2.6 billion.

10

Callable Capital

In addition to our subscribed paid-in and unpaid capital, our shareholders have subscribed to callable capital totaling USD 1.6 billion at March 31, 2019. Our callable capital may be called by the Board of Directors to meet our financial 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 in this prospectus.

The Constitutive Agreement provides that the obligation of shareholders to pay for the shares of callable capital, upon demand by the Board of Directors, continues until such callable capital is paid in full. Thus, we consider the obligations of shareholder countries to pay for their respective callable capital subscriptions to be binding obligations backed by the full faith and credit of the respective governments. If the callable capital were to be called, the Constitutive Agreement requires that the call be prorated among shareholders in proportion to their shareholdings.

11

SELECTED FINANCIAL INFORMATION

The following selected financial information as of and for the years ended December 31, 2018, 2017 and 2016 has been derived from our audited financial statements for those periods, which begin on page F-4 of this document. 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, 2019 and 2018 has been derived from our unaudited condensed interim financial information (included on page S-1 of this prospectus) 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, 2019 are not necessarily indicative of results to be expected for the full year 2019. 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” in this prospectus.

	Year Ended December 31,							Three Months Ended March 31,
	2018		2017		2016			2019			2018
	(in USD thousands, except ratios)
Statements of Comprehensive Income
Interest income		1,310,174		1,002,025		813,460			431,442			276,108
Interest expense		831,155		621,587		471,047			259,398			179,532
Net interest income		479,019		380,438		342,413			172,044			95,576
Provision (credit) for loan losses		13,192		69,902		38,270			(1,370	)		9,286
Net interest income after provision for loan losses		465,827		310,536		304,143			173,414			87,290
Non-interest income		29,892		15,958		51,601			2,548			2,227
Non-interest expenses		184,816		162,332		151,577			40,806			38,345
Income before unrealized changes in fair value related to financial instruments and Contributions to Stockholders’ Special Funds		310,903		164,162		204,167			135,156			51,172
Unrealized changes in fair value related to other financial instruments		504		4,301		(13,449	)		1,569			1,296
Income before Contributions to Stockholders’ Special Funds		311,407		168,463		190,718			136,725			52,468
Contributions to Stockholders’ Special Funds(1)		87,830		92,064		68,000			70			2,593
Net income		223,577		76,399		122,718			136,655			49,875
Balance Sheet Data (end of period)
Total assets		40,014,247		38,111,566		35,668,988			40,856,751			37,665,729
Total liabilities		28,150,847		26,989,830		25,195,344			28,758,020			26,388,953
Total stockholders’ equity		11,863,400		11,121,736		10,473,644			12,098,731			11,276,776
Total liabilities and stockholders’ equity		40,014,247		38,111,566		35,668,988			40,856,751			37,665,729
Loan Portfolio and Equity Investments
Loans before allowance for loan losses and loan commissions, net of origination cost		25,111,387		23,628,073		21,977,081			24,607,700			23,156,974
Allowance for loan losses		64,848		67,225		63,749			64,877			65,350
Equity investments		459,667		433,025		386,051			458,679			439,195

12

	Year Ended December 31,									Three Months Ended March 31,
	2018			2017			2016			2019			2018
	(in USD thousands, except ratios)
Selected Financial Ratios
Return on average total stockholders’ equity(2)		2.7	%		1.5	%		2.0	%		4.5	%		1.8	%
Return on average paid-in capital(3)		6.1	%		3.4	%		4.4	%		10.4	%		4.1	%
Return on average assets(4)		0.8	%		0.4	%		0.6	%		1.3	%		0.5	%
Administrative expenses divided by average total assets		0.4	%		0.4	%		0.4	%		0.3	%		0.4	%
Overdue loan principal as a percentage of loan portfolio (excluding non-accrual loans)		0.5	%		0.4	%		0.0	%		0.7	%		0.1	%
Non-accrual loans as a percentage of loan portfolio		0.5	%		0.6	%		0.6	%		0.5	%		0.5	%
Allowance for loan losses as a percentage of loan portfolio		0.3	%		0.3	%		0.3	%		0.3	%		0.3	%

(1) In March 2014, at the Stockholders’ Meeting the stockholders agreed, effective 2015, to approve each year the maximum amount that management is authorized to contribute to Stockholders’ Special Funds during the fiscal year and to recognize these contributions as expenses. For more information see Note 24 (“Special Funds and Other Funds Under Management”) to our audited financial statements in this prospectus.

(2) Income before unrealized changes in fair value related to financial instruments and Contributions to Stockholders’ Special Funds divided by annual average total stockholders’ equity. Annual average total stockholders’ equity is computed as the arithmetic average of total stockholders’ equity as of the beginning and the end of each period. Data for interim periods has been annualized.

(3) Income before unrealized changes in fair value related to financial instruments and Contributions to Stockholders’ Special Funds divided by annual average subscribed and paid-in capital. Annual average subscribed and paid-in capital is computed as the arithmetic average of subscribed and paid-in capital as of the beginning and the end of each period. Data for interim periods has been annualized.

(4) Income before unrealized changes in fair value related to financial instruments and Contributions to Stockholders’ Special Funds divided by annual average total assets. Annual average total assets is computed as the arithmetic average of total assets as of the beginning and the end of each period. Data for interim periods has been annualized.

13

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-6 of this prospectus and the unaudited condensed interim financial information as of March 31, 2019 and December 31, 2018 and for the three-month periods ended March 31, 2019 and 2018 and the notes thereto beginning on page S-1.

Market Overview and Portfolio Trends

In recent months, important global economic developments have occurred, including (i) volatility in oil prices that could be reversed due in part to the sanctions against Venezuela and Iran and OPEC production cuts, (ii) low growth and increasing inflation in Latin America, (iii) potential trade disputes between the United States and China and (iv) an increase in the volatility of short-term interest rates in the United States.

While the volatility in oil prices and some of the other global economic developments mentioned above have not adversely affected our results of operations, certain of these recent global developments could negatively affect our borrowers, which may result in a downward adjustment of the external risk rating of some of our sovereign borrowers and a corresponding increase in our allowance for loan losses, according to the methodology described in “— Income Statement — Provision for Loan Losses” below.

Both 2018 and 2017 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. These two main drivers have led our loan portfolio to grow 6.3% in 2018 and 7.54% in 2017. During the three-month period ended March 31, 2019, the loan portfolio decreased by 2.0%. This is in line with our pattern of loan disbursements and portfolio growth. The portfolio usually grows modestly or not at all during the first quarters of each year and then increases significantly in the final quarters of the year.

As of March 31, 2019, our loan portfolio was distributed by country as follows: Ecuador — 14.6%, Argentina—14.5%, Venezuela — 14.3%, Colombia — 11.4%, Bolivia — 10.3%, Peru — 8.2%, Panama — 7.3%, Brazil — 7.3%, Uruguay — 4.0%, Mexico — 0.5%, Trinidad & Tobago — 2.4%, Paraguay — 1.9%, Chile — 1.6%, Dominican Republic — 0.8%, Costa Rica — 0.4%, and Barbados — 0.3%.

Notwithstanding the increasing presence of other state-sponsored development banks in the regions in which we operate, we do not expect that the growth of 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.

Recent Developments Relating to Sanctions

The Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”) administers sanctions in respect of the Government of Venezuela and certain Venezuelan-related individuals and entities, including certain Venezuelan government officials. CAF is not a U.S. Person and has not been sanctioned; however, the following discussion of the current sanctions administered by OFAC is included because Venezuela is a member country and minority shareholder of CAF.

With regard to any individual or entity who has been added to OFAC’s list of Specially Designated Nationals and Blocked Persons (“SDN List”) under Venezuela-related sanction, U.S. persons may not make to such listed persons, or receive from such listed persons, any contribution or provision of funds, goods or services. The OFAC-administered sanctions also prohibit, with certain limited exceptions, (a) transactions by a U.S.

14

person or within the United States relating to new debt with a maturity greater than 30 days or new equity, of the Government of Venezuela, bonds issued by the Government of Venezuela prior to August 25, 2017, and dividend payments or other distributions of profits to the Government of Venezuela from its controlled entities, and (b) direct or indirect purchases by a U.S. person or within the United States of securities from the Government of Venezuela (other than new debt with a maturity of 30 days or less). For purposes of these sanctions, certain amendments to outstanding debt of the Government of Venezuela, such as an extension of the maturity date, could be considered a “new debt” or other prohibited extension of credit. Unless otherwise specified in the accompanying prospectus supplement, CAF will use the net proceeds of the sale of the securities to fund its lending operations. CAF will not earmark the proceeds of particular issuances of debt securities offered hereby to fund specific loan commitments or purchase specific investments. Accordingly, CAF believes that purchasers of the debt securities offered hereby will not acquire a direct or indirect interest in our loans to Venezuela, or any other specific assets of CAF, for purposes of the OFAC sanctions.

Although Venezuela is a member country and minority shareholder of CAF and two Venezuelan nationals designated by Venezuela serve as directors on the Board of Directors of CAF, neither the Government of Venezuela nor any member of the Board of Directors (whether or not a Venezuelan national) exercises control over CAF, has any operational or management role in CAF, or has any authority to negotiate on behalf of CAF or make binding commitments on behalf of CAF.

Although we generally are not required to comply with the OFAC sanctions outlined above because we are not a U.S. person and do not operate in or from the United States, we also transact in the ordinary course with various commercial counterparties in the United States that are required to comply with the sanctions. Some of these U.S. counterparties may serve as correspondent banks or as other intermediaries with involvement in funds flows in respect of our loan operations, including our loans to the Government of Venezuela. In addition, U.S. persons may purchase our debt securities. We will continue to monitor OFAC sanctions and restrictions thereunder as applied to U.S. persons insofar as such sanctions and restrictions may have an effect on our business and operations.

The OFAC sanctions on Venezuela, and any additional sanctions that may be imposed in the future, could make it more difficult for Venezuela to service or renegotiate its outstanding debt, including its outstanding loans from CAF.

In light of the November 2017 downgrade in Venezuela’s long-term foreign ratings by Standard & Poor’s and Fitch, to selective default (“SD”) from CC and to restricted default (“RD”) from C, respectively, we increased our provisions for loan losses with respect to loans made to Venezuela to USD 28.3 million as of March 31, 2019 from the USD 19.8 million reported in September 2017.

On December 29, 2017, we granted to the Central Bank of Venezuela a credit facility in a total amount of USD 400 million. Drawings under the facility are subject to the satisfaction or waiver of certain conditions, including the absence of any overdue amounts owed to CAF by Venezuela or the Central Bank of Venezuela. As of September 30, 2018, the credit facility has been totally disbursed.

On December 14, 2018, we granted to the Central Bank of Venezuela a credit facility in a total amount of USD 500 million. Drawings under the facility are subject to the satisfaction or waiver of certain conditions, including the absence of any overdue amounts owed to CAF by Venezuela or the Central Bank of Venezuela. As of the date of this prospectus, USD 254.2 million has been disbursed under this loan agreement.

On January 10, 2019, President Nicolas Maduro was sworn in for his second term as President of Venezuela following the election held in May 2018. The National Assembly of Venezuela stated that the results of the May 2018 election were invalid and declared Juan Guaidó as Acting President of Venezuela, a declaration that the Supreme Tribunal of Justice in Venezuela declared unconstitutional. On January 23, 2019, the U.S. government recognized Mr. Guaidó as Acting President of Venezuela. On January 25, 2019, President Trump signed an

15

Executive Order amending prior economic sanctions targeting the Maduro government, and on January 28, 2019, Petroleos de Venezuela S.A. (“PDVSA”) and certain of its affiliates were designated under Executive Order 13850 and added to the SDN List. U.S. Secretary of State Pompeo has also certified the authority of Mr. Guaidó to receive and control certain property in accounts of the Government of Venezuela or Central Bank of Venezuela held by the Federal Reserve Bank of New York or any other U.S. insured banks, in accordance with Section 25B of the U.S. Federal Reserve Act. Since January 23, 2019, a number of other countries, including some countries that are CAF shareholders and a number of countries in the European Union, have recognized Mr. Guaidó as Acting President of Venezuela. CAF is evaluating the potential impact of these developments on its business and operations. CAF does not have direct lending relationships with PDVSA or its subsidiaries. The sanctions on PDVSA and its affiliates, however, may adversely affect the ability of the Maduro government to receive payment for PDVSA’s production and sale of oil and related products and may therefore adversely affect macroeconomic conditions in Venezuela. As a result, Venezuela may find it more difficult to service its outstanding debt, including its outstanding loans from CAF.

On March 22, 2019, OFAC designated the Economic and Social Development Bank of Venezuela (“BANDES”) for operating in the financial sector of the Venezuelan economy and added it to OFAC’s SDN List. As a result of that designation, all property and interests in property of BANDES, including any entity that is owned, directly or indirectly, 50 percent or more by BANDES, that are located in the United States or in the possession or control of U.S. persons, are blocked and must be reported to OFAC. BANDES is a “B” shareholder of CAF and holds approximately 8 percent of our equity. The designation of BANDES therefore does not extend to CAF. Moreover, CAF is not a U.S. person and, therefore, the current sanctions regulations do not prevent CAF from engaging in transactions or dealings with BANDES that occur outside of U.S. jurisdiction. CAF continues to maintain a control framework aimed at verifying its counterparties against OFAC’s SDN List and other applicable sanctions lists.

In addition, on April 17, 2019, OFAC designated the Central Bank of Venezuela for operating in the financial sector of the Venezuelan economy and added it to the SDN List. At the same time, OFAC issued General License 20 (GL 20), which authorizes certain transactions and activities that are for the official business of certain international organizations, including CAF. GL 20 authorizes CAF to conduct transactions and activities involving the Central Bank of Venezuela to the extent they are subject to U.S. jurisdiction and are for our official business, to the same extent as was permitted prior to the designation of the Central Bank of Venezuela and the issuance of GL 20. Accordingly, the designation of the Central Bank of Venezuela has not had a material impact on CAF or its relationship with the Central Bank of Venezuela.

On August 5, 2019, President Donald Trump signed Executive Order 13884, which blocks all property and interests in property of the Government of Venezuela that are in or come within the United States or the possession or control of a U.S. person. For purposes of the Executive Order, the term “Government of Venezuela” is defined to include, among others, any person who has acted or purported to act directly or indirectly for or on behalf of the Government of Venezuela or of any political subdivision, agency or instrumentality thereof, including the Central Bank of Venezuela. The CAF directors appointed by Venezuela as a Series “A” shareholder and by BANDES as a Series “B” shareholder may be considered to fall within the definition of “Government of Venezuela” in the Executive Order. On August 6, 2019, OFAC issued General License 20A, authorizing official activities of certain international organizations, including CAF, involving the Government of Venezuela. Accordingly, based on General License 20A, CAF does not believe the issuance of Executive Order 13884 will have a material adverse effect on CAF.

Please see “Selected Projects” below for further information regarding the most recent loans to Venezuela.

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

16

accounting policies in Note 2 (“Basis of Presentation and Significant Accounting Policies”) to our audited financial statements in this prospectus. 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, other important estimates related to the preparation of our financial statements are those related to revenue recognition and the valuation and classification at fair values of financial instruments. 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 asset or liability 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.

Statements of Comprehensive Income

Interest Income

Three Months Ended March 31, 2019 and 2018. For the three-month period ended March 31, 2019, our interest income was USD 431.4 million, representing an increase of USD 155.3 million, or 56.3%, compared to interest income of USD 276.1 million for the corresponding period in 2018. This increase resulted primarily from higher interest rates charged on loans that accrue interest based on six-month LIBOR and a spread differential and higher interest earnings on investments in our liquidity portfolio that bear interest based on LIBOR. Average market interest rates were higher in the first three months of 2019, when six-month LIBOR averaged 2.75%, than in the first three months of 2018, when six-month LIBOR averaged 2.09%.

2018, 2017 and 2016. For the year ended December 31, 2018, our interest income was USD 1,310.2 million, representing an increase of USD 308.1 million, or 30.8%, compared to interest income of USD 1,002.0 million for the year ended December 31, 2017. This increase resulted primarily from the growth of our loan portfolio, which grew 6.28%, and from higher interest rates in 2018. Average market interest rates were higher in 2018 than in 2017; in 2018, the six-month LIBOR averaged 2.49% compared with 1.48% in 2017. Interest income for the year ended December 31, 2017 was USD 1,002.0 million, representing an increase of USD 188.6 million, or 23.18%, compared to interest income of USD 813.5 million for the year ended December 31, 2016. Such increase also resulted primarily from the growth of our loan portfolio and higher interest rates compared to the corresponding period in 2016.

Interest Expense

Three Months Ended March 31, 2019 and 2018. For the three-month period ended March 31, 2019, our interest expense was USD 259.4 million, representing an increase of USD 79.9 million, or 44.5%, compared to interest expense of USD 179.5 million for the corresponding period in 2018. This increase resulted from higher funding costs due to the increase of six-month LIBOR and the spread differential. Average market interest rates were higher in the first three months of 2019, when six-month LIBOR averaged 2.75%, than in the first three months of 2018, when six-month LIBOR averaged 2.09%. The average amount of liabilities increased by 6.6% for the three-month period ended March 31, 2019, compared with the average for the three-month period ended March 31, 2018.

2018, 2017 and 2016. Interest expense for the year ended December 31, 2018 was USD 831.2 million, representing an increase of USD 209.6 million, or 33.7%, from our interest expense of USD 621.6 million for the

17

year ended December 31, 2017. This increase resulted primarily from higher funding requirements related to a 6.3% growth in our loan portfolio during 2018 and an increase in funding costs associated with an increase in six-month LIBOR. The average amount of our liabilities increased by 5.7% for the year ended December 31, 2018, compared with the average for the year ended December 31, 2017. Average market interest rates were higher in 2018 than in 2017; in 2018, the six-month LIBOR averaged 2.49% compared with 1.48% in 2017. For the year ended December 31, 2017, our interest expense was USD 621.6 million, representing an increase of USD 150.5 million, or 32.0%, from our interest expense of USD 471.0 million for the year ended December 31, 2016. This increase resulted primarily from higher funding requirements related to the growth in the average levels of our loan portfolio in 2017 and the increase in average market interest rates described above. The average amount of our liabilities increased by 8.4% for the year ended December 31, 2017, compared with the average for the year ended December 31, 2016.

Net Interest Income

Three Months Ended March 31, 2019 and 2018. For the three-month period ended March 31, 2019, our net interest income was USD 172.0 million, representing an increase of USD 75.5 million, or 78.1%, compared to net interest income of USD 96.6 million for the corresponding period in 2018. This increase resulted from higher average market rates as well as an increase in interest-earning assets in comparison to financial liabilities. The net interest income margin was 1.74% for the three-month period ended March 31, 2019, as compared to 1.09% for the corresponding period in 2018.

2018, 2017 and 2016. For the year ended December 31, 2018, our net interest income was USD 479.0 million, representing an increase of USD 98.6 million, or 25.9%, over net interest income of USD 380.4 million for the year ended December 31, 2017. This increase resulted from an increase not only in the loan portfolio but also in interest rates and a reduction in the net borrowing spread on new issuances of debt securities, which were partially offset by an increase in interest expense due to higher levels of outstanding indebtedness. Our net interest income for the year ended December 31, 2017 was USD 380.4 million, representing an increase of USD 38.0 million, or 11.1%, over net interest income of USD 342.4 million for the year ended December 31, 2016. This increase resulted from higher yielding liquid assets, and the growth of our loan portfolio. Our net interest income margin was 1.36% in 2018, compared to 1.10% in 2017 and 1.10% in 2016.

Provision (Credit) for Loan Losses

The provisions in the periods described below reflect management’s estimates for both general and specific provisions. The general allowance for loan losses is estimated considering the credit risk exposure, probability of default and loss given default, which represents our anticipated loss in the event of a borrower default and which is based on external data provided by risk rating agencies, recognizing such effects in profit or loss for the period. We establish 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. Loans whose terms are modified in a troubled debt restructuring, generally, already will have been identified as impaired. Our management individually evaluates the compliance of the new terms of the restructured loan for a reasonable period to calculate specific allowances for loan losses and if the remaining balance of the restructured loan is considered collectible, the restructured loan could return to accrual status. See Notes 2g. and 2h. to our audited financial statements for further information regarding allowance for loan loss calculations.

Three Months Ended March 31, 2019 and 2018. For the three-month period ended March 31, 2019, we recorded a credit for loan losses of USD 1.4 million, compared with a provision for loan losses of USD 9.3 million for the corresponding period in 2018, as a result of the improvement of Panama’s credit rating during the three-month period in 2019.

2018, 2017 and 2016. For the year ended December 31, 2018, we recorded a provision for loan losses of USD 13.2 million, representing a decrease of USD 56.7 million, or -81.1%, compared with the provision for loan

18

losses of USD 69.9 million for 2017. This decrease was mainly due to a reduction in specific loan loss provisions and the amount of loans written off. For the year ended December 31, 2017, we recorded a provision for loan losses of USD 69.9 million, representing an increase of USD 31.6 million, or 82.7%, compared with the provision for loan losses of USD 38.2 million for 2016. This increase was mainly due to an increase in specific provisions for loan losses with respect to certain private sector loans to borrowers in Brazil, Mexico, Peru, Spain and Uruguay, and also the deterioration of the long-term foreign rating of some of our shareholder countries.

Non-Interest Income

Our non-interest income consists principally of commissions, dividends arising from equity investments not accounted for using the equity method, its 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, 2019 and 2018. For the three-month period ended March 31, 2019, our non-interest income was USD 2.5 million, representing an increase of USD 0.3 million, or 14.4%, compared to non-interest income of USD 2.2 million for the corresponding period in 2018. This increase was mainly due to higher income from other commissions which are commissions that are not related to loans.

2018, 2017 and 2016. For the year ended December 31, 2018, our total non-interest income was USD 29.9 million, representing an increase of USD 13.9 million, or 87.3%, from total non-interest income of USD 16.0 million for the previous year. This increase was mainly due to unrealized changes in the fair value related to equity investments. For the year ended December 31, 2017, our total non-interest income was USD 16.0 million, representing a decrease of USD 35.6 million, or 69.1%, from total non-interest income of USD 51.6 million for the year ended December 31, 2016. This decrease resulted principally from the non-cash currency exchange differential for borrowings denominated in Venezuelan bolivars that occurred because of the devaluation of the bolivar in 2016 but did not repeat itself in 2017, which is recognized in “Non-interest income — Other income.”

Non-Interest Expenses

Our non-interest expenses consist principally of administrative expenses, representing 85.6% and 99.1% of total non-interest expenses for the three-month periods ended March 31, 2019 and March 31, 2018, respectively.

Three Months Ended March 31, 2019 and 2018. For the three-month period ended March 31, 2019, our non-interest expenses were USD 40.8 million representing an increase of USD 2.5 million, or 6.4%, compared to total non-interest expenses of USD 38.3 million for the corresponding period in 2018. The increase resulted principally from an increase in equity in losses of investees, unrealized changes in fair value related to equity investments and other expenses.

For the three-month period ended March 31, 2019, our administrative expenses were USD 34.9 million, or 0.4% (on an annualized basis) of its total average assets, representing a decrease of USD 3.1 million, or 8.1%, compared to administrative expenses of USD 38.0 million for the corresponding period in 2018.

2018, 2017 and 2016. For the year ended December 31, 2018, our total non-interest expenses were USD 184.8 million, representing an increase of USD 22.5 million, or 13.9%, over total non-interest expenses of USD 162.3 million for the year ended December 31, 2017. For the year ended December 31, 2017, our total non-interest expenses were USD 162.3 million, representing an increase of USD 10.8 million, or 7.1%, over total non-interest expenses of USD 151.6 million for the year ended December 31, 2016.

For the year ended December 31, 2018, administrative expenses were USD 158.3 million, or 0.4% of our average total assets, representing an increase of USD 8.2 million over administrative expenses of USD 150.1 million for the year ended December 31, 2017. The increase resulted principally from the growth in our business. For the year ended December 31, 2017, administrative expenses were USD 150.1 million, or 0.4% of

19

our average total assets, representing an increase of USD 9.2 million over administrative expenses of USD 141.0 million for the year ended December 31, 2016. The increase resulted principally from the growth in our business.

As of December 31, 2017 and 2016, equity investments in which our participation is less than 20% of the investee’s equity, and that have no readily determinable fair value, are measured at cost less impairment according to U.S. GAAP. During the year ended December 31, 2018, we prospectively adopted the policy of subsequent measurement for these investments in equity securities without readily determinable fair value, as follows: (i) direct investments in equity securities of companies, (a) previously accounted for at cost without a readily determinable fair value and (b) that do not qualify for the net asset value practical expedient to estimate fair value, are accounted for at cost minus impairment (if any), plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer; and (ii) as to equity investments in funds without readily determinable fair value, previously accounted for at cost, we have applied the net asset value practical expedient to estimate fair value. The dividends received from equity investments accounted for at fair value (2018) and cost (2017) are recognized as income. Also, until 2017 management was required to assess the value of these investments at least annually and determine whether any value impairment was temporary or other than temporary. Impairment charges had to be taken once management determined that the loss of value was other than temporary. As a result of its analysis of these equity investments, we recognized impairment charges on our equity investments of USD 22.0 million in 2018, USD 11.0 million in 2017 and USD 9.20 million in 2016.

Net Income

Three Months Ended March 31, 2019 and 2018. For the three-month period ended March 31, 2019, our net income was USD 136.7 million, representing an increase of USD 86.8 million, or 174.0%, compared to net income of USD 49.9 million for the corresponding period in 2018. This increase is mainly due to an increase in interest income as a result of higher average market rates that generated higher income in our loan portfolio and investment portfolio as well as a credit in loan losses when compared with the corresponding period in 2018.

Income before unrealized changes in fair value related to financial instruments and contributions to Stockholders’ Special Funds for the three-month period ended March 31, 2019 was USD 135.2 million, representing an increase of USD 84.0 million, or 164.1%, compared to income before unrealized changes in fair value related to financial instruments and contributions to Stockholders’ Special Funds of USD 51.2 million for the corresponding period in 2018. This increase is mainly due to the increase in interest income due to higher average market rates and the credit to the allowance for loan losses compared with a provision in the earlier period.

2018, 2017 and 2016. In March 2014, the Stockholders’ Assembly agreed, effective 2015, to approve a maximum amount to be contributed to Stockholders’ Special Funds during the fiscal year and to recognize these contributions as expenses. In 2018, we recognized USD 87.8 million as a contribution to Stockholders’ Special Funds, resulting in net income of USD 223.6 million, representing an increase of USD 147.2 million, or 192.6%, compared to net income of USD 76.74 million for 2017. This increase resulted primarily from an increase in interest income as a result of higher average market rates that generated higher income in our loan portfolio and investment portfolio and a reduction in loan loss provisions in comparison with the previous corresponding period. In 2017, we recognized USD 92.1 million as a contribution to Stockholders’ Special Funds, resulting in net income of USD 76.4 million, representing a decrease of USD 46.3 million, or 37.7%, compared to net income of USD 122.7 million for 2016. For more information see Note 24 (“Special Funds and Other Funds Under Management”) to our audited financial statements in this prospectus.

Income before unrealized changes in fair value related to financial instruments and contributions to Stockholders’ Special Funds for the year ended December 31, 2018 was USD 310.9 million, representing an increase of USD 146.7 million, or 89.4%, compared to income before unrealized changes in fair value related to financial instruments and contributions to Stockholders’ Special Funds of USD 164.2 million for 2017. This

20

increase is mainly due to the increase in non-interest income, increase in interest income and a decrease in loan loss provisions. Income before unrealized changes in fair value related to financial instruments and contributions to Stockholders’ Special Funds for the year ended December 31, 2017 was USD 164.2 million, representing a decrease of USD 40.0 million, or 19.6%, compared to income before unrealized changes in fair value related to financial instruments and contributions to Stockholders’ Special Funds of USD 204.2 million for 2016. This decrease is mainly due to a decrease in non-interest income as a result of an increase in other income relating to the non-cash currency exchange differential due to the devaluation of the Venezuelan bolivar that occurred in 2016 but did not repeat itself in 2017.

Balance Sheet

Assets

March 31, 2019. At March 31, 2019, our total assets were USD 40.9 billion, representing an increase of USD 0.9 billion, or 2.3%, over total assets of USD 40.0 billion at December 31, 2018. The increase in assets resulted primarily from an increase in liquid assets, specifically deposits with banks, marketable securities and other investments that grew 17%, 7% and 35%, respectively, when compared with December 31, 2018 figures.

2018 and 2017. At December 31, 2018, our total assets were USD 40.0 billion, representing an increase of USD 1.9 billion, or 5.0%, over total assets of USD 38.1 billion at December 31, 2017. The increase in our total assets was principally due to the growth of our loan portfolio, which increased by USD 1.5 billion when compared with December 31, 2017 figures.

Liabilities

March 31, 2019. At March 31, 2019, our total liabilities were USD 28.8 billion, representing an increase of USD 0.6 billion or 2.2%, over total liabilities of USD 28.2 billion at December 31, 2018. The increase in liabilities resulted primarily from an increase in the outstanding amount of bonds, which grew by 9.6% compared with December 31, 2018 figures.

2018 and 2017. At December 31, 2018, our total liabilities were USD 28.2 billion, representing an increase of USD 1.2 billion, or 4.3%, over total liabilities of USD 27.0 billion at December 31, 2017. The increase in our total liabilities resulted principally from increased bond issuances.

Stockholders’ Equity

March 31, 2019. At March 31, 2019, our total stockholders’ equity was USD 12.1 billion, representing an increase of USD 0.2 billion, or 2.0%, over total stockholders’ equity of USD 11.9 billion at December 31, 2018. The increase in our stockholders’ equity resulted primarily from capital contributions paid by our stockholders of USD 98.7 million and an increase in total reserves of USD 223.6 million.

2018 and 2017. At December 31, 2018, our total stockholders’ equity was USD 11.9 billion, representing an increase of USD 741.7 million, or 6.7%, over total stockholders’ equity of USD 11.1 billion at December 31, 2017. The increase in our total stockholders’ equity resulted principally from the capital contributions paid by our stockholders of USD 518.1 million and an increase in total reserves of USD 76.4 million.

Asset Quality

Overdue Loans

March 31, 2019. At March 31, 2019, the total principal amount of outstanding overdue loans was USD 175.4 million (not including non-accrual loans in overdue status) related solely to sovereign loans to Venezuela, representing an increase of USD 51.1 million over overdue loans of USD 124.3 million at December 31, 2018.

21

At March 31, 2019, the total outstanding overdue amounts from sovereign loans to Venezuela was USD 249.8 million, including USD 175.4 million of principal and USD 74.4 million that includes interest, penalty interest and commissions. Those amounts were originally due between December 7, 2018 and February 25, 2019. Those amounts were received in full in April 2019. As of March 31, 2019, the total principal amount of outstanding loans to Venezuela was USD 3.5 billion.

2018 and 2017. At December 31, 2018, the total principal amount of outstanding overdue loans was USD 124.3 million (not including non-accrual loans in overdue status), representing solely overdue amounts from sovereign loans to Venezuela. At December 31, 2018, Venezuela also had outstanding interest and penalty interest totaling approximately USD 58.5 million relating to the total loans, reaching a total overdue amount of principal and interest of USD 182.8 million. During January 2019, we received payments for USD 6.1 million related to this overdue interest. As of December 31, 2018, the total principal amount of outstanding loans to Venezuela was USD 3.5 billion.

At December 31, 2017, the total principal amount of outstanding overdue loans was USD 94.2 million (not including non-accrual loans in overdue status).

Impaired Loans and Non-accrual Loans

March 31, 2019. At March 31, 2019, the total principal amount of our impaired loans was USD 111.3 million, or 0.5% of the total loan portfolio, and was related to private sector borrowers, representing a decrease of USD 1.4 million over impaired loans of USD 112.7 million at December 31, 2018. We consider a loan to be impaired when it is in non-accrual status.

2018 and 2017. At December 31, 2018, the total principal amount of our impaired loans was USD 112.7 million, or 0.45% of the total loan portfolio, and was related to private sector borrowers. We consider a loan to be impaired when it is in non-accrual status. At December 31, 2017, the total principal amount of our impaired loans was USD 138.7 million, or 0.59% of the total loan portfolio.

Restructured Loans

March 31, 2019. At March 31, 2019, the total principal amount of outstanding restructured loans was USD 0.0 million, or 0.0% of the total loan portfolio, representing no change in comparison to December 31, 2018.

2018 and 2017. At December 31, 2018, the total principal amount of outstanding restructured loans was USD 0.0 million, or 0.0% of the total loan portfolio. At December 31, 2017, the total principal amount of outstanding restructured loans was USD 44.2 million, or 0.2% of the total loan portfolio. A total of USD 44.2 million was written-off during the year 2017.

Loan Write-offs and Recoveries

March 31, 2019. There were USD 0.0 million of loans written-off during the three-month period ended March 31, 2019. We booked recoveries of USD 1.4 million during the three-month period ended March 31, 2019. For the three-month period ended March 31, 2018, there were USD 12.0 million of loans written-off, and we booked recoveries of USD 0.8 million.

2018 and 2017. There were USD 22.0 million of loans written off in 2018, which related to private sector borrowers, and USD 69.5 million of loans written-off in 2017. During 2018 and 2017, we booked recoveries against these write-offs of USD 6.4 million and USD 3.1 million, 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.

22

Liquidity

Our liquidity policy requires CAF 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, 2019. At March 31, 2019, our liquid assets consisted of USD 14.5 billion of cash, deposits with banks, marketable securities and other investments, of which 91.9% were invested in investment grade instruments rated A-/A3/A- or better by a U.S. nationally recognized statistical rating organization, compared to USD 12.5 billion of cash, deposits with banks, marketable securities and other investments, of which 97.0% were invested in investment grade instruments rated A-/A3/A- or better by a U.S. nationally recognized statistical rating organization, at March 31, 2018. At March 31, 2019, 21.0% of our liquid assets were invested in time deposits in financial institutions, 25.3% in commercial paper, 12.8% in corporate and financial institution bonds, 14.0% in certificates of deposit, 13.0% in U.S. Treasury Notes and 13.9% in other instruments, including deposits in cash.

As of March 31, 2019, our liquid assets was distributed by country as follows: United States — 29.9%, France — 7.0%, Japan — 7.7%, Chile — 3.0%, Switzerland — 4.9%, South Korea — 4.9%, United Kingdom — 2.8%, Germany — 4.6%, Singapore — 4.6%, China — 3.6%, Belgium — 2.6%, Supranationals — 2.6%, Canada — 1.8%, United Arab Emirates — 2.5%, Qatar — 2.4%, Australia — 4.5%, Spain — 1.61%, Ireland —0.95%, Kuwait — 1.2%, Luxembourg — 2.3%, Sweden — 1.1%, Netherlands — 0.6% and others — 3.0%.

2018 and 2017. At December 31, 2018, our liquid assets consisted of USD 13.0 billion of cash, deposits with banks, marketable securities and other investments, of which 91.5% were invested in investment grade instruments rated A-/A3/A- or better by a U.S. nationally-recognized statistical rating organization; 25.0% of our liquid assets were invested in time deposits in financial institutions, 25.9% in commercial paper, 14.2% in corporate and financial institution bonds, 13.1% in certificates of deposit, 13.8% in U.S. Treasury Notes and 8.0% in other instruments, including deposits in cash. At December 31, 2017, our liquid assets consisted of USD 12.7 billion of cash, deposits with banks, marketable securities and other investments, of which 90.6% were invested in investment grade instruments rated A-/A3/A- or better by a U.S. nationally-recognized statistical rating organization; 24.7% of our liquid assets were invested in time deposits in financial institutions, 31.6% in commercial paper, 13.8% in corporate and financial institution bonds, 12.1% in certificates of deposit, 11.7% in U.S. Treasury Notes and 6.0% in other instruments, including deposits in cash.

As of December 31, 2018, our liquid assets were distributed by country as follows: United States — 22.9%, Japan — 8.3%, France — 7.6%, China — 3.9%, Australia — 2.8%, Canada — 2.7%, Switzerland — 4.7%, South Korea — 5.7%, Spain — 4.6%, Chile — 2.8%, Germany — 6.8%, Netherlands — 0.7%, United Arab Emirates — 2.3%, United Kingdom —2.4%, Qatar — 1.0%, Ireland — 1.6%, Belgium — 1.0%, Supranationals — 1.4%, Kuwait — 1.4% and others — 4.94%.

23

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 22 (“Commitments and Contingencies”) to our audited financial statements in this prospectus.

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

24

OPERATIONS OF CAF

Our 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.

We also provide 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 four departments, each headed by a Vice President:

• Country Programmes, 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; and

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

The client relationship management group is also responsible for reviewing and developing lending policies and procedures and for monitoring the quality of the loan portfolio on an ongoing basis. In these duties, the client relationship management group is assisted by our Credit Administration Office and our Corporate Comptroller Office.

Financial Management

Our financial management group is responsible for managing our funded debt, as well as our liquid assets. This group is responsible for developing, structuring, appraising and implementing our borrowing activities. It is also responsible for reviewing and developing policies and procedures for the monitoring of our financial well-being and for the proper management of liquidity. The financial management group is headed by the Vice President of Finance.

25

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 institution 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 CAF 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 CAF. Under such multi-sectoral 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 CAF 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 we act as lender of record for the entire loan and sell 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 CAF. Under the “B” portion, financial institutions provide the funding and assume the credit risk; we do not provide funding under the “B” portion and, therefore, do 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 its 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.

26

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 CAF.

At December 31, 2018, our total assets were USD 40.0 billion, of which USD 25.1 billion, or 62.8%, were disbursed and outstanding loans. At December 31, 2018, the “B” loan portion of our “A/B” loan transactions totaled USD 208.8 million. 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,
	2018					2017			2016
	(in USD millions)
Public Sector		85.9	%	21,571.1			20,201.0			18,773.3
Private Sector		14.1	%	3,540.5			3,429.8			3,203.1
		100	%	25,111.6			23,630.9			21,976.4
Fair value adjustments				(0.2	)		(2.80	)		0.7
				25,111.4			23,628.1			21,977.1

27

Geographic Distribution of Loans

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,
	2018							2017							2016
	Public		Private		Total			Public		Private		Total			Public		Private		Total
	(in USD millions)
Argentina		3,476.6		101.1		3,577.7			3,113.7		94.0		3,207.7			2,716.0		124.0		2,839.9
Barbados		84.0		—		84.0			86.6		—		86.6			85.0		—		85.0
Bolivia		2,454.6		108.3		2,562.9			2,359.6		124.1		2,483.8			2,088.2		123.0		2,211.1
Brazil		1,457.9		236.6		1,694.5			1,646.3		470.1		2,116.4			1,549.1		435.0		1,984.1
Chile		—		425.0		425.0			70.0		235.0		305.0			—		111.0		111.0
Colombia		2,201.6		638.7		2,840.3			1,768.8		747.4		2,516.2			1,649.4		689.8		2,339.2
Costa Rica		78.8		10.0		88.8			77.9		12.0		89.9			98.9		14.7		113.6
Dominican Republic		180.4		26.1		206.5			202.3		49.4		251.8			169.7		42.4		212.1
Ecuador		3,411.2		175.6		3,586.8			3,245.7		191.9		3,437.6			3,104.7		213.2		3,317.9
Jamaica		—		—		—			—		—		—			—		4.5		4.5
Mexico		480.0		50.0		530.0			305.0		—		305.0			355.0		26.7		381.7
Panama		1,298.6		601.7		1,900.4			1,022.7		480.3		1,503.0			893.6		570.7		1,464.3
Paraguay		387.9		78.3		466.2			329.4		89.3		418.7			261.2		75.9		337.1
Peru		1,031.0		1,008.7		2,039.7			1,429.1		850.5		2,279.6			1,667.4		607.1		2,274.5
Spain		—		—		—			—		—		—			—		44.2		44.2
Trinidad & Tobago		600.0		—		600.0			300.0		—		300.0			—		—		—
Uruguay		914.5		80.2		994.7			958.4		85.8		1,044.2			814.3		121.0		935.3
Venezuela		3,514.1		—		3,514.1			3,285.5		—		3,285.5			3,320.8		—		3,320.8
		21,571.1		3,540.5		25,111.6			20,201.0		3,429.8		23,630.9			18,773.3		3,203.1		21,976.4
Fair value adjustments						(0.2	)						(2.80	)						0.7
Total						25,111.4							23,628.1							21,977.1

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.

28

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)
	2018		2017		2016		2018		2017		2016
	(in USD millions)						(in USD millions)
Argentina		1,626.3		996.3		705.5		1,014.0		1,011.9		485.9
Bolivia		531.6		489.4		563.8		381.1		536.3		407.2
Brazil		1,475.6		1,253.0		1,370.6		620.9		2,535.7		1,725.9
Colombia		1,544.0		1,791.5		2,076.6		2,855.2		1,637.9		1,514.9
Ecuador		754.2		754.6		766.3		706.2		549.9		711.4
Panama		693.9		649.6		595.4		498.0		265.5		223.3
Paraguay		476.1		496.7		547.5		117.2		151.8		82.3
Peru		2,551.4		2,306.1		2,138.6		1,613.9		1,687.8		1,039.2
Trinidad & Tobago		300.2		0		300.1		300.2		300.0		0.0
Uruguay		890.3		660.6		958.5		112.4		186.8		325.0
Venezuela		600.3		500.5		541.2		528.6		129.8		524.9
Others(2)		2,219.3		2,361.2		1,848.2		1,729.3		1,218.1		1,385.6
Total		13,663.3		12,259.4		12,412.3		10,477.1		10,211.5		8,425.5

(1) Includes short-term loans in the amounts of USD 6,546.2 million, USD 6,653.3 million and USD 4,909.5 million and for the years ended December 31, 2018, 2017 and 2016, respectively.

(2) Loans outside the full member shareholder countries for the years ended December 31, 2018, 2017 and 2016.

As of December 31, 2018, the increase (decrease) of our loan portfolio by country compared to the year ended December 31, 2017 was as follows: Argentina, 11.5%; Bolivia, 3.2%; Brazil, (19.9)%; Colombia, 12.9%; Ecuador, 4.3%; Panama, 26.4%; Paraguay, 11.4%; Peru, (10.5)%; Uruguay, (4.7)%; and Venezuela, 7.0%. The growth of the loan portfolio reflects loan approvals as a result of higher demand from shareholder countries 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 USD 1,334.3 million in 2018, compared to loans to associated shareholder countries holding Series “C” shares totaling USD 1,038.3 million and USD 952.1 million in 2017 and 2016, respectively.

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.

29

Distribution of Loans by Industry

At December 31, 2018, our loan portfolio outstanding was distributed by country and industry as follows:

	Argentina		Bolivia		Brazil		Colombia		Ecuador		Panama		Paraguay		Peru		Uruguay		Venezuela		Others(2)		Total by Sector		% of Total
	(in USD millions)
Agriculture, hunting and forestry		102.9		12.1		36.5		0.0		0.0		0.0		0.0		0.0		0.0		0.0		0.0		151.6		0.6	%
Manufacturing industry		0.0		0.0		50.1		4.0		37.3		0.0		0.0		0.0		0.0		0.0		0.0		91.4		0.4	%
Supply of electricity, gas and water		1,464.9		628.5		231.8		232.9		891.6		434.8		130.5		622.0		785.0		2,391.2		40.1		7,853.3		31.3	%
Transport, warehousing and communications		1,041.3		1,585.3		1,042.4		392.4		852.7		847.8		205.5		622.9		193.7		318.5		185.4		7,288.0		29.0	%
Financial intermediaries(1)		20.0		87.7		194.7		771.6		117.7		108.8		60.0		669.6		0.0		0.0		1,111.2		3,141.3		12.5	%
Social and other infrastructure programs		939.6		248.0		55.4		1,439.5		1,668.8		316.1		70.2		125.2		0.0		804.3		806.6		6,473.6		25.8	%
Other activities		9.1		1.1		83.5		0.0		18.7		0.0		0.0		0.0		0.0		0.0		0.0		226.41		0.9	%
Total		3,577.7		2,562.9		1,694.5		2,840.3		3,586.8		1,707.4		466.2		2,039.7		978.7		3,514.1		2,143.3		25,111.6		100	%

(1) Multi-sectoral 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, 2018.

Maturity of Loans

At December 31, 2018, our outstanding loans were scheduled to mature as follows:

	2019		2020		2021		2022		2023		2024-2034
	(in USD millions)
Principal amount		5,327.0		2,638.9		2,399.5		2,416.2		2,169.9		10,160.0

30

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, 2018:

Borrower	Amount		As a Percentage of Total Loan Portfolio
	(in USD millions)
Argentine Republic		3,410.9		13.6	%
Bolivarian Republic of Venezuela		3,114.1		12.4	%
Republic of Ecuador		2,913.3		11.6	%
Plurinational State of Bolivia		2,454.6		9.8	%
Republic of Colombia		1,715.1		6.8	%
Republic of Panama		1,227.3		4.9	%
Republic of Peru		989.5		3.9	%
Republic of Trinidad and Tobago		600.0		2.4	%
State of Rio de Janeiro		428.3		1.7	%
Central Bank of Venezuela		400.0		1.6	%
		17,253.1		68.7	%

Selected Projects

Set out below are examples of projects approved by CAF during 2018 and the respective loan approval amounts. The selected projects represent a mix of our loan portfolio in the different sectors and activities in which we participate, including both public and private sector projects. They have been selected based on the relevance to each full member shareholder country and are representative of our lending activities in each such country.

Argentina

Argentine Republic/South Belgrano Railway, Phase II — USD 150.0 million loan to renovate a railway line that will improve train velocity and frequency.

Bolivia

Plurinational State of Bolivia/Program “More investment for water” Phase V — USD 77.0 million loan to continue the efforts in providing drinkable water and sanitation to the entire country.

Brazil

Sao Paulo State/Sao Paulo Metro; Line 1, Monorail system first section — USD 220.0 million loan for an urban transport project, specifically line 17 of the Metro of Sao Paulo.

Colombia

Republic of Colombia/Drinkable water and sanitation for the rural and urban areas of Buenaventura, Phase I — USD 76.0 million loan to rehabilitate and expand the aqueduct, sewage and waste treatment systems in Buenaventura.

Ecuador

District Municipality of Quito/Subway Project of Quito, Line 1 Second Financing — USD 152.0 million loan to complete the financing and construction of the Quito subway line 1 that will transport more than 400 thousand people a day.

31

Panama

Republic of Panama/National Program of investments for water and sanitation — Pronaisa — USD 200.0 million loan to improve the coverage and quality of the services that provide drinkable water to the cities of Panama and Colon as well as the sanitary and environmental conditions of the city of Chanquinola.

Paraguay

Republic of Paraguay/Maintenance and rehabilitation of the N° 9 National Road — USD 100.0 million loan for the reconstruction and maintenance of about 457 Km of the N° 9 National road and access to several localities bordering the road.

Peru

GR Taruca S.A.C/Windfarm projecto Duna — USD 10.0 million loan for a Windfarm project that will generate renewable energy in Ica.

Trinidad and Tobago

Republic of Trinidad and Tobago/Strategic support to consolidate fiscal management in the medium term — USD 300.0 million to support the design and implementation of the national budget in 2015 and 2020.

Uruguay

Development National Corporation/Road mobility Infrastructure Program for Department of Canelones — USD 20.0 million loan to support the mobility program for the rehabilitation and maintenance of road networks for the department of Canelones.

Venezuela

Bolivarian Republic of Venezuela/Support to the macroeconomic and liquidity risk of liabilities management — USD 500.0 million credit facility to provide liquidity to the Venezuelan Central Bank. Drawings under the facility are subject to certain conditions, including the absence of any overdue amounts owed to CAF by Venezuela or the Central Bank of Venezuela.

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, 2018, our liquid assets amounted to USD 13.0 billion of which 19.9% were invested in time deposits in financial institutions, 25.9% in commercial paper, 14.2% in corporate and financial institution bonds, 13.1% in certificates of deposit, 13.8% in U.S. Treasury Notes and 5.1% 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’

32

equity. At December 31, 2018, the carrying value of our equity investments totalled USD 459.7 million, representing 3.9% of our shareholders’ equity. At December 31, 2018, 82.3% 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 USD 165.3 million at December 31, 2018. Those credit guarantees represent 1.4% 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, Uruguay and Spain.

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 2018, we acted as fund administrator for several funds funded by third parties and by our shareholders, the net assets of which totaled USD 428.8 million at December 31, 2018. We have no residual interest in the net assets of the special funds.

Each year, the Stockholders’ Assembly of CAF approves a maximum amount to be contributed to Stockholders’ Special Funds during the fiscal year, which contributions are recognized as expenses.

In 2018, the Stockholders’ Assembly approved the contribution of up to a maximum amount of USD 92.0 million to some Stockholders’ Special Funds. Management was authorized to contribute to Stockholders’ Special Funds during the fiscal year 2018 and to recognize these contributions as expenses. The amount approved by the Stockholders’ Assembly in 2017 was USD 92.1 million. In 2018 and 2017, such contributions to these funds were USD 87.8 million and USD 92.1 million, respectively, and expensed as previously described. In 2016, such contribution to these funds was USD 68.0 million and accounted for as distributions from net income of 2015. These funds are not part of our accounts.

At December 31, 2018, the principal funds were the Compensatory Financing Fund, the Fund for the Development of Small and Medium Enterprise, the Technical Cooperation Fund and the Human Development Fund.

Technical Cooperation Fund

At December 31, 2018, the Technical Cooperation Fund had a balance of USD 48.2 million. The purpose of this fund is to finance research and development studies that may lead to the identification of project investment

33

opportunities and also, on occasion, to provide grants that are typically less than USD 100,000 each to facilitate the implementation of those projects.

Human Development Fund

At December 31, 2018, the Human Development Fund had a balance of USD 8.9 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, 2018, the Compensatory Financing Fund had a balance of USD 256.0 million. This fund was created to provide interest rate compensation of certain loans granted by us when a project providing social or developmental benefits is otherwise unable to sustain market interest rates. For more information, see Note 24 (“Special Funds and Other Funds Under Management”) to our audited financial statements in this prospectus.

Fund for the Development of Small and Medium Enterprises

At December 31, 2018, the Fund for the Development of Small and Medium Enterprises had a balance of USD 61.4 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.

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, 2018 was 2.2 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 USD 75.0 million for sovereign credits, (b) loans of up to USD 50.0 million for private credits, (c) investments of up to USD 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 U.S. Treasury or the Bank for International Settlements, in which case our 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 USD 1.0 million. The Executive Committee of our Board of Directors or the Board of Directors itself may approve (a) loans of up to USD 150.0 million for sovereign credits, (b) loans of up to USD 80.0 million for private credits, (c) investments of up to USD 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

34

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 USD 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 our 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, 2018, there were USD 124.3 million of loans overdue and USD 112.7 million of loans in non-accrual status. At December 31, 2017, there were USD 94.2 million of loans overdue and USD 138.7 million of loans in non-accrual status. For the years ended December 31, 2018 and 2017, there were USD 39.2 million and USD 19.2 million, respectively, of overdue interest or other charges in respect of non-accrual status loans excluded from net income.

For the year ended December 31, 2018, there were USD 22.0 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, we have never had to declare an event of default with respect to such countries’ debt obligations to CAF.

35

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,
	2018			2017			2016
	(in USD millions)
Total loan portfolio		25,111.4			23,628.1			21,977.1
Overdue loan principal		124.3			94.2			7.5
Loans in non-accrual status		112.7			138.7			120.8
Loans written off during period		22.0			69.5			33.7
Allowance for loan losses		64.8			67.2			63.7
Troubled debt restructured		—			—			44.2
Overdue principal payment as a percentage of loan portfolio (excluding non-accrual loans)		0.49	%		0.40	%		0.03	%
Non-accrual loans as a percentage of loan portfolio		0.45	%		0.59	%		0.55	%
Allowance for loan losses as a percentage of loan portfolio		0.26	%		0.28	%		0.29	%

36

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,
	2018			2017			2016
	(in USD millions)
Within the shareholder countries:
Deposits		3,210.5			2,950.1			3,098.9
Borrowings		22.9			33.3			35.5
Bonds		660.1			286.9			225.6
		3,893.6			3,270.3			3,360.0
Outside the shareholder countries:
Commercial paper		641.3			1,770.7			2,112.7
Borrowings		1,266.6			1,376.8			1,389.6
Bonds		21,586.7			19,494.2			17,847.9
		23,494.6			22,641.7			21,350.2
					25,912.0			24,710.2
Variation effect between spot and original FX rate		(878.7	)		(486.2	)		(1,363.8	)
Fair value adjustments on hedging activities		191.0			454.9			459.5
Origination costs		(19.2	)		(24.0	)		(27.5	)
Total		26,756.2			25,856.7			23,778.4

37

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,
	2018			2017			2016
	(in USD millions)
Term deposits:
Up to 1 year		3,210.5			2,950.1			3,098.9
Acceptances, advances and commercial paper and repurchase agreements:
Up to 1 year		641.3			1,770.7			2,112.7
Borrowings:
Up to 1 year		181.5			507.6			111.9
Between 1 and 3 years		547.6			324.7			698.6
Between 3 and 5 years		252.6			257.8			247.7
More than 5 years		307.8			320.0			366.8
		1,289.5			1,410.1			1,425.1
Bonds:
Up to 1 year		2,291.6			2,311.2			2,080.2
Between 1 and 3 years		7,061.4			5,262.3			4,657.3
Between 3 and 5 years		5,888.7			5,329.9			4,145.6
More than 5 years		7,080.1			6,877.6			7,190.4
		22,321.8			19,781.0			18,073.5
Totals:
Up to 1 year		6,324.9			7,539.6			7,403.7
Between 1 and 3 years		7,609.0			5,587.0			5,355.9
Between 3 and 5 years		6,141.3			5,587.7			4,393.3
More than 5 years		7,387.9			7,197.6			7,557.2
		27,463.1			25,911.9			24,710.2
Variation effect between spot and original FX rate		(878.7	)		(486.2	)		(1,363.8	)
Fair value adjustments on hedging activities		191.0			454.9			459.5
Originating costs		(19.2	)		(24.0	)		(27.5	)
Total		26,756.2			25,856.7			23,778.4

Our financial liabilities are primarily U.S. dollar-based: 51.4% of our total financial liabilities, or 98.3% of financial liabilities after swaps, were denominated in U.S. dollars at December 31, 2018. The principal amount of non-U.S. dollar financial liabilities outstanding at December 31, 2018 included 5,838.6 million Euros, 34,000.0 million Yen, 2,350.0 million Swiss Francs, 768,504.3 million Colombian Pesos, 5,877.0 million Hong Kong Dollars, 4,317.0 million Mexican Pesos, 177.0 million Peruvian Nuevos Soles, 4,200 million Norwegian Kroner, 192.0 million Turkish Lira, 590.0 million South African Rand, 1,315.0 million Australian Dollars, 220.2 million Brazilian Real, 1,034.1 million Indonesian Rupee, 2,138 million Indian Rupee and 40 million Canadian dollars; all of these non-U.S. dollar financial liabilities are swapped or otherwise hedged into U.S. dollars.

DEBT RECORD

We have never had an event of default declared with respect to 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.

38

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. At December 31, 2018, 99.5% 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, LIBOR 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, 2018, we were party to swap agreements with an aggregate notional amount of USD 22.7 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, 2018, the weighted average life of our financial assets was 3.6 years and the weighted average life of our financial liabilities was 4.6 years. Based on our asset and liability structure at December 31, 2017, 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, 2018, 99.9% of our assets and 51.4% of our liabilities were denominated in U.S. dollars, with the remainder of our liabilities being denominated principally in Euro, Yen, Hong Kong Dollar, Australian Dollar, Norwegian kroner, Turkish lire, South African rand and Swiss Francs, which liabilities were swapped. After swaps, 98.3% of our liabilities were denominated in U.S. dollars. Generally, funding that is contracted in currencies other than the US 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 19 (“Derivative Financial Instruments and Hedging Activities”) to our audited financial statements in this prospectus.

39

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 19 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

40

the governments or governmental institutions holding Series “B” shares and one director represents the private financial institutions holding Series “B” shares. Holders of Series “C” shares are entitled to elect two directors. In the event of a vacancy in a director position, the corresponding alternate director serves as director until such vacancy has been filled. Responsibilities of our Board of Directors include:

(1) establishing and directing our credit and economic policies;

(2) approving our budget;

(3) approving our borrowing limits;

(4) approving credits granted by us in excess of a specified limit;

(5) establishing or modifying internal regulations; and

(6) appointing the Executive President.

All of our directors are non-executive. As of the date of this prospectus, the composition of the Board of Directors was as follows:

As of the date of this prospectus, the Directors (and their Alternates) representing Series “A” shareholders are:

Argentina	Nicolás Dujovne (Felix Martin Soto)	Minister of Finance (Under Secretary of International Financial Relations from the Ministry of Economics and Public Finance)
Bolivia	Mariana Prado (Antonio Mullisaca)	Minister of Development Planning (Vice Minister of Public Investment and External Financing)
Brazil	Marcos Prado Troyjo (Erivaldo Alfredo Torres)	Vice-Minister of Foreign Trade and International Affairs — Ministry of Economy (Secretary of International Economic Affairs — Ministry of Economy)
Colombia	Alberto Carrasquilha (Jose Manuel Restrepo)	Minister of Finance and Public Credit (Minister of Commerce, Industry and Tourism)
Ecuador	Juan Carlos Jacome (Pablo Patiño)	President of the Board of Directors of Corporación Financiera Nacional (General Manager of Corporación Financiera Nacional)
Panama	Héctor Alexander (To be Appointed)	Minister of Economics and Finance
Paraguay	Benigno Lopez (Humberto Colmán)	Minister of Finance (Vice Minister of Economy)
Peru	Carlos Oliva (Betty Sotelo)	Minister of Economy and Finance (Vice Minister of Finance)
Trinidad and Tobago	Colm Imbert (Alvin Hilaire)	Minister of Finance (Governor of the Central Bank of Trinidad and Tobago)
Uruguay	Danilo Astori (Alberto Graña)	Minister of Economy and Finance (President of Banco Central del Uruguay)
Venezuela	Oswaldo Perez Cuevas	Vice Minister of Finance and Public Budget
	(Santiago Lazo Ortega)	(Vice Minister of Economic Planning)

41

As of the date of this prospectus, the Directors (and their Alternates) representing Series “B” shareholders:

Bolivia	Luis Arce Catacora (Sergio Cusicanqui)	Minister of Economy and Public Finance (Vice Minister of Treasury and Public Credit)
Colombia	Juan José Echavarría Soto	General Manager of Banco de la República
	(Gloria Alonso)	(Director of the National Planning Department)
Ecuador	Richard Martinez	Minister of Economy and Finance
	(Verónica Elizabeth Artola)	(General Manager of the Central Bank of Ecuador)
Peru	Carlos Linares	President of the Board of Directors of Corporación Financiera de Desarrollo (COFIDE)
	(Michel Canta)	(Vice Minister of Economy)
Venezuela	Xabier León	Executive Vice President of Banco de Desarrollo Económico y Social of Venezuela — BANDES
	(Vanessa Avendaño)	(Legal Consultant of Banco de Desarrollo Económico y Social of Venezuela — BANDES)
Private Financial Institutions	Maria Lorena Gutierrez (Angelo Caputi)	President of Corporación Financiera Colombiana S.A. (Executive President Banco de Guayaquil)

As of the date of this prospectus, the directors representing the Series “C” shareholders are Nadia Calviño, Minister of Economy and Enterprise for Spain and Arturo Herrera Gutiérrez, Secretary of Finance and Public Credit for Mexico. Their alternates are Donald Guerrero Ortiz, Minister of Finance for the Dominican Republic, and to be appointed, the Executive Vice President of Corporación de Fomento de la Producción (“CORFO”) for Chile, respectively.

The business address of each of the directors and each of the alternate directors listed above is Torre CAF, Piso 9, Avenida Luis Roche, Altamira, Caracas, Venezuela.

Our Board of Directors annually elects a Chairman to preside over the meetings of the Board of Directors and the shareholders’ general meeting. Alberto Carrasquilla is the current Chairman until March 31, 2020.

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 our 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.

In December 2016, Luis Carranza Ugarte was elected Executive President of CAF for the next five-year period (April 2017 to March 2022). Previously, the Executive President was L. Enrique Garcia, who led the Institution for more than 25 years (December 1991 to March 2017). Mr. Carranza is a renowned Peruvian economist who served as the Minister of Economy and Finance in his country on two occasions. He also worked at the International Monetary Fund and was chief economist for Latin America and Emerging Markets for BBVA in Spain, among other positions. Prior to becoming the Executive President of CAF, he was the director of the Center of Competitiveness for Development of the San Martín de Porres University.

42

Officers

As of the date of this prospectus, the Executive Officers of CAF are:

Luis Carranza Ugarte	Executive President and Chief Executive Officer
Renny Lopez	Acting Executive Vice President
José Carrera	Vice President of Country Programs
Antonio Pinheiro Silveira	Vice President of Infrastructure
Jorge Arbache	Vice President of Private Sector
Gabriel Felpeto	Vice President of Finance and Chief Financial Officer
Julian Suarez	Vice President of Social Development
Elvira Lupo	Vice President of Administration
Pablo Sanguinetti	Vice President of Knowledge
Renny Lopez	Vice President of Risks
Octavio Rosselli	General Counsel
Maria Arliani	Controller

Employees

At December 31, 2018, we employed 602 professionals and 83 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 Social Development, Vice President of Administration, Vice President of Knowledge and Vice President of Risks 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 the relationship with our employees to be good. There is no employee union and there have been no strikes in the history of CAF.

43

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 13.2 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		Trinidad & Tobago		Uruguay		Venezuela
Population (in millions)1
2017		44.27		11.05		209.29		49.07		16.62		4.10		6.81		32.17		1.37		3.46		31.98
2016		43.85		10.89		207.65		48.65		16.39		4.03		6.73		31.77		1.36		3.44		31.57
2015		43.42		10.72		205.96		48.23		16.14		3.97		6.64		31.38		1.36		3.43		31.16
GDP (USD in billions)2
2017		637.56		37.78		2,055.14		314.46		104.30		61.84		38.94		214.25		22.78		59.18		210.08
2016		554.11		34.19		1,793.31		282.75		99.94		57.82		36.05		194.54		22.66		52.69		236.12
2015		642.46		33.24		1,800.02		293.49		99.29		54.32		36.16		191.60		24.26		53.28		242.60
GDP per capita (USD)2
2017		14,463		3,413		9,896		6,380		6,217		15,089		5,600		6,732		16,638		16,942		6,890
2016		12,709		3,138		8,701		5,800		6,046		14,323		5,260		6,178		16,599		15,139		7,688
2015		14,895		3,099		8,803		6,089		6,099		13,663		5,353		6,150		17,834		15,366		7,923
Gross reserves (excluding gold) (USD in millions)1
2017		53,031		8,474		371,151		46,699		1,678		2,703		7,536		62,374		8,812		15,955		3,034
2016		36,323		8,487		362,505		45,962		3,781		3,847		6,579		60,524		9,923		13,468		3,265
2015		23,417		11,601		354,175		46,104		2,085		3,378		5,659		60,413		10,315		15,630		6,324
Customer price index growth2 3
2017		24.8		2.7		2.9		4.1		-0.2		0.5		4.5		1.4		1.3		6.6		2,818.2
2016		41.0		4.0		6.3		5.8		1.1		1.5		3.9		3.2		3.1		8.1		302.6
2015		27.8		3.0		10.7		6.9		3.4		0.3		3.1		4.4		1.6		9.4		159.7
Exports of Goods (f.o.b.) (USD in millions)4
2017		58,384		7,852		217,739		3,770		19,122		8,680		44,025		7,889		10,601		9,613		31,992
2016		57,733		7,082		185,235		31,045		16,798		8,502		36,310		6,964		11,195		8,579		29,394
2015		56,788		8,726		191,127		35,691		18,331		8,328		33,667		7,670		12,061		10,756		38,202
Import of Goods (f.o.b.) (USD in millions)4
2017		66,899		9,302		150,749		46,076		19,845		11,873		39,714		8,458		21,939		5,897		10,577
2016		55,610		8,427		137,552		44,831		16,189		9,753		36,148		8,137		20,935		6,038		15,541
2015		59,757		9,766		171,446		54,058		21,387		10,291		38,026		9,489		22,510		9,298		28,781

(1) This information is extracted from the World Bank’s World Development Indicators (WDI).

(2) Source: World Economic Outlook, International Monetary Fund.

(3) End of period.

(4) United Nations Department of Economic and Social Affairs of the United Nations, UN COMTRADE

44

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, other than such obligations as may be preferred by provisions of law that are both mandatory and of general application. “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 USD 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.

45

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 USD 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 USD 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

46

and payable will be repaid to us by such agent. Upon such repayment, all liability of our fiscal agent or any paying agent with respect to such monies shall thereupon cease, without, however, limiting in any way our unconditional obligation to pay principal of or any interest on the debt securities when due.

Negative Pledge

As long as any of the debt securities are outstanding and unpaid, but only up to the time amounts sufficient for payment of all principal and interest have been placed at the disposal of the fiscal agent, we will not cause or permit to be created on any of our property or assets any mortgage, pledge or other lien or charge 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 USD 100,000,000 (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 USD 100,000,000 (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.

Redemption for Tax Reasons

The debt securities may be redeemed at our option in whole, but not in part:

(i) at any time (if floating rate note provisions are not specified in the accompanying prospectus supplement as being applicable); or

(ii) on any interest payment date (if floating rate note provisions are specified in the accompanying prospectus supplement as being applicable),

on giving not less than 30 nor more than 60 days’ notice to the holders of the debt securities (which notice shall be irrevocable), at the principal amount of such debt securities or such other amount as may be specified in, or

47

determined in accordance with, the accompanying pricing supplement, together with interest accrued (if any) to the date fixed for redemption, if:

(A) we have or will become obliged to pay additional amounts as provided or referred to in “— Additional Payments by CAF” as a result of any change in, or amendment to, the laws or regulations of any of the full member shareholder countries or any political subdivision or any authority thereof or therein having power to tax, or any change in the application or official interpretation of such laws or regulations (including a holding by a court of competent jurisdiction), which change or amendment becomes effective on or after the date of issue of the first tranche of the debt securities; and

(B) such obligation cannot be avoided by us taking reasonable measures available to us,

provided, however, that no such notice of redemption shall be given earlier than:

(1) where the debt securities may be redeemed at any time, 90 days prior to the earliest date on which we would be obliged to pay such additional amounts if a payment in respect of the debt securities were then due; or

(2) where the debt securities may be redeemed only on an interest payment date, 60 days prior to the interest payment date occurring immediately before the earliest date on which we would be obliged to pay such additional amounts if a payment in respect of the debt securities were then due.

Prior to the publication of any notice of redemption pursuant to this section, we shall deliver to the fiscal agent (A) a certificate signed by two authorized officers of us stating that we are entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the right of us so to redeem have occurred and (B) an opinion of independent legal advisers of recognized standing to the effect that we have or will become obliged to pay such additional amounts as a result of such change or amendment. Upon the expiration of any such notice as is referred to in this section, we shall be bound to redeem the debt securities in accordance with this section.

Additional Payments by CAF

All payments of principal and interest in respect of the debt securities by or on behalf of us 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, levied, collected, withheld or assessed by or on behalf of any of the full member shareholder countries or any political subdivision therein or any authority 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 will result in receipt by the holder of debt securities after such withholding or deduction of such amounts as would have been received by them had no such withholding or deduction been required, except that no such additional amounts shall be payable in respect of any debt securities presented for payment:

(1) by or 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 having some connection with any of the full member shareholder countries other than the mere holding of the debt security; or

(2) if such withholding or deduction may be avoided by a holder of a debt security of any series complying with a request of us relating to any certification, identification or other reporting concerning its nationality, residence, identity or connection with any full member shareholder country if the holder is able to comply with the request without undue hardship and we have provided the notice in writing at least 60 days before such information is required to be provided by the holder; or

(3) more than 30 days after the Relevant Date, except to the extent that the holder of such debt security of any series would have been entitled to such additional amounts on presenting such debt security for payment on the last day of such period of 30 days; or

48

(4) if such withholding or deduction is imposed or required pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Code, or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code.

Any reference in this section to principal or interest shall be deemed to include any additional amounts in respect of principal or interest (as the case may be) which may be payable under this section.

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.

49

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 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 CT Corporation in The City of New York as our authorized agent upon which process in any such action may be served. We will irrevocably waive any immunity to which we might otherwise be entitled in any action arising out of or based on the debt securities brought in any state or federal court in the Borough of Manhattan, The City of New York. CT Corporation will not be an agent for service of process for actions brought under the United States securities laws, and our waiver of immunity will not extend to such actions.

50

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, other than such obligations as may be preferred by provisions of law that are both mandatory and of general application, and will be governed by the laws of the State of New York.

51

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 addresses only United States federal income taxation and does not discuss all of the tax consequences that may be relevant to you in light of your individual circumstances, including foreign, state or local tax consequences, and tax consequences arising under the Medicare contribution tax on net investment income or the alternative minimum tax. 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 not be treated as issued with original issue discount (“OID”) that is equal to or greater than the applicable de minimis threshold (“OID Securities”), and that all principal and interest payments on the debt securities will be denominated in United States dollars. This discussion also assumes that the debt securities are not treated as contingent payment debt instruments for United States federal income tax purposes. The United States federal income tax consequences of owning OID Securities, debt securities denominated in a currency other than United States dollars, and debt securities treated as contingent payment debt instruments will be discussed in an applicable prospectus supplement.

52

If an entity or arrangement that is treated as a partnership for United States federal income tax purposes 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. A person is a United States holder if it is a beneficial owner of a debt security and it is, for United States federal income tax purposes:

• 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.

This subsection does not apply to persons who are not United States holders. Such persons should refer to “Non-United States 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.

The debt securities may be issued with a de minimis amount of OID. While a United States holder is generally not required to include de minimis OID in income prior to the sale or maturity of the debt securities, United States holders that maintain certain types of financial statements and that are subject to the accrual method of tax accounting may be required to include de minimis OID on the debt securities in income no later than the time upon which they include such amounts in income on their financial statements. United States holders that maintain financial statements should consult their tax advisors regarding the tax consequences to them of this rule.

Interest paid by CAF on the debt securities is income from sources outside the United States and will generally be “passive” income for purposes of the rules regarding the foreign tax credit allowable to a United States holder.

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 security 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 security. Capital gain of a noncorporate United States holder is generally taxed at preferential rates where the property is held for more than one year. The deductibility of capital losses is subject to limitations.

53

Information with Respect to Foreign Financial Assets

Owners of “specified foreign financial assets” with an aggregate value in excess of USD 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 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, (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.

Non-United States Holders

This subsection describes the tax consequences to a Non-United States holder. The discussion below does not address the tax consequences to a Non-United States holder of an investment in a debt security that references directly or indirectly the performance of United States equities. The tax treatment of any such debt securities will be discussed in the applicable prospectus supplement. You are a Non-United States 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 Non-United States 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 Non-United States 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.

54

Foreign Account Tax Compliance Withholding

Certain non-United States financial institutions must comply with information reporting requirements or certification requirements in respect of their direct and indirect United States shareholders and/or United States accountholders to avoid becoming subject to withholding on certain payments. We and other non-United States financial institutions may accordingly be required to report information to the Internal Revenue Service (“IRS”) regarding the holders of debt securities and to withhold on a portion of payments under the debt securities to certain holders that fail to comply with the relevant information reporting requirements (or hold debt securities directly or indirectly through certain non-compliant intermediaries). However, under proposed Treasury regulations, such withholding will not apply to payments made before the date that is two years after the date on which final regulations defining the term “foreign passthru payment” are enacted. Moreover, such withholding would only apply to debt securities issued at least six months after the date on which final regulations defining the term “foreign passthru payment” are enacted. Holders are urged to consult their own tax advisors and any banks or brokers through which they will hold debt securities as to the consequences (if any) of these rules to them.

Backup Withholding and Information Reporting

If you are a noncorporate United States holder, information reporting requirements, on IRS Form 1099, generally would apply to payments of principal and interest on a debt security within the United States, and the payment of proceeds to you 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 fail to comply with applicable certification requirements or (in the case of interest payments) are notified by the IRS that you have failed to report all interest and dividends required to be shown on your federal income tax returns.

If you are a Non-United States 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. You are also generally exempt from backup withholding and information reporting requirements in respect of payments of principal and interest made within 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, as long as either (i) the payor or broker does not have actual knowledge or reason to know that you are a United States person and you have furnished a valid IRS Form W-8 or other documentation upon which the payor or broker may rely to treat the payments as made to a non-United States person, or (ii) 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 effected at a foreign office of a broker could be subject to information reporting in the same manner as a sale within the United States (and in certain cases may be subject to backup withholding as well) if (i) the broker has certain connections to the United States, (ii) the proceeds or confirmation are sent to the United States, or (iii) the sale has certain other specified connections with the United States.

You generally may obtain a refund of any amounts withheld under the backup withholding rules that exceed your income tax liability by filing a refund claim with the IRS.

55

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.

We 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.

56

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, 2018, 2017 and 2016 included in this Prospectus and the effectiveness of internal control over financial reporting, have been audited by Lara Marambio & Asociados, 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/ Antonio Recine
	Name: Antonio Recine
	Title:   Director of Financial Policies and International Issues

57

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Contents

INDEX TO FINANCIAL STATEMENTS

	PAGES
MANAGEMENT’S REPORT ON THE EFFECTIVENESS OF INTERNAL CONTROL OVER FINANCIAL REPORTING		F-2
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING		F-3
INDEPENDENT AUDITORS’ REPORT ON FINANCIAL STATEMENTS		F-4
BALANCE SHEETS		F-6
STATEMENTS OF COMPREHENSIVE INCOME		F-7
STATEMENTS OF STOCKHOLDERS’ EQUITY		F-8
STATEMENTS OF CASH FLOWS		F-9
NOTES TO THE FINANCIAL STATEMENTS		F-10

F-1

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

Corporación Andina de Fomento (“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 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 Stated 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.

The Management of CAF is responsible for designing, implementing and maintaining effective internal control over financial reporting. Management has assessed the effectiveness of CAF’s internal control over financial reporting as of December 31, 2018, based on the criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on that assessment, CAF’s Management concluded that CAF’s internal control over financial reporting is effective as of December 31, 2018.

Internal control over financial reporting has inherent limitations. Internal control over financial reporting is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of its inherent limitations, internal control over financial reporting may not prevent, or detect and correct, misstatements. Also, projections of any assessment of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

CAF’s financial statements as of December 31, 2018, have been audited by an independent accounting firm, which has also issued an independent auditors’ report on CAF’s internal control over financial reporting. The audit report, which is included in this document, expresses an unmodified opinion on CAF’s internal control over financial reporting as of December 31, 2018.

/s/ Luis Carranza Ugarte	/s/ Elvira Lupo de Velarde
Executive President	Vice-President of Administration

/s/ Franca Capobianco

Acting Accounting Director

February 15, 2019

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. Blandin, La Castellana Caracas 1060—Venezuela   Telf: +58 (212) 206 8501 Fax: +58 (212) 206 8870 www.deloitte.com/ve

Independent Auditors’ Report on Internal Control over Financial Reporting

To the Board of Directors and Stockholders of

Corporación Andina de Fomento (CAF)

We have audited the internal control over financial reporting of Corporación Andina de Fomento (CAF) as of December 31, 2018, based on the criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Management’s Responsibility for Internal Control over Financial Reporting

CAF’s management is responsible for designing, implementing, and maintaining effective internal control over financial reporting, and for its assessment about the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on the Effectiveness of Internal Control over Financial Reporting.

Auditors’ Responsibility

Our responsibility is to express an opinion on the CAF’s internal control over financial reporting based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

An audit of internal control over financial reporting involves performing procedures to obtain audit evidence about whether a material weakness exists. The procedures selected depend on the auditor’s judgment, including the assessment of the risks that a material weakness exists. An audit includes obtaining an understanding of internal control over financial reporting and testing and evaluating the design and operating effectiveness of internal control over financial reporting based on the assessed risk.

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

Definition and Inherent Limitations of Internal Control over Financial Reporting

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.

F-3

Because of its inherent limitations, internal control over financial reporting may not prevent, or detect and correct, misstatements. Also, projections of any assessment of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, Corporación Andina de Fomento (CAF) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on the criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Report on Financial Statements

We have also audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements of CAF as of and for the years ended December 31, 2018, 2017 and 2016, and our report dated February 15, 2019, expressed an unmodified opinion on those financial statements.

/s/ Deloitte

February 15, 2019

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.

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

Independent Auditors’ Report on Financial Statements

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, 2018, 2017 and 2016, 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.

F-4

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, 2018, 2017 and 2016, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Report on Internal Control over Financial Reporting

We have also audited, in accordance with auditing standards generally accepted in the United States of America, the CAF’s internal control over financial reporting as of December 31, 2018, based on the criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 15, 2019, expressed an unmodified opinion on the CAF’s internal control over financial reporting.

/s/ Deloitte

February 15, 2019

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-5

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Balance Sheets

As of December 31, 2018, 2017 and 2016

(In thousands of U.S. dollars)

	NOTES	2018		2017		2016
ASSETS
Cash and due from banks			127,355		61,294		72,403
Deposits with banks			2,594,312		2,001,766		1,652,367
Cash and deposits with banks	3		2,721,667		2,063,060		1,724,770
Marketable securities:
Trading	4 and 20		9,654,956		9,194,991		9,267,953
Other investments	5		658,750		1,453,869		996,554
Loans (US$ 74,402, US$ 49,007 and US$ 37,196 at fair value as of December 31, 2018, 2017 and 2016)	6 and 20		25,111,387		23,628,073		21,977,081
Less loan commissions, net of origination costs			102,823		97,530		95,682
Less allowance for loan losses	6		64,848		67,225		63,749
Loans, net			24,943,716		23,463,318		21,817,650
Accrued interest and commissions Receivable			523,098		427,702		345,115
Equity investments	7		459,667		433,025		386,051
Derivative financial instruments	19 and 20		184,805		532,668		118,353
Property and equipment, net	8		106,046		90,415		75,200
Other assets	9		761,542		452,518		937,342
TOTAL			40,014,247		38,111,566		35,668,988
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Deposits	10		3,210,545		2,950,143		3,098,883
Commercial paper	11		641,295		1,770,676		2,112,717
Borrowings (US$ 470,220, US$ 550,563 and US$ 535,514 at fair value as of December 31, 2018, 2017 and 2016), net	12 and 20		1,284,269		1,417,265		1,421,466
Bonds (US$ 21,461,610, US$ 19,559,372 and US$ 16,740,167 at fair value as of December 31, 2018, 2017 and 2016), net	13 and 20		21,620,093		19,718,627		17,145,306
Accrued interest payable			394,233		314,660		281,058
Derivative financial instruments	19 and 20		876,784		553,594		1,021,292
Accrued expenses and other liabilities	14		123,628		264,865		114,622
Total liabilities			28,150,847		26,989,830		25,195,344
STOCKHOLDERS’ EQUITY:	16 and 17
Subscribed capital			7,989,620		7,987,370		7,219,455
Less callable capital portion			1,589,660		1,589,660		(1,589,660	)
Less capital subscriptions receivable			1,233,240		1,413,415		(846,250	)
Paid-in capital			5,166,720		4,984,295		4,783,545
Additional paid-in capital			3,595,133		3,259,471		2,890,091
Reserves			2,877,970		2,801,571		2,678,853
Accumulated other comprehensive income			—		—		(1,563	)
Retained earnings			223,577		76,399		122,718
Total stockholders’ equity			11,863,400		11,121,736		10,473,644
TOTAL			40,014,247		58,111,566		35,668,988

See accompanying notes to the financial statements

F-6

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Statements of Comprehensive Income

For the years ended December 31, 2018, 2017 and 2016

(In thousands of U.S. dollars)

	NOTES		2018		2017		2016
Interest income:
Loans		2 (f)		1,028,928		798,295		666,548
Investments and deposits with banks		2 (e), 3 and 4		239,909		162,908		108,144
Loan commissions		2 (f)		41,337		40,822		38,768
Total interest income				1,310,174		1,002,025		813,460
Interest expense:
Bonds				715,186		517,955		397,755
Deposits				47,538		34,011		17,057
Commercial paper				15,535		25,265		18,366
Borrowings				43,302		32,115		27,278
Commissions				9,594		12,241		10,591
Total interest expense				831,155		621,587		471,047
Net interest income				479,019		380,438		342,413
Provision for loan losses		6		13,192		69,902		38,270
Net interest income, after provision for loan losses				465,827		310,536		304,143
Non-interest income:
Other commissions				2,581		3,264		3,784
Dividends and equity in earnings of investees		7		8,922		9,523		15,155
Unrealized changes in fair value related to equity investment		7		13,691		—		—
Other income				4,698		3,171		32,662
Total non-interest income				29,892		15,958		51,601
Non-interest expenses:
Administrative expenses		23		158,288		150,135		140,973
Impairment charge for equity investments		7		21,991		11,000		9,200
Other expenses				4,537		1,197		1,404
Total non-interest expenses				184,816		162,332		151,577
Income before unrealized changes in fair value related to financial instruments and contributions to Stockholders’ Special Funds				310,903		164,162		204,167
Unrealized changes in fair value related to financial instruments		21		504		4,301		(13,449	)
Income before contributions to Stockholders’ Special Funds				311,407		168,463		190,718
Contributions to Stockholders’ Special Funds		24		87,830		92,064		68,000
Net income				223,577		76,399		122,718
Other comprehensive income:
Unrecognized changes in assets/ liabilities under benefit pension plan		15 and 17		—		—		(1,563	)
Amortization of defined benefit pension items		15 and 17		—		1,563		571
Total comprehensive income				223,577		77,962		121,726

See accompanying notes to the financial statements

F-7

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Statements of Stockholders’ Equity

For the years ended December 31, 2018, 2017 and 2016

(In thousands of U.S. dollars)

	NOTE		Paid-in capital		Additional paid-in capital		Reserves						Accumulated other comprehensive income			Retained earnings			Total stockholders’ equity
							General reserve		Article 42 of the constitutive agreement		Total reserves
BALANCES AT DECEMBER 31, 2015				4,491,275		2,354,537		2,136,023		465,200		2,601,223		(571	)		77,630			9,524,094
Capital increase		16		292,270		535,554		—		—		—		—			—			827,824
Capitalization of Additional paid - in capital		16		—		—		—		—		—		—			—			—
Net income		16		—		—		—		—		—		—			122,718			122,718
Appropriated for general reserve		16		—		—		69,830		—		69,830		—			(69,830	)		—
Appropriated for reserve pursuant to Article 42 of by-laws				—		—		—		7,800		7,800		—			(7,800	)		—
Other comprehensive income		17		—		—		—		—		—		(992	)		—			(992	)
BALANCES AT DECEMBER 31, 2016				4,783,545		2,890,091		2,205,853		473,000		2,678,853		(1,563	)		122,718			10,473,644
Capital increase		16		200,750		369,380		—		—		—		—			—			570,130
Net income		16		—		—		—		—		—		—			76,399			76,399
Appropriated for general reserve		16		—		—		110,218		—		110,218		—			(110,218	)		—
Appropriated for reserve pursuant to Article No 42 of the Constitutive Agreement		16		—		—		—		12,500		12,500		—			(12,500	)		—
Other comprehensive income		17		—		—		—		—		—		1,563			—			1,563
BALANCES AT DECEMBER 31, 2017				4,984,295		3,259,471		2,316,071		485,500		2,801,571		—			76,399			11,121,736
Capital increase		16		182,425		335,662		—		—		—		—			—			518,087
Net income		16		—		—		—		—		—		—			223,577			223,577
Appropriated for general reserve		16		—		—		68,699		—		68,699		—			(68,699	)		—
Appropriated for reserve pursuant to Article No 42 of the Constitutive Agreement		16		—		—		—		7,700		7,700		—			(7,700	)		—
BALANCES AT DECEMBER 31, 2018				5,166,720		3,595,133		2,384,770		493,200		2,877,970		—			223,577			11,863,400

See accompanying notes to the financial statements

F-8

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Statements of Cash Flows

For the years ended December 31, 2018, 2017 and 2016

(In thousands of U.S. dollars)

	NOTE		2018			2017			2016
OPERATING ACTIVITIES:
Net income				223,577			76,399			122,718
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Unrealized gain on trading securities		4		(1,750	)		(1,332	)		4,260
Amortization of loan commissions, net of origination costs				(16,406	)		(15,822	)		(15,261	)
Provision for loan losses		6		13,192			69,902			38,270
Impairment charge for equity investments		7		21,991			11,000			9,200
Unrealized changes in fair value related to equity investment		7		(13,691	)		—
Equity in earnings of investees				(3,436	)		(4,175	)		-4,790
Amortization of deferred charges				6,120			5,082			5,360
Depreciation of property and equipment		8		6,005			5,767			5,682
Provision for employees’ severance benefits				13,080			12,645			11,581
Provision for employees’ savings plan				1,121			1,197			1,367
Unrealized changes in fair value related to financial instruments				(504	)		(4,301	)		13,449
Net changes in operating assets and liabilities:
Severance benefits paid or advanced				(12,124	)		(10,874	)		(6,755	)
Employees’ savings plan paid or advanced				(3,769	)		(2,963	)		(771	)
Trading securities, net				(445,068	)		73,409			(2,492,444	)
Interest and commissions receivable				(95,399	)		(83,018	)		(41,180	)
Other assets				(309,024	)		484,824			(445,963	)
Amortization of deferred charges				(6,120	)		(5,082	)		(5,360	)
Conciliación margen colateral				318,409			(487,356	)		449,541
Trade date				—			—			(2,876	)
Other assets				3,265			(7,614	)		(4,658	)
Accrued interest payable				79,572			33,601			31,523
Accrued expenses and other liabilities				(148	)		12,591			7,177
Total adjustments and net changes in operating assets and liabilities				(447,949	)		95,095			(2,466,213	)
Net cash (used in) provided by operating activities				(224,372	)		171,494			(2,343,495	)
INVESTING ACTIVITIES:
Purchases of other investments		5		(2,315,421	)		(3,667,575	)		(3,477,421	)
Maturities of other investments		5		3,110,541			3,210,260			3,667,153
Loan origination and principal collections, net		6		(1,475,133	)		(1,703,184	)		(1,560,635	)
Equity investments, net		7		(31,506	)		(53,799	)		(62,071	)
Property and equipment, net		8		(21,636	)		(20,982	)		(7,959	)
Net cash used in investing activities				(733,155	)		(2,335,280	)		(1,440,933	)
Carried forward,				(957,527	)		(2,063,786	)		(3,784,428	)
Brought forward,				(957,527	)		(2,063,786	)		(3,784,428	)
FINANCING ACTIVITIES:
Net increase (decrease) in deposits				260,402			(148,740	)		398,635
Proceeds from commercial paper				2,629,208			3,864,251			4,925,553
Repayment of commercial paper				(3,758,589	)		(4,206,292	)		(5,402,711	)
Net (increase) decrease in derivative-related collateral				(457,805	)		626,566			(449,354	)
Proceeds from issuance of bonds				4,900,589			3,809,731			3,961,421
Repayment of bonds				(2,355,306	)		(2,098,519	)		(1,557,104	)
Proceeds from borrowings				169,699			141,804			272,352
Repayment of borrowings				(290,151	)		(156,855	)		(273,949	)
Proceeds from issuance of shares				518,087			570,130			827,824
Net cash provided by financing activities				1,616,134			2,402,076			2,702,667
NET INCREASE IN CASH AND DEPOSITS WITH BANKS				658,607			338,290			(1,081,761	)
CASH AND DEPOSITS WITH BANKS AT BEGINNING OF THE YEAR				2,063,060			1,724,770			2,806,531
CASH AND DEPOSITS WITH BANKS AT END OF THE YEAR				2,721,667			2,063,060			1,724,770
SUPPLEMENTAL DISCLOSURE:
Interest paid during the period				727,661			561,366			417,009
NON-CASH FINANCING ACTIVITIES:
Changes in derivative financial instruments assets				347,863			(414,315	)		97,156
Changes in derivative financial instruments liabilities				323,190			(467,698	)		213,195

See accompanying notes to the financial statements

F-9

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 Constitutive Agreement. Series “A” and “B” stockholder countries are: Argentina, Bolivia, Brazil, Colombia, Ecuador, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay and Venezuela. Series “C” stockholder countries are: Barbados, Chile, Costa Rica, Dominican Republic, Jamaica, Mexico, Portugal and Spain. 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, Mexico City, Panama City, La Paz, Lima, Madrid, Montevideo, Port of Spain 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 owned and sponsored by other countries and organizations, destined to finance programs agreed upon with donor countries and organizations which are in line with CAF’s policies and strategies.

CAF raises funds to finance its operations from sources 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.

b. Use of estimates – The preparation of the accompanying financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at 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 the accompanying financial statements refer to estimating the allowance for loan losses and valuation and classification at fair values of financial instruments, among others. Management believes these estimates are adequate. Actual results could differ from those estimates.

c. Transactions denominated in other currencies – Transactions denominated 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 statements of comprehensive income.

d. Cash and deposits with banks – Cash and deposits with banks comprised of cash, due from banks and short-term deposits with banks 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 marketable securities are mainly bought and held with the purpose of selling them in the short term. Trading marketable securities are recorded at fair value. Gains and losses from sales of trading marketable securities and changes in the fair value of trading marketable securities are included in interest income of investments and deposits with banks in the statements of comprehensive income.

F-10

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 loan portfolio as follow:

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 (public and private sectors), among others, which are not guaranteed by national governments.

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 interest income—loan commissions in the statements of comprehensive income.

The accrual for interest on loans is discontinued at the time a private sector loan is 90 days delinquent or a public sector loan is 180 days 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 status 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 payment 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 any one country or economic group, which might be affected by market situations or other circumstances. For this purpose, CAF uses certain measurement parameters, such as: CAF’s stockholders’ equity, total loan portfolio, exposure to economic groups from public and private sectors, among others. CAF reviews, on a semi-annual basis, the credit risk rating of its loans and classifies the risk into the following categories:

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

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

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

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

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

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

(vii) Doubtful – Currently highly vulnerable.

(viii) Loss – Payment default on financial commitments.

F-11

g. Troubled debt restructuring – A restructuring of a loan constitutes a troubled debt restructuring if CAF for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider.

The concession granted by CAF may include the modifications or renegotiation to the contractual terms of the loans such as interest rate reductions, restatement of future cash flows, extension of loan terms, and other modifications in order to minimize possible economic losses.

Loans whose terms are modified in a troubled debt restructuring, generally, are identified as impaired. CAF’s management evaluates the compliance with the new terms of the restructured loan for a reasonable period to calculate specific allowances for loan losses and if the remaining balance of the restructured loan is considered collectible, the restructured loan could return to accrual status.

h. Allowance for loan losses – The allowance for loan losses is maintained at a level CAF believes to be adequate to absorb losses inherent in the loan portfolio at 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 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 collectively evaluated and established by CAF based on the individual long-term foreign currency debt rating applicable to the borrower countries, which is determined using the average rating of three recognized international credit rating agencies at the date of each of the balance sheet presented. The long-term foreign currency debt rating considers a default probability. Given CAF’s status as a de facto preferred creditor and the immunities and privileges conferred by its stockholder countries, which are established in CAF’s Constitutive Agreement and other similar agreements, a correction factor is used reflecting a lower default probability – usually equivalent to three levels the average rating referred above.

For the non-sovereign loans, the allowance for loan losses is individually evaluated and 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 international risk-rating agencies.

For those cases where the category equivalent to the rating of a given borrower determined in accordance with any of the international 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 international average risk-rating agencies will be used.

A specific allowance for loan losses is individually evaluated and 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.

i. 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 catalyst in attracting resources to stockholder countries.

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.

F-12

For the year ended December 31, 2017 and 2016, investments representing less than 20% of the voting rights of the investee are recorded using the cost method.

During the year ended December 31, 2018, CAF prospectively adopted the policy of subsequent measurement for these investments in equity securities without readily determinable fair value, as follows:

(i) Direct investments in equity securities of companies, (a) previously accounted for at cost without a readily determinable fair value and (b) that do not qualify for the net asset value practical expedient to estimate fair value, are accounted for at cost minus impairment (if any), plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer.

(ii) Equity investments in funds without readily determinable fair value, previously accounted for at cost, CAF has applied the net asset value practical expedient to estimate fair value.

The dividends received from equity investments accounted for at fair value (2018) and cost (2017 and 2016), are recognized as income.

j. 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 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 estimated useful life for assets is 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

k. Other assets – Other assets mainly include the following (Note 2e):

Derivative-related collateral – CAF receives or posts collateral from or to individual swap and futures counterparties in the form of 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 cash collateral received in other assets with a corresponding obligation to return the cash collateral received in accrued expenses and other liabilities. Cash collateral posted to swap and futures counterparties, under the collateral agreement, are recorded in other assets.

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.

l. 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.

m. Deposits and commercial paper – Deposits and commercial paper are recorded at amortized cost.

n. Borrowings – The borrowings account includes those obligations to local or foreign financial institutions and commercial banks, which are recorded at amortized cost, except for some borrowings that are designated a fair value hedge or as an economic hedge. The up-front costs and fees related to the issuance of borrowings recorded at amortized cost are deferred and reported in the balance sheet as a direct deduction from the face amount of borrowings and amortized during the term of the

F-13

borrowings as interest expense. The up-front cost and fees related to borrowing that are designated a fair value hedge or as an economic hedge, are recognized in the statement of comprehensive income when they occur.

o. Bonds – Medium and long-term bond 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 bond’s up-front costs and fees, are recognized in the statements of comprehensive income when they occur. CAF enters into cross-currency and interest rate swaps to economically hedge the interest rate and foreign exchange risks related with these bonds.

• Bonds denominated in US$ are recognized at fair value. The interest rate risk on US$ denominated bonds is hedged using interest rate swaps, and such interest rate swaps are designated as part of fair value hedge accounting relationships assuming no hedge ineffectiveness (the “shortcut method”). The related bond’s up-front costs and fees are deferred and reported in the balance sheet as a direct deduction from the face amount of the bonds, and amortized during the term of the bonds as interest expense.

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

p. 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 applicable labor law of the member countries. The accrual for employee severance benefits is presented as part of “labor benefits” account under “Accrued expenses and 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 annually.

In the case of unjustified dismissal or involuntary termination, employees have the right to an additional severance benefit of one month of salary per year of service.

q. Pension plan – In March 2005, CAF established a defined benefit plan (the Plan), which is mandatory for all employees hired on or after the establishment 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.

r. 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 a 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 hedge 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 of the hedged items.

Changes in the fair value of highly effective derivative financial instruments considered hedges from an accounting perspective (fair value hedge) are recognized in the balance sheet. The ineffective

F-14

portion of the change in fair value for a hedged derivative is recognized in the statements of comprehensive income.

Certain derivative financial instruments, although considered to be an effective hedge from an economic perspective (economic hedge), have not been designated as a hedge for accounting purposes. The changes in the fair value of such derivative financial instruments are recognized in the statements of comprehensive income, concurrently with the change in fair value of the underlying assets and liabilities.

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. 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 statements of comprehensive income.

s. 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.

t. Guarantees – CAF provides guarantees on 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.

u. 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 loans are classified as either sovereign or non-sovereign. Provision for guarantees is estimated by CAF considering the credit risk exposure, default probability and loss given default. Provision for sovereign guarantees losses is based on the individual long-term

F-15

foreign currency debt rating of the guarantor countries (“country risk rating”) considering the weighted average rating of three recognized international risk rating agencies at the date of the financial statements preparation. These country risk ratings have associated default probability. Given CAF’s status as a de facto preferred creditor, arising from its status as a multilateral financial institution and from the interest of its borrowers in maintaining their credit standing with CAF, and taking into account the immunities and privileges conferred by its stockholder countries, which are established in CAF’s Constitutive Agreement and other similar agreements, a factor that reflects a lower default probability – usually equivalent to three levels up in this weighted average rating is used. For non-sovereign guarantees, the provision is determined by considering the CAF internal rating of each client and the weighted average rating of the aforementioned agencies.

The provision for guarantees losses, are reported as other liabilities.

v. Recent accounting pronouncements –

Recently adopted accounting pronouncements

In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this ASU require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this ASU also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this ASU eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities and the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. This ASU was adopted prospectively by CAF on January 1, 2018, and such adoption did not have a material impact on its financial statements. The effects of adopting this ASU are disclosed in Notes 7 and 20.

Recent accounting pronouncements applicable –

ASU 2016-13, Financial Instruments – Credit Losses

In June 2016, the FASB issued ASU 2016-13. Financial Instruments – Credit Losses, which amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. The ASU eliminates the probable initial recognition threshold in current guidance and, instead, requires an entity to reflect its current estimate of all expected credit losses. This ASU affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This ASU will be effective for CAF in 2020.

ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs / Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB issued the ASU 2017-08 Receivables – Nonrefundable Fees and Other Costs / Premium Amortization on Purchased Callable Debt Securities. The amendments in this update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. This ASU will be effective for CAF in 2019. CAF does not expect the ASU to have a material impact on its financial statements.

F-16

ASU 2017-12, Derivatives and Hedging / Targeted Improvements to Accounting for Hedging Activities and ASU 2018-16, Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes

In August 2017, the FASB issued the ASU 2017-12 Derivatives and Hedging / Targeted Improvements to Accounting for Hedging Activities. The amendments in this Update more closely align the results of cash flow and fair value hedge accounting with risk management activities through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. The amendments address specific limitations in current GAAP by expanding hedge accounting for both nonfinancial and financial risk components and by refining the measurement of hedge results to better reflect an entity’s hedging strategies. Thus, the amendments will enable an entity to report more faithfully the economic results of hedging activities for certain fair value and cash flow hedges and will avoid mismatches in earnings by allowing for greater precision when measuring changes in fair value of the hedged item for certain fair value hedges.

On October 25, 2018, the FASB issued the ASU 2018-16,11 which amends ASC 815 to add the Overnight Index Swap (OIS) rate based on the secured overnight financing rate as a fifth U.S. benchmark interest rate. The other four eligible benchmark interest rates under ASC 815 are:

• Interest rates on direct Treasury obligations of the U.S. government.

• The LIBOR swap rate.

• The OIS Rate based on the Fed Funds Effective Rate.

• The Securities Industry and Financial Markets Association Municipal Swap Rate.

These ASU will be effective for CAF in 2019. CAF does not expect the ASU to have a material impact on its financial statements.

ASU 2018-13, Fair value measurements and ASU 2018-14, Disclosures Improvements

On August 28, 2018, the FASB issued two ASU and two changes to its conceptual framework that are intended to improve the effectiveness of disclosures in notes to financial statements. Specifically, the FASB released the following:

ASU 2018-13, which modifies the disclosure requirements related to fair value measurement. The objective of the disclosure requirements in this Subtopic is to provide users of financial statements with information about assets and liabilities measured at fair value in the statement of financial position or disclosed in the notes to financial statements:

a. The valuation techniques and inputs that a reporting entity uses to arrive at its measures of fair value, including judgments and assumptions that the entity makes.

b. The uncertainty in the fair value measurements as of the reporting date.

c. How changes in fair value measurements affect an entity’s performance and cash flows.

This ASU will be effective for CAF in 2019.

ASU 2018-14, which modifies the ASC 715-20 to improve disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. These ASU will be effective for CAF in 2020. CAF is currently evaluating the effects of adopting this ASU.

F-17

3. CASH AND DEPOSITS WITH BANKS

Cash and deposits with banks with original maturity of three months or less include the following:

	December 31,
	2018		2017		2016
Cash and due from banks		127,355		61,294		72,403
Deposits with banks:
U.S. dollars		2,594,312		2,001,766		1,652,367
		2,721,667		2,063,060		1,724,770

4. MARKETABLE SECURITIES

Trading

A summary of trading securities follows:

	December 31,
	2018				2017				2016
	Amount		Average maturity (years)		Amount		Average maturity (years)		Amount		Average maturity (years)
U.S. Treasury Notes		1,799,690		1.86		1,588,857		4.15		1,867,916		1.82
Non-U.S. governments and government entities bonds		243,581		1.31		106,812		2.21		236,945		0.66
Financial institutions and corporate securities:
Commercial paper		3,371,479		0.13		3,146,896		0.18		3,005,618		0.20
Certificates of deposits		1,707,010		0.19		2,065,830		0.29		2,257,292		0.36
Bonds		1,856,325		2.52		1,605,236		2.22		1,233,530		1.51
Collateralized mortgage obligation		352,643		4.03		375,733		3.86		336,041		4.47
Liquidity funds		324,228		1.00		305,627		1.00		330,611		1.00
		7,611,685		0.91		7,499,322		0.86		7,163,092		0.71
Marketable securities		9,654,956		1.08		9,194,991		1.44		9,267,953		0.93

Each certificate of deposit bears a maturity date and specified fixed interest rate. It also is held through The Depository Trust Company (DTC) and has a CUSIP number, which is a code that identifies a financial security and facilitates trading. The liquidity funds are comprised of short-term (less than one year) securities representing high-quality liquid debt and monetary instruments.

The fair value of trading securities include net unrealized gain of US$ 1,750, US$ 1,332 and unrealized losses US$ 4,260, at December 31, 2018, 2017 and 2016, respectively.

Net realized gains from trading securities of US$ 34,498, US$ 36,183 and US$ 25,986 for the years ended December 31, 2018, 2017 and 2016, respectively, are included in the statements of comprehensive income as part of Investments and deposits with banks.

CAF places its short-term investments mainly in high grade financial institutions and corporate securities. CAF has conservative investment guidelines that limit the amount of credit risk exposure, considering among other factors, limits as to credit ratings, limits as to duration exposure, specific allocations by type of investment instruments and limits across sector and currency allocation. At December 31, 2018 and 2017, CAF does not have any significant concentrations of credit risk according to its investment guidelines. Non-US dollar-denominated securities included in marketable securities amounted to the equivalent of US$ 12,480, US$ 87,819 and US$ 33,452 at December 31, 2018, 2017 and 2016, respectively.

F-18

Maturity of marketable securities are as follows:

	December 31,
	2018		2017		2016
Remaining maturities:
Less than one year		6,032,574		6,312,305		6,289,696
Between one and two years		1,964,737		518,233		2,249,657
Between two and three years		649,114		449,968		424,450
Between three and four years		568,404		182,553		126,963
Between four and five years		305,809		1,561,551		85,918
Over five years		134,318		170,381		91,269
		9,654,956		9,194,991		9,267,953

5. OTHER INVESTMENTS

Deposits with banks due with more than 90 days (original maturity) are as follows:

	December 31,
	2018		2017		2016
U.S. dollars		658,165		1,453,145		995,792
Other currencies		585		724		762
		658,750		1,453,869		996,554

The interest rates on these deposits ranged from 1.88% to 3.25% at December 31, 2018, from 1.33% to 2.24% at December 31, 2017 and from 0.90% to 1.62% at December 31, 2016.

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 to private institutions or companies of these countries.

F-19

Loans by country are summarized as follows:

	December 31,
	2018			2017			2016
Stockholder country:
Argentina		3,577,715			3,207,732			2,839,947
Barbados		84,014			86,650			85,000
Bolivia		2,562,869			2,483,765			2,211,132
Brazil		1,694,502			2,116,352			1,984,105
Chile		425,000			305,000			111,000
Colombia		2,840,345			2,516,203			2,339,206
Costa Rica		88,795			89,872			113,570
Dominican Republic		206,515			251,764			212,064
Ecuador		3,586,804			3,437,558			3,317,875
Jamaica		—			—			4,496
Mexico		530,000			305,000			381,729
Panama		1,900,354			1,503,012			1,464,317
Paraguay		466,200			418,669			337,105
Peru		2,039,674			2,279,635			2,274,512
Spain		—			—			44,203
Trinidad & Tobago		600,000			300,000			—
Uruguay		994,685			1,044,167			935,256
Venezuela		3,514,102			3,285,490			3,320,841
Sub-total loans		25,111,574			23,630,869			22,025,057
Fair value adjustments		(187	)		(2,796	)		723
Loans		25,111,387			23,628,073			22,025,780

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

At December 31, 2018, 2017 and 2016, loans denominated in other currencies amounted to an equivalent of US$ 30,155, US$ 45,597 and US$ 57,212, respectively, principally denominated in Peruvian nuevos soles, Colombian pesos and Bolivian bolivianos. At December 31, 2018, 2017 and 2016, fixed interest rate loans amounted to US$ 134,104, US$ 117,752 and US$ 177,070, respectively.

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

	December 31,
	2018		2017		2016
Public sector		21,571,079		20,201,026		18,773,300
Private sector		3,540,495		3,429,843		3,203,058
		25,111,574		23,630,869		21,976,358

The weighted average yield of the loan portfolio is shown below:

	December 31,
	2018				2017				2016
	Amount		Weighted average yield (%)		Amount		Weighted average yield (%)		Amount		Weighted average yield (%)
Loans		25,111,574		4.43		23,630,869		3.49		21,976,358		3.41

F-20

Loans by industry segments are as follows:

	December 31,
	2018		%		2017		%		2016
Electricity, gas and water supply		7,853,261		31		7,777,829		33		7,314,488
Transport, warehousing and communications		7,288,024		29		7,601,610		32		7,557,849
Social and other infrastructure programs		6,473,592		26		4,858,267		21		4,105,846
Financial services — commercial banks		2,141,810		9		2,213,724		9		1,626,136
Financial services — development banks		999,466		4		764,751		3		867,899
Agriculture, hunting and forestry		151,551		1		166,138		l		150,018
Manufacturing industry		91,413		—		107,270		—		215,513
Others		112,457		—		141,280		1		138,609
		25,111,574		100		23,630,869		l00		21,976,358

Loans mature as follows:

	December 31,
	2018		2017		2016
Remaining maturities:
Less than one year		5,327,009		4,873,919		4,174,292
Between one and two years		2,638,910		2,517,977		2,142,039
Between two and three years		2,399,462		2,411,805		2,303,002
Between three and four years		2,416,173		2,159,737		2,061,910
Between four and five years		2,169,924		2,089,476		1,932,948
Over five years		10,160,096		9,577,955		9,362,167
		25,111,574		23,630,869		21,976,358

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

	December 31,
	2018		2017		2016
Sovereign guaranteed		20,737,233		19,402,360		18,028,341
Non-sovereign guaranteed		4,374,341		4,228,509		3,948,017
		25,111,574		23,630,869		21,976,358

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. At December 31, 2018, 2017 and 2016, the sovereign guaranteed loan portfolio is classified by CAF as satisfactory — very good. For purpose of determining the allowance for loan losses, rating assigned by external agencies are used (Note 2h).

F-21

The credit quality of the non-sovereign guaranteed loan portfolio is presented by internal risk rating classification as follow:

	December 31,
	2018		2017		2016
Risk rating classification:
Satisfactory-outstanding		475,000		—		—
Satisfactory-very good		1,816,725		1,788,467		1,671,461
Satisfactory-adequate		1,271,575		1,637,519		1,331,783
Watch		590,259		535,731		632,629
Special mention		108,087		128,133		173,761
Doubtful		112,695		76,081		138,383
Sub-standard		—		62,578		—
		4,374,341		4,228,509		3,948,017

Loan portfolio quality

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

	December 31,
	2018		2017		2016
During the year CAF recorded the following transactions:
Loans written-off		22,000		69,526		33,730
Purchases of loan portfolio		—		—		—
Sales of loan portfolio		16,167		43,376		52,500

	December 31,
	2018		2017		2016
CAF presented the following amounts and quality indicators as of the end of the year:
Impaired loans		112,695		138,659		120,841
Non-accrual loans		112,695		138,659		120,841
Trouble debt restructured		0		0		44,203
Overdue loans		124,286		94,240		7,513
Allowance for loan losses as a percentage of loan portfolio		0.26%		0.28%		0.29%
Nonaccrual loans as a percentage of loan portfolio		0.45%		0.59%		0.55%
Overdue loan principal as a percentage of loan portfolio		0.49%		0.40%		0.03%

At December 31, 2018, there are outstanding overdue amounts from Venezuela totaling US$ 182,776, comprising, US$ 124,286 of principal and US$ 58,490 of interest and commissions. Those amounts were originally due between December 7, 2018 and December 28, 2018. During January 2019, CAF received payments for US$ 6,133 related to this overdue interest.

At December 31, 2017, there were outstanding overdue amount from Venezuela totaling US$ 136,507 comprising, US$ 94,240 of principal and US$ 42,267 of interest and commissions. Those amounts were received in full in January 2018.

At December 31, 2016, there were outstanding overdue amount for US$ 7,513. These amounts were received in full in January 2017.

F-22

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, 2018, 2017 and 2016, CAF had loans of this nature amounting to US$ 366,048, US$ 423,536 and US$ 743,401, respectively; whereas other financial institutions provided funds for US$ 208,761, US$ 213,739 and US$ 455,754, respectively.

Troubled Debt Restructuring

At December 31, 2018, there were no troubled debt restructuring. At December 31, 2017, there was a troubled debt restructuring of a non-sovereign guaranteed loan, classified as impaired, with an outstanding balance of US$ 44,203, which was totally written off.

At December 31, 2016, there was a troubled debt restructuring of a non-sovereign guaranteed loan, classified as impaired, with an outstanding balance of US$ 44,203. As a result of the restructuring performed in December 31, 2016, the principal modifications to the loan agreement consisted in extension of loan term and interest rate reductions resulting in restatement of future cash flows, based on these facts CAF recognized a reduction of allowance for loan losses.

Allowance for Loan Losses

Changes in the allowance and the balance for loan losses over the outstanding amounts, individually and collectively evaluated, are presented below:

	December 31,
	2018								2017								2016
	Sector					Total			Sector					Total			Sector						Total
	Sovereign		Non- sovereign						Sovereign		Non- sovereign						Sovereign			Non- sovereign
Balances at beginning of year		35,239		31,986			67,225			21,227		42,522			63,749			26,269			32,660			58,929
Provision for loan losses		1,476		11,716			13,192			14,012		55,890			69,902			(5,042	)		43,312			38,270
Loans written-off		—		(22,000	)		(22,000	)		—		(69,526	)		(69,526	)		—			(33,730	)		(33,730	)
Recoveries		—		6,431			6,431			—		3,100			3,100			—			280			280
Balances at end of year		36,715		28,133			64,848			35,239		31,986			67,225			21,227			42,522			63,749
Allowance:
Individually evaluated for loan losses		—		28,133			28,133			—		31,986			31,986			—			42,522			42,522
Collectively evaluated for loan losses		36,715		—			36,715			35,239		—			35,239			21,227			—			21,227
		36,715		28,133			64,848			35,239		31,986			67,225			21,227			42,522			63,749
Loans:
Individually evaluated for loan losses		—		4,374,341			4,374,341			—		4,228,509			4,228,509			—			3,948,017			3,948,017
Collectively evaluated for loan losses		20,737,233		—			20,737,233			19,402,360		—			19,402,360			18,028,341			—			18,028,341
		20,737,233		4,374,341			25,111,574			19,402,360		4,228,509			23,630,869			18,028,341			3,948,017			21,976,358

F-23

7. EQUITY INVESTMENTS

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

	December 31,
	2018		2017		2016
Investments — Equity securities		394,638		397,357		348,179
Investments — Equity method		65,029		35,668		37,872
		459,667		433,025		386,051

CAF recognized the following in the statement of comprehensive income related to equity securities:

	Year Ended December 31,
	2018		2017		2016
Dividends		5,486		912		10,365
Changes in fair value measurements		13,691		—		—
Impairment in equity securities		21,991		11,000		9,200

As a result of the implementation of ASU 2016-01, during the year ended December 31, 2018, CAF recognized gains of US$ 13,691, corresponding to the net increase in the fair value of investments in equity instruments.

For the years ended December 31, 2018, 2017 and 2016, CAF recognized its equity in earnings of the investees for US$ 3,436, US$ 4,175 and US$ 4,790, respectively, for investments under the equity method, which are recorded in the statements of comprehensive income.

During 2017, CAF recognized US$ 4,436 for gain on sale, which amounts are included in the statements of comprehensive income. As of December 31, 2018 and 2016, CAF did not recognize any gain on sale.

8. PROPERTY AND EQUIPMENT, NET

A summary of property and equipment, net follows:

	December 31,
	2018		2017		2016
Land		27,029		27,029		27,029
Buildings		40,134		40,134		38,931
Buildings improvements		21,056		20,891		20,948
Leasing building improvements		8,839		8,962		6,948
Furniture and equipment		30,215		27,507		25,956
Vehicles		1,079		1,021		1,020
		128,352		125,544		120,868
Less accumulated depreciation		67,363		64,937		59,677
Projects in progress		45,057		29,808		14,009
		106,046		90,415		75,200

Depreciation expenses of US$ 6,005, US$ 5,767 and US$ 5,682 for property and equipment for the years ended December 31, 2018, 2017 and 2016, respectively, are included in the statements of comprehensive income as part of administrative expenses.

F-24

9. OTHER ASSETS

A summary of other assets follows:

	December 31,
	2018		2017		2016
Derivative-related collateral		735,955		417,547		904,902
Intangible assets, net		10,169		13,071		14,052
Other		15,418		21,900		18,388
		761,542		452,518		937,342

10. DEPOSITS

A summary of deposits follows:

	December 31,
	2018		2017		2016
Demand deposits		72,007		71,010		77,321
Time deposits:
Less than one year		3,138,538		2,879,133		3,021,562
		3,210,545		2,950,143		3,098,883

At December 31, 2018, 2017 and 2016, the weighted average interest cost of deposits was 1.91%, 1.11% and 0.61%, respectively. Deposits are issued for amounts equal to or more than US$ 100. Total deposits denominated in other currencies amounted to an equivalent of US$ 457,848, US$ 347,956 and US$ 914 at December 31, 2018, 2017 and 2016, respectively.

11. COMMERCIAL PAPER

At December 31, 2018, 2017 and 2016, the outstanding amount of commercial paper issued by CAF, amounts to US$ 641,295, US$ 1,770,676 and US$ 2,112,717, respectively, all of which matures in 2019, 2018 and 2017, respectively. At December 31, 2018, 2017 and 2016, the weighted average interest cost on commercial paper was 1.94%, 1.30% and 0.82%, respectively.

12. BORROWINGS

A summary of borrowings by currency follows:

	December 31.
	2018			2017		2016
U.S. dollars		1,158,009			1,262,823		1,269,296
Euros		106,628			112,900		112,900
Peruvian nuevos soles		22,828			33,016		35,416
Venezuelan bolivars		92			287		60
Other currencies		1,947			1,119		7,425
		1,289,504			1,410,145		1,425,097
Fair value adjustments		(4,415	)		8,129		(2,722	)
Less debt issuance costs		820			1,009		909
Carrying value of borrowings		1,284,269			1,417,265		1,421,466

F-25

At December 31, 2018, 2017 and 2016, the fixed interest-bearing borrowings amounted to US$ 467,169, US$ 546,340 and US$ 555,514, respectively. At December 31, 2018, 2017 and 2016, the weighted average interest rate after considering the impact of interest rate swaps was 3.14%, 2.58% and 2.02%, respectively.

During the year ended December 31, 2016, CAF recognized income for US$ 28,223, mainly from the change of the exchange regulation which originated an exchange difference in borrowings denominated in Venezuelan bolivars, which are presented in “Non-interest income — Other income”. During the year ended December 31, 2018, there has been no significant changes on the exchange regulation.

Borrowings, by remaining maturities, are summarized below:

	December 31,
	2018		2017		2016
Remaining maturities:
Less than one year		181,505		507,649		111,936
Between one and two years		392,356		173,567		540,411
Between two and three years		155,327		151,168		158,231
Between three and four years		130,031		139,178		129,841
Between four and five years		122,532		118,626		117,841
Over five years		307,753		319,957		366,837
		1,289,504		1,410,145		1,425,097

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

At December 31, 2018, 2017 and 2016, there were unused term credit facilities amounting to US$ 782,691, US$ 851,997 and US$ 478,995, respectively.

13. BONDS

An analysis of outstanding bonds follows:

	December 31,
	2018						2017						2016
	At original exchange rate		At spot exchange rate		Weighted average cost, after swaps (%)		At original exchange rate		At spot exchange rate		Weighted average cost, after swaps (%)		At original exchange rate		At spot exchange rate		Weighted average cost, after swaps (%)
U.S. dollars		9,235,275		9,235,275		6.71		8,105,090		8,105,090		4.17		7,799,202		7,799,202		2.28
Euro		6,952,140		6,574,568		1.81		5,334,371		5,691,902		2.00		4,977,094		4,169,433		2.05
Swiss francs		2,465,629		2,388,454		2.60		2,659,698		2,601,868		2.28		2,639,425		2,457,002		2.28
Australian dollars		1,041,899		925,405		3.63		910,080		889,513		2.77		718,094		643,556		2.43
Hong Kong dollars		757,299		750,575		1.90		757,292		752,217		1.54		548,686		548,972		1.85
Norwegian kroner		622,500		481,895		3.26		622,501		511,627		2.56		622,501		488,361		2.26
Japanese yen		347,422		308,250		4.20		347,680		301,766		3.61		347,939		290,723		3.31
Colombian pesos		283,283		241,991		2.38		112,565		74,269		3.77		112,565		73,899		3.58
Mexican pesos		254,725		219,228		3.64		98,108		67,003		3.88		98,108		63,701		3.61
Turkish lira		64,467		36,425		3.63		134,587		92,075		1.83		134,555		98,898		1.39
Indonesian Rupee		75,000		70,984		2.02		—		—		—		—		—		—
Brazilian Real		68,701		56,805		2.38		68,701		66,475		1.62		—		—		—
South African rand		37,773		40,881		2.79		60,372		68,135		1.85		60,362		61,378		1.41
Indian Rupee		31,891		30,572		2.59		31,891		33,473		1.92		—		—		—
Canadian dollars		30,395		29,295		3.19		30,395		31,822		2.42		—		—		—
Peruvian nuevos soles		53,378		52,476		4.44		7,489		7,585		1.85		14,943		14,583		1.60
		22,321,777		21,443,079				19,781,020		19,294,820				18,073,474		16,709,708
Fair value adjustments				195,441						446,762						462,216
Less debt issuance costs				18,427						22,955						26,618
Carrying value of bonds				21,620,093						19,718,627						17,145,306

F-26

A summary of the bonds issued, by remaining maturities at original exchange rate, follows:

	December 31,
	2018		2017		2016
Remaining maturities:
Less than one year		2,291,645		2,311,200		2,080,201
Between one and two years		3,906,435		2,336,118		2,290,870
Between two and three years		3,154,929		2,926,163		2,366,440
Between three and four years		2,685,947		2,644,380		1,607,932
Between four and five years		3,202,716		2,685,564		2,537,642
Over five years		7,080,105		6,877,595		7,190,389
		22,321,777		19,781,020		18,073,474

At December 31, 2018, 2017 and 2016, fixed interest rate bonds amounted to US$ 22,229,968, US$ 19,683,812 and US$ 17,801,069, respectively, of which US$ 13,095,772, US$ 11,684,716 and US$ 10,286,532, respectively, are denominated in other currencies.

There were no bonds repurchased during the years ended December 31, 2018, 2017 and 2016.

14. ACCRUED EXPENSES AND OTHER LIABILITIES

A summary of accrued expenses and other liabilities follows:

	December 31,
	2018		2017		2016
Employees severance benefits and savings plan		82,273		77,993		82,241
Contributions to Stockholders’ Special Funds		36,872		36,967		22,500
Provision for contingencies		1,414		1,490		2,607
Derivative-related collateral		—		139,397		187
Other		3,069		9,018		7,087
		123,628		264,865		114,622

15. PENSION PLAN

At December 31, 2018, 2017 and 2016, the Plan has 576, 584 and 568 participants and active employees, respectively. The date used to determine pension plan benefit obligation is December 31, of each year.

For the years ended December 31, 2018, 2017 and 2016, a reconciliation of beginning and ending balances of the benefit obligation follows:

	2018			2017			2016
Change in benefit obligation:
Benefit obligation at beginning of year		21,526			18,763			14,002
Service cost		2,518			2,225			1,715
Interest cost		850			794			594
Plan participants’ contributions		1,812			1,813			1,600
Actuarial (gain) loss		(443	)		(248	)		1,177
Benefit paid		(2,471	)		(1,821	)		(325	)
Benefit obligation at end of year		23,792			21,526			18,763

F-27

For the years ended December 31, 2018, 2017 and 2016, a reconciliation of beginning and ending balances of the fair value of plan assets follows:

	2018			2017			2016
Change in plan assets:
Fair value of plan assets at beginning of year		21,509			17,201			13,431
Actual return on plan assets		987			440			325
Contributions		4,129			5,689			3,770
Benefit paid		(2,471	)		(1,821	)		(325	)
Fair value of plan assets at end of year		24,154			21,509			17,201

Plan assets are as follows:

	December 31,
	2018		2017		2016
Plan assets:
Deposits with banks		24,154		21,509		17,201

The table below summarizes the component of the periodic cost of projected benefits related to the PBO for the years ended December 31, 2018, 2017 and 2016:

	2018			2017			2016
Service cost		2,518			2,225			1,715
Interest cost		850			794			594
Expected return on plan assets		(860	)		(258	)		(201	)
		2,508			2,761			2,108

A summary of the net projected cost for the year ending December 31, 2019 follows:

Service cost:
Contributions to the plan	1,866
Guaranteed benefit	744
	2,610
Interest cost	945
Expected return on plan assets	(959	)
	2,596

A summary of the benefits that are expected to be paid for the next five years follows:

2019	361
2020	132
2021	323
2022	425
2023	810

Weighted-average assumptions used to determine net benefit cost since the origination of the Plan to December 31, 2018, 2017 and 2016 follows:

	2018			2017			2016
Discount rate		4	%		4	%		4	%
Expected long-term nominal rate return on Plan assets		4	%		1.5	%		1.5	%
Salary increase rate		3	%		3	%		3	%

F-28

16. STOCKHOLDERS’ EQUITY

Authorized capital

The authorized capital of CAF at December 31, 2018, 2017 and 2016 amounts to US$ 15,000,000, of which US$ 10,000,000 is ordinary capital shares and US$ 5,000,000 is callable capital shares, distributed among Series “A”, “B” and “C” shares.

Additional paid-in capital

The additional paid-in capital is the amount paid by Series “B” and Series “C” stockholders in excess of the par value. The additional paid-in capital of CAF at December 31, 2018, 2017 and 2016 amounts to US$ 3,595,133, US$ 3,259,471 and US$ 2,890,091, respectively.

Subscribed callable capital

The payment of subscribed callable capital will be as required, with prior resolution 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:

(i)    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, Trinidad and Tobago, 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.

(ii)    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, Trinidad and Tobago, Uruguay and Venezuela. Each of these shares grants the right of representation on CAF’s Board of Directors to one principal director and one alternate director for each of the following countries: Bolivia, Colombia, Ecuador, Peru and Venezuela. In addition, 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.

(iii)    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, 2018, 2017 and 2016 follows:

	Number of Shares							Nominal Amounts
	Series “A”		Series “B”		Series “C”			Series “A”		Series “B”		Series “C”			Total
At December 31, 2015		10		802,090		93,765			12,000		4,010,450		468,825			4,491,275
Issued for cash		1		56,224		1,990			1,200		281,120		9,950			292,270
Transfer of shares		—		23,457		(23,457	)		—		117,285		(117,285	)		—
At December 31, 2016		11		881,771		72,298			13,200		4,408,855		361,490			4,783,545
Issued for cash		—		31,723		8,427			—		158,615		42,135			200,750
At December 31, 2017		11		913,494		80,725			13,200		4,567,470		403,625			4,984,295
Issued for cash		—		32,717		3,768			—		163,585		18,840			182,425
At December 31, 2018		11		946,211		84,493			13,200		4,731,055		422,465			5,166,720

F-29

Subscribed and paid-in capital at December 31, 2018 is as follows:

	Number of Shares						Nominal Amounts
	Series “A”		Series “B”		Series “C ”		Series “A”		Series “B”		Series “C”		Total
Stockholder:
Argentina		1		100,404		—		1,200		502,020		—		503,220
Bolivia		1		55,058		—		1,200		275,290		—		276,490
Brazil		1		89,270		—		1,200		446,350		—		447,550
Colombia		1		176,825		—		1,200		884,125		—		885,325
Ecuador		1		55,379		—		1,200		276,895		—		278,095
Panama		1		30,491		—		1,200		152,455		—		153,655
Paraguay		1		30,011		—		1,200		150,055		—		151,255
Peru		1		184,417		—		1,200		922,085		—		923,285
Trinidad & Tobago		1		23,457		—		1,200		117,285		—		118,485
Uruguay		1		31,724		—		1,200		158,620		—		159,820
Venezuela		1		168,678		—		1,200		843,390		—		844,590
Barbados		—		—		3,522		—		—		17,610		17,610
Chile		—		—		5,541		—		—		27,705		27,705
Costa Rica		—		—		3,291		—		—		16,455		16,455
Dominican Republic		—		—		8,795		—		—		43,975		43,975
Jamaica		—		—		182		—		—		910		910
Mexico		—		—		15,367		—		—		76,835		76,835
Portugal		—		—		1,770		—		—		8,850		8,850
Spain		—		—		46,025		—		—		230,125		230,125
Commercial banks		—		497		—		—		2,485		—		2,485
		11		946,211		84,493		13,200		4,731,055		422,465		5,166,720

At December 31, 2018, the detail of unpaid subscribed capital and 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		31,120		155,600		—		—		25,200		126,000		—		—
Bolivia		9,736		48,680		—		—		14,400		72,000		—		—
Brazil		38,873		194,365		—		—		25,200		126,000		—		—
Colombia		39,576		197,880		—		—		50,400		252,000		—		—
Ecuador		9,736		48,680		—		—		14,400		72,000		—		—
Panama		9,736		48,680		—		—		7,200		36,000		—		—
Paraguay		9,736		48,680		—		—		7,200		36,000		—		—
Pero		32,418		162,090		—		—		50,400		252,000		—		—
Trinidad y Tobago		—		—		—		—		7,200		36,000		—		—
Uruguay		9,736		48,680		—		—		7,200		36,000		—		—
Venezuela		48,156		240,780		—		—		50,400		252,000		—		—
Barbados		—		—		—		—		—		—		—		—
Chile		—		—		—		—		—		—		800		4,000
Dominican Republic		—		—		1,761		8,805		—		—		—		—
Mexico		—		—		—		—		—		—		1,600		8,000
Portugal		—		—		150		750		—		—		16,332		81,660
Spain		—		—		5,914		29,570		—		—		40,000		200,000
Commercial banks		—		—		—		—		—		—		—		—
		238,823		1,194,115		7,825		39,125		259,200		1,296,000		58,732		293,660

F-30

Subscribed and paid-in capital at December 31, 2017 is as follows:

	Number of Shares						Nominal Amounts
	Series “A”		Series “B”		Series “C”		Series “A”		Series “B”		Series “C”		Total
Stockholder
Argentina		1		94,179		—		1,200		470,895		—		472,095
Bolivia		1		52,624		—		1,200		263,120		—		264,320
Brazil		1		87,858		—		1,200		439,290		—		440,490
Colombia		1		169,364		—		1,200		846,820		—		848,020
Ecuador		1		52,945		—		1,200		264,725		—		265,925
Panama		1		28,057		—		1,200		140,285		—		141,485
Paraguay		1		27,577		—		1,200		137,885		—		139,085
Peru		1		179,014		—		1,200		895,070		—		896,270
Trinidad & Tobago		1		23,457		—		1,200		117,285		—		118,485
Uruguay		1		29,290		—		1,200		146,450		—		147,650
Venezuela		1		168,678		—		1,200		843,390		—		844,590
Barbados		—		—		3,522		—		—		17,610		17,610
Chile		—		—		5,541		—		—		27,705		27,705
Costa Rica		—		—		3,291		—		—		16,455		16,455
Dominican Republic		—		—		7,915		—		—		39,575		39,575
Jamaica		—		—		182		—		—		910		910
Mexico		—		—		15,367		—		—		76,835		76,835
Portugal		—		—		1,470		—		—		7,350		7,350
Spain		—		—		43,437		—		—		217,185		217,185
Commercial banks		—		451		—		—		2,255		—		2,255
		11		913,494		80,725		13,200		4,567,470		403,625		4,984,295

At December 31, 2017, 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		37,345		186,725				—		25,200		126,000		—		—
Bolivia		12,170		60,850		—		—		14,400		72,000		—		—
Brazil		40,285		201,425		—		—		25,200		126,000		—		—
Colombia		47,037		235,185		—		—		50,400		252,000		—		—
Ecuador		12,170		60,850		—		—		14,400		72,000		—		—
Panama		12,170		60,850		—		—		7,100		36,000		—		—
Paraguay		12,170		60,850		—		—		7,200		36,000		—		—
Peru		37,821		189,105		—		—		50,400		252,000		—		—
Trinidad y Tobago		—		—		—		—		7,200		36,000		—		—
Uruguay		12,170		60,850		—		—		7,100		36,000		—		—
Venezuela		48,156		240,780		—		—		50,400		252,000		—		—
Barbados		—		—		—		—		—		—		—		—
Chile		—		—		—		—		—		—		800		4,000
Dominican Republic		—		—		2,641		13,205		—		—		—		—
Mexico		—		—		—		—		—		—		1,600		8,000
Portugal		—		—		—		—		—		—		16,332		81,660
Spain		—		—		8,502		42,510		—		—		40,000		200,000
Commercial banks		46		230		—		—		—		—		—		—
		271,540		1,357,700		11,143		55,715		259,200		1,296,000		58,732		293,660

F-31

Subscribed and paid-in capital at December 31, 2016 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		88,423		—		1,200		442,115		—		443,315
Bolivia		1		50,003		—		1,200		250,015		—		251,215
Brazil		1		85,042		—		1,200		425,210		—		426,410
Colombia		1		163,894		—		1,200		819,470		—		820,670
Ecuador		1		50,324		—		1,200		251,620		—		252,820
Panama		1		23,676		—		1,200		118,380		—		119,580
Paraguay		l		23,938		—		1,200		119,690		—		120,890
Peru		1		176,550		—		1,200		882,750		—		883,950
Trinidad & Tobago		1		23,457		—		1,200		117,285		—		118,485
Uruguay		1		27,374		—		1,200		136,870		—		138,070
Venezuela		1		168,678		—		1,200		843,390		—		844,590
Barbados		—		—		3,522		—		—		17,610		17,610
Chile		—		—		5,541		—		—		27,705		27,705
Costa Rica		—		—		3,291		—		—		16,455		16,455
Dominican Republic		—		—		6,796		—		—		33,980		33,980
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
Commercial banks		—		412		—		—		2,060		—		2,060
		11		881,771		72,298		13,200		4,408,855		361,490		4,783,545

F-32

At December 31, 2016, 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		2,816		14,080		—		—		25,200		126,000		—		—
Bolivia		14,791		73,955		—		—		14,400		72,000		—		—
Brazil		2,816		14,080		—		—		25,200		126,000		—		—
Colombia		52,507		262,535		—		—		50,400		252,000		—		—
Ecuador		14,791		73,955		—		—		14,400		72,000		—		—
Panama		16,551		82,755		—		—		7,200		36,000		—		—
Paraguay		2,428		12,140		—		—		7,200		36,000		—		—
Peru		—		—		—		—		50,400		252,000		—		—
Trinidad y Tobago		—		—		—		—		7,200		36,000		—		—
Uruguay		14,086		70,430		—		—		7,200		36,000		—		—
Venezuela		48,156		240,780		—		—		50,400		252,000		—		—
Barbados		—		—		—		—		—		—		—		—
Chile		—		—		—		—		—		—		800		4,000
Dominican Republic		—		—		239		1,195		—		—		—		—
Mexico		—		—		—		—		—		—		1,600		8,000
Portugal		—		—		—		—		—		—		16,332		81,660
Spain		—		—		—		—		—		—		40,000		200,000
Commercial banks		69		345		—		—		—		—		—		—
		169,011		845,055		239		1,195		259,200		1,296,000		58,732		293,660

General Reserve

CAF maintains a general reserve approved by the Stockholders’ Assembly, which is considered an equity reserve. Stockholders approved the increase in the general reserve by US$ 68,699, US$ 110,218 and US$ 69,830 during the years ended December 31, 2018, 2017 and 2016, through appropriations from net income for the years ended December 31, 2017, 2016 and 2015, respectively.

Reserve Pursuant to Article 42 of the Constitutive Agreement

CAF’s Constitutive Agreement states that at least 10% of annual net income should be appropriated into a reserve fund until that reserve fund amounts to 50% of the subscribed capital. That reserve fund is considered an equity reserve. Additional appropriation may be approved by the stockholders. The Stockholders’ Assembly held in March 2018, 2017 and 2016, authorized an increase in the reserve fund for US$ 7,700, US$ 12,500 and US$ 7,800, through an appropriation from net income for the years ended December 31, 2017, 2016 and 2015, respectively.

F-33

17. ACCUMULATED OTHER COMPREHENSIVE INCOME

Accumulated other comprehensive income balances and the amounts reclassified out of accumulated other comprehensive income and into net income were as follows:

	December 31,
	2018		2017			2016
Balances at beginning of the year		—		(1,563	)		(571	)
Unrecognized changes in assets/ liabilities under benefit pension plan		—		—			(1,563	)
Amortization of defined benefit pension items (1)		—		1,563			571
Balances at end of year		—		—			(1,563	)

(1) This other comprehensive income component is included in the statements of comprehensive income.

18. TAX EXEMPTIONS

Pursuant to its Constitutive Agreement CAF is exempt, in all of its Member Countries, from all taxes on income, properties and other assets as well as from any liability related to the payment, withholding or collection of any taxes. The term “Member Country” is defined in Article 3 of CAF’s General Regulations as any shareholder country holding at least one Series “A” share that, either is a signatory to the Constitutive Agreement or, being of Latin America or the Caribbean, has adhered to it. At December 2018, the Member Countries are Argentina, Bolivia, Brazil, Colombia, Ecuador, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay and Venezuela.

CAF has entered into bilateral agreements with its other shareholder countries providing for tax exemptions substantially similar to those granted to it by the Member Countries.

19. 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.

The market risk associated with interest rate and foreign currency risk is managed by swapping marketable securities — trading, loans, borrowings and bonds, 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 to offset the economic changes in value of specifically identified marketable securities — trading, loans, borrowings and bonds.

Derivative financial instruments held by CAF consist of interest rate swaps designated as fair value hedges of specifically identified loans, bonds or borrowings with fixed interest rates and denominated in U.S. dollars. Also, CAF enters into cross-currency and interest rate swaps as an economic hedge (derivative that is entered into to manage a risk but is not accounted as a hedge) for interest rate and foreign exchange risks related with marketable securities — trading, bonds, borrowings or loans denominated in currencies other than the U.S. dollar where CAF’s management elected to measure those liabilities and assets at fair value under the fair value option guidance.

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.

In order to 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 marked-to-market, and the party being the net obligor is required to post collateral when net mark to-market exposure exceeds certain predetermined thresholds. This collateral is in the form of cash.

F-34

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.

CAF also utilizes futures derivatives instruments to reduce exposure to price risk. These 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. Additionally, CAF utilizes forward contracts to reduce exposure to foreign currency risk.

The balance sheet details related to CAF’s derivative financial instruments are as follows:

	Derivative assets						Derivative liabilities
	December 31,						December 31,
	2018		2017		2016		2018		2017		2016
Cross-currency swap		152,018		495,694		56,238		733,232		458,576		942,965
Interest rate swap		31,978		31,272		61,657		134,624		94,912		78,076
U.S. Treasury futures		657		5,488		318		8,696		35		26
Cross-currency forward contracts		152		214		140		232		71		225
		184,805		532,668		118,353		876,784		553,594		1,021,292

F-35

The following table presents the notional amount and fair values of interest rate swaps and cross-currency swaps and the underlying hedged items:

	Notional amount				Fair value
	Interest rate swap		Cross- currency swap		Derivative assets		Derivative liabilities
At December 31, 2018:
Loans		68,752		—		826		411
Loans		—		6,333		620		—
Borrowings		—		108,097		89		—
Borrowings		366,538		—		1,467		6,183
Bonds		—		13,095,772		151,309		733,232
Bonds		9,049,096		—		29,685		128,030
		9,484,386		13,210,202		183,996		867,856
At December 31, 2017:
Marketable securities — Trading		—		29,982		438		707
Loans		39,741		—		266		302
Loans		—		12,000		5		210
Borrowings		—		112,900		8,889		—
Borrowings		429,534		—		4,718		4,055
Bonds		—		11,684,716		486,362		457,659
Bonds		7,914,096		—		26,288		90,555
		8,383,371		11,839,598		526,966		553,488
At December 31, 2016:
Marketable securities — Trading		—		29,982		476		452
Loans		21,495		—		290		8
Loans		—		15,000		—		151
Borrowings		—		112,900		—		7,822
Borrowings		425,336		—		7,115		3,057
Bonds		—		10,286,532		55,762		934,540
Bonds		7,353,173		—		54,252		75,011
		7,800,004		10,444,414		117,895		1,021,041
		5,065,805		5,909,565		417,414		182,824

The following table presents the notional amount and fair values of U.S. treasury futures and cross-currency forward contracts:

At December 31, 2018

									Fair value
	Start date		Termination date		Contract Currency		Notional amount		Derivative assets
Forward contracts		Various		Until Mar 2019		Various		15,603		152
Futures long		Various		Until Mar 2019		Various		103,600		657
									Fair value
	Start date		Termination date		Contract Currency		Notional amount		Derivative liabilities
Forward contracts		Various		Various		Various		24,572		(232	)
Futures short		Various		Until Mar 2019		Various		1,336,600		(8,696	)

F-36

At December 31, 2017

									Fair value
	Start date		Termination date		Contract Currency		Notional amount		Derivative assets
Forward contracts		Various		Until January 2018		Various		65,915		214
Futures short		Various		Until March 2018		Various		1,184,598		5,488
									Fair value
	Start date		Termination date		Contract Currency		Notional amount		Derivative liabilities
Forward contracts		Various		Until March 2018		Various		65,771		(71	)
Futures long		Various		Until March 2018		USD		19,800		(35	)

At December 31, 2016

									Fair value
	Start date		Termination date		Contract Currency		Notional amount		Derivative assets
Forward contracts		Various		Until January 2017		Various		43,593		140
Futures short		Various		Until March 2017		Various		1,177,200		318

									Fair value
	Start date		Termination date		Contract Currency		Notional amount		Derivative liabilities
Forward contracts		Various		Until January 2017		Various		43,680		(225	)
Futures long		Various		Until March 2017		Various		21,200		(26	)

The amounts of collateral posted related to futures at December 31, 2018, 2017 and 2016, were US$ 13,690, US$ 9,080 and US$ 20,059, respectively. The amounts of collateral received related to futures at December 31, 2017 was US$ 397. At December 31, 2016, there were no collateral received.

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 effect of offsetting of derivative financial instruments, although CAF has elected not to offset any derivative financial instruments by counterparty in the balance sheet:

At December 31, 2018
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		183,996			(183,974	)		—		22
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		(867,856	)		183,974			722,265		38,383

F-37

At December 31, 2017

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		526,966			(331,368	)		(139,000	)		56,598
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		(553,488	)		331,368			408,467			186,347

At December 31, 2016

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		117,895			(117,467	)		—		428
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		(1,021,041	)		117,467			884,843		(18,731	)

20. 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 financial instrument is classified. Where appropriate, the description includes details of the valuation methodologies and the key inputs to those methodologies.

When available, CAF generally uses quoted prices in active markets to determine fair value.

If quoted market prices in active markets are not available, fair value is based upon internally developed valuation methodologies that use, where possible, current market-based or independently sourced market inputs, such as interest rates, currency rates, etc.

Where available, CAF may also make use of quoted prices in active markets for recent trading activity in positions with the same or similar characteristics to the financial instrument being valued. The frequency and size of trading activity and the amount of the bid-ask spread are among the factors considered in determining the liquidity of markets and the relevance of observed quoted prices from those markets.

The following valuation methodologies are used to estimate the fair value and determine the classification in the fair value hierarchy of CAF’s financial instruments:

• Marketable securities: CAF uses quoted prices in active markets to determine the fair value of trading securities. These securities are classified in Level 1 of the fair value hierarchy.

F-38

• Loans: The fair value of fixed rate loans, is determined using a discounted cash flow technique 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 financial instruments 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 an independent financial information services company, which are determined based on discounted cash flows using observable inputs. 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 by using a discounted cash flow 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 fluctuations of key variables such as interest and exchange rates. These yield curves are adjusted to incorporate CAF credit risk spread. Bonds and borrowings are generally classified in Level 2 of the fair value hierarchy based on the observability of significant inputs to the discounted cash flow technique.

During 2018, 2017 and 2016, there were no transfers between levels 1, 2 and 3.

F-39

Items Measured at Fair Value on a Recurring Basis

The following tables present for each of the fair value hierarchy levels CAF’s financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2018, 2017 and 2016:

At December 31, 2018

	Level 1		Level 2		Level 3		Total
Assets:
Marketable Securities:
U.S. Treasury Notes		1,799,690		—		—		1,799,690
Non-U.S. governments and government entities bonds		243,581		—		—		243,581
Financial institutions and corporate securities:
Commercial paper		3,371,479		—		—		3,371,479
Certificate of deposits		1,707,010		—		—		1,707,010
Bonds		1,856,325		—		—		1,856,325
Collateralized mortgage obligation		352,643		—		—		352,643
Liquidity funds		324,228		—		—		324,228
		7,611,685		—		—		7,611,685
Sub-total financial assets at fair value		9,654,956		—		—		9,654,956
Loans		—		74,402		—		74,402
Derivative instruments:
Cross-currency swap		—		152,018		—		152,018
Interest rate swap		—		31,978		—		31,978
U.S Treasury futures		—		657		—		657
Cross-currency forward contracts		—		152		—		152
		—		184,805		—		184,805
Total financial assets at fair value		9,654,956		259,207		—		9,914,163
Liabilities:
Borrowings		—		470,220		—		470,220
Bonds		—		21,461,610		—		21,461,610
Derivative instruments:
Cross-currency swap		—		733,232		—		733,232
Interest rate swap		—		134,624		—		134,624
U.S Treasury futures		—		8,696		—		8,696
Cross-currency forward contracts		—		232		—		232
		—		876,784		—		876,784
Total financial liabilities at fair value		—		22,808,614		—		22,808,614

F-40

At December 31, 2017

	Level 1		Level 2		Level 3		Total
Assets:
Marketable Securities:
U.S. Treasury Notes		1,588,857		—		—		1,588,857
Non-U.S. governments and government entities bonds		106,812		—		—		106,812
Financial institutions and corporate securities:
Commercial paper		3,146,896		—		—		3,146,896
Certificate of deposits		2,065,830		—		—		2,065,830
Bonds		1,605,236		—		—		1,605,236
Collateralized mortgage obligation		375,733		—		—		375,733
Liquidity funds		305,627		—		—		305,627
		7,499,322		—		—		7,499,322
Sub-total financial assets at fair value		9,194,991		—		—		9,194,991
loans		—		49,007		—		49,007
Derivative instruments:
Cross-currency swap		—		495,694		—		495,694
Interest rate swap		—		31,272		—		31,272
U.S Treasury futures		—		5,488		—		5,488
Cross-currency forward contracts		—		214		—		214
		—		532,668		—		532,668
Total financial assets at fair value		9,194,991		581,675		—		9,776,666
Liabilities:
Borrowings		—		550,563		—		550,563
Bonds		—		19,559,372		—		19,559,372
Derivative instruments:
Cross-currency swap		—		458,576		—		458,576
Interest rate swap		—		94,912		—		94,912
U.S Treasury futures		—		35		—		35
Cross-currency forward contracts		—		71		—		71
		—		553,594		—		553,594
Total financial liabilities at fair value		—		20,663,529		—		20,663,529

F-41

At December 31, 2016

	Level 1		Level 2		Level 3		Total
Assets:
Marketable Securities:
U.S. Treasury Notes		1,867,916		—		—		1,867,916
Non-U.S. governments and government entities bonds		236,945		—		—		236,945
Financial institutions and corporate securities:
Commercial paper		3,005,618		—		—		3,005,618
Certificate of deposits		2,257,292		—		—		2,257,292
Bonds		1,233,530		—		—		1,233,530
Collateralized mortgage obligation		336,041		—		—		336,041
Liquidity funds		330,611		—		—		330,611
		7,163,092		—		—		7,163,092
Sub-total financial assets at fair value		9,267,953		—		—		9,267,953
Loans		—		37,196		—		37,196
Derivative instruments:
Interest rate swap		—		61,657		—		61,657
Cross-currency swap		—		56,238		—		56,238
U.S Treasury futures		—		318		—		318
Cross-currency forward contracts		—		140		—		140
		—		118,353		—		118,353
Total financial assets at fair value		9,267,953		155,549		—		9,423,502
Liabilities:
Borrowings		—		535,514		—		535,514
Bonds		—		16,738,156		—		16,738,156
Derivative instruments:
Interest rate swap		—		78,076		—		78,076
Cross-currency swap		—		942,965		—		942,965
U.S Treasury futures		—		26		—		26
Cross-currency forward contracts		—		225		—		225
		—		1,021,292		—		1,021,292
Total financial liabilities at fair value		—		18,294,962		—		18,294,962

F-42

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:

			December 31,
			2018				2017				2016
	Hierarchy Levels		Carrying amount		Estimated fair value		Carrying amount		Estimated fair value		Carrying amount		Estimated fair value
Financial assets:
Cash and due from banks		1		127,355		127,355		61,294		61,294		72,403		72,403
Deposits with banks		1		2,594,312		2,594,312		2,001,766		2,001,766		1,652,367		1,652,367
Other investments		1		658,750		658,750		1,453,869		1,453,869		996,554		996,554
Loans, net		2		24,869,314		24,871,974		23,414,311		23,415,830		21,780,453		21,784,619
Accrued interest and commissions receivable		2		523,098		523,098		427,702		427,702		345,115		345,115
Derivate related collateral		1		735,955		735,955		417,547		417,547		904,902		904,902
Financial liabilities:
Deposits		2		3,210,545		3,210,545		2,950,143		2,950,143		3,098,883		3,098,883
Commercial paper		2		641,295		641,295		1,770,676		1,770,676		2,112,717		2,112,717
Borrowings, net		2		814,049		817,727		866,702		867,601		885,952		888,029
Bonds, net		2		158,483		159,131		159,255		160,037		407,150		408,140
Accrued interest payable		2		394,232		394,232		314,660		314,660		281,058		281,058
Derivate related collateral		1		—		—		139,397		139,397		187		187

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, accrued interest payable, derivate related collateral, receivable from investment securities sold and payable for investment securities purchased: 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 by 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 elected a practical expedient exception to fair value measurement on its direct investments in equity securities of companies without a readily determinable fair value under ASU 2016-01 and measured those investments at cost, less impairment plus or minus observable price changes of an identical or similar instrument of the same issuer. At December 31, 2018, the carrying amount of those investments was US$ 57,983, and the effects of the impairment were recognized in the statements of comprehensive income and the changes in observable prices were not material to the financial statements. In addition, as of December 31, 2018, investments in funds without a readily determinable fair value, with carrying amount of US$ 378,174, are accounted for at fair value applying the practical expedient, using the net asset value per share or unit.

CAF’s equity investments in other entities accounted for at cost reached US$ 397,357 and US$ 348,179 at December 31, 2017 and 2016, did not have available market price quotations and it was impracticable to determine the fair value of these investments without incurring excessive cost.

• Bonds and borrowings: For CAF’s bonds issued and medium and long term borrowings, fair value is determined using a discounted cash flow technique, taking into consideration yield curves to discount the expected cash flows for the applicable maturity, thus reflecting the fluctuation of variables such as

F-43

interest and exchange rates. These yield curves are adjusted to incorporate CAF credit risk spread. Those financial instrument are generally classified in Level 2 of the fair value hierarchy based on the observability of significant inputs to the valuation methodology.

During 2018, 2017 and 2016, there were no transfers between levels 1, 2 and 3.

21. GAIN (LOSSES) ON CHANGES IN FAIR VALUE RELATED TO FINANCIAL INSTRUMENTS

The gains (losses) on changes in fair value of marketable securities—trading, cross-currency swaps and financial liabilities carried at fair value under the fair value option are as follows:

	Year ended December 31, 2018
	Gain (loss) on derivatives			Gain (loss) on hedged item			Net gain (loss)
Cross-currency swaps:
Marketable securities—trading		268			(664	)		(396	)
Bonds		(610,626	)		609,740			(886	)
Loans		826			2,503			3,329
Borrowings		(8,800	)		7,165			(1,635	)
		(618,332	)		618,744			412

	Year ended December 31, 2017
	Gain (loss) on derivatives			Gain (loss) on hedged item			Net gain (loss)
Cross-currency swaps:
Marketable securities—trading		(293	)		(303	)		(596	)
Bonds		907,482			(905,616	)		1,866
Loans		(55	)		(3,754	)		(3,809	)
Borrowings		16,711			(14,246	)		2,465
		923,845			(923,919	)		(74	)

	Year ended December 31, 2016
	Gain (loss) on derivatives			Gain (loss) on hedged item		Net Gain (loss)
Cross-currency swaps:
Marketable securities—trading		24			967		991
Bonds		(176,885	)		168,930		(7,955	)
Loans		(3,197	)		3,287		90
Borrowings		(3,684	)		3,239		(445	)
		(183,742	)		176,423		(7,319	)

In addition, during the years ended December 31, 2018, 2017 and 2016, CAF recorded net gains of US$ 92, US$ 4,375 and losses of US$ 6,130, respectively, related to changes in fair value of futures and forwards and changes in fair value of the U.S. Treasury Notes.

F-44

22. COMMITMENTS AND CONTINGENCIES

Commitments and contingencies include the following:

	December 31,
	2018		2017		2016
Loan commitments subscribed — eligibles		4,884,248		5,448,998		5,622,081
Lines of credit		4,014,161		3,593,234		4,104,214
Loan commitments subscribed — non eligibles		1,822,170		1,464,000		1,896,500
Guarantees		165,294		176,642		185,435
Equity investments agreements subscribed		133,582		167,182		224,185
Letters of credit		1,168		3,754		12,050

These commitments and contingencies arose 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 loan commitments are reported in the above table upon signing the corresponding loan agreement and are reported as loans in the balance sheets 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 a loan being disbursed. Therefore, the amounts of total commitment to extend loans do not necessarily represent future cash requirements. Also, based on experience, portions of the loan commitments are disbursed on average two years after the signing of the loan agreement.

The lines of credit are extended to financial and corporate institutions as a facility to grant short term loans basically to finance working capital and international trade activities.

Guarantees mature as follows:

	December 31,
	2018		2017		2016
Less than one year		21,670		17,391		8,047
Between one and two years		—		15,000		32,582
Between three and five years		34,649		—		—
Over five years		108,975		144,251		144,806
		165,294		176,642		185,435

To the best knowledge of CAF’s management, CAF is not involved 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.

23. ADMINISTRATIVE EXPENSES

For the years ended December 31, 2018, 2017 and 2016, the details of administrative expenses are as follows:

	2018		2017		2016
Salaries and employee benefits		106,405		101,710		91,763
Professional fees, seminars and other expenses		20,394		18,799		21,448
Logistics and infrastructure		17,423		17,300		16,389
Telecommunications and technology		14,066		12,326		11,373
		158,288		150,135		140,973

F-45

24. 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, created to promote technical and financial cooperation, sustainable human development, and management of poverty relief funds in stockholder countries.

The stockholders’ 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. The stockholders’ 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 Stockholders’ Assembly of CAF approves a maximum amount to be contributed to stockholders’ special funds during the fiscal year and to recognize these contributions as expenses. The Executive President by delegation of the Stockholders’ Assembly of CAF may authorize, up to the maximum approved amount, the amounts that will be contributed during the current period, based on the analysis of the new commitments contracted or the resources required by the stockholders’ special funds.

The resources of the stockholders’ special funds, that come from a contribution by CAF, 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 stockholders’ special funds, the financial responsibility of CAF, as administrator, is limited to the net assets of each of the constituted stockholders’ special funds. CAF has no residual interest in the net assets of the stockholders’ special funds.

In March 2018, the Stockholders’ Assembly of CAF approved the contribution up to a maximum amount of US$ 92,000 to some stockholders’ special funds for the year ended December 31, 2018. Subsequently, during the year ended December 31, 2018, the Executive President directly or by delegation, based on the analysis of the new commitments contracted or the resources required by the stockholders’ special funds, authorized the contributions of US$ 70,000, US$ 16,743, and US$ 1,087 to Compensatory Financing Fund (FFC), Technical Cooperation Fund (FCT), and Human Development Fund (FONDESHU), respectively. For the year ended December 31, 2018, CAF recognized US$ 87,830 as an expense and, at December 31, 2018 recognized an unconditional obligation (accounts payable) for US$ 36,872 which was paid in January 2019.

In March 2017, the Stockholders’ Assembly of CAF approved the contribution up to a maximum amount of US$ 92,064 to some stockholders’ special funds for the year ended December 31, 2017. Subsequently, during the year ended December 31, 2017, the Executive President directly or by delegation, based on the analysis of the new commitments contracted or the resources required by the stockholders’ special funds, authorized the contributions of US$ 68,000, US$ 22,064 and US$ 2,000 to FFC, FCT and FONDESHU, respectively. For the year ended December 31, 2017, CAF recognized US$ 92,064 as an expense and, at December 31, 2017 recognized an unconditional obligation (accounts payable) for US$ 36,967 which was paid in January 2018.

In March 2016, the Stockholders’ Assembly of CAF approved the contribution up to a maximum amount of US$ 72,000 to some stockholders’ special funds for the year ended December 31, 2016. Subsequently, the Executive President directly or by delegation based on the analysis of the new commitments contracted or the resources required by the stockholders’ special funds authorized the contributions of US$ 36,000, US$ 20,000, US$ 10,000 and US$ 2,000 to FFC, FCT, FONDESHU, Fund for the Development of Small and Medium Enterprise (FIDE), respectively. For the year ended December 31, 2016, CAF recognized US$ 68,000 as an expense and at December 31, 2016 recognized an unconditional obligation (accounts payable) for US$ 22,500 which was paid in January 2017.

F-46

At December 31, 2018, 2017 and 2016, managed funds net assets are US$ 428,787, 408,258 and US$ 418,536, respectively. The balances of these funds are as follows:

	December 31.
	2018		2017		2016
Compensatory Financing Fund (FFC) (1)		255,999		247,259		258,343
Fund for the Development of Small and Medium Enterprises (FIDE)		61,430		61,827		62,526
Technical Cooperation Fund (FCT)		48,248		45,844		42,839
Human Development Fund (FONDESHU)		8,875		9,496		10,186
Latin american Carbon, Clean Alternative Energies Progam (PLAC)		—		—		5,712
Others non related with stockholders’ special funds		54,235		43,832		38,930

(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, 2018, 2017 and 2016, FFC compensated interest amounting to US$ 83,932, US$ 82,765 and US$ 75,460, respectively, which amounts are included in interest income — loans in the statements of comprehensive income.

25. SEGMENT REPORTING

Management has determined that CAF has only one operating and 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 on the basis of 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, 2018, 2017 and 2016, loans made to or guaranteed by four countries individually generated in excess, of 10% of interest income on loans, as follows:

	2018		2017		2016
Argentina		150,099		110,364		92,253
Ecuador		149,204		121,071		100,268
Venezuela		146,693		115,277		96,861
Bolivia		112,655		86,807		67,749
		558,651		433,519		357,131

26. SUBSEQUENT EVENTS

Management has evaluated subsequent events through February 15, 2019, 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 these financial statements for the year ended December 31, 2018, except for:

• On January 30, 2019, CAF issued bonds for EUR 750,000,000, 0.625% due 2024, under its Medium Term Notes Programme.

• On February 11, 2019, CAF issued bonds for US$ 1,250,000,000, 3.250% due 2022, under its registration statement filed with the U.S. Securities and Exchange Commission.

F-47

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Unaudited Condensed Interim Balance Sheets

As of March 31, 2019 and December 31, 2018

(In thousands of U.S. dollars)

	NOTES		March 31, 2019		December 31, 2018
ASSETS
Cash and due from banks				180,061		127,355
Deposits with banks				3,037,266		2,594,312
Cash and deposits with banks				3,217,327		2,721,667
Marketable securities:
Trading		3 and 14		10,346,120		9,654,956
Other investments				887,719		658,750
Loans (US$ 73,230 and US$ 74,402 at fair value as of March 31, 2019 and December 31, 2018)		4 and 14		24,607,700		25,111,387
Less loan commissions, net of origination costs				100,798		102,823
Less allowance for loan losses		4		64,877		64,848
Loans, net				24,442,025		24,943,716
Accrued interest and commissions receivable				596,747		523,098
Equity investments				458,679		459,667
Derivative financial instruments		13 and 14		213,717		184,805
Property and equipment, net				104,923		106,046
Other assets		5		589,494		761,542
TOTAL				40,856,751		40,014,247
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Deposits		6		1,456,620		3,210,545
Commercial paper		7		852,517		641,295
Borrowings (US$ 467,040 and US$ 470,220 at fair value as of March 31, 2019 and December 31, 2018)		8 and 14		1,343,750		1,284,269
Bonds (US$ 23,546,571 and US$ 21,461,610 at fair value as of March 31, 2019 and December 31, 2018)		9 and 14		23,703,962		21,620,093
Accrued interest payable				429,851		394,233
Derivative financial instruments		13 and 14		807,268		876,784
Accrued expenses and other liabilities		10		164,052		123,628
Total liabilities				28,758,020		28,150,847
STOCKHOLDERS EQUITY:
Subscribed capital				8,056,525		7,989,620
Less callable capital portion				1,589,660		1,589,660
Less capital subscriptions receivable				1,265,400		1,233,240
Paid-in capital				5,201,465		5,166,720
Additional paid-in capital				3,659,064		3,595,133
Reserves				3,101,547		2,877,970
Retained earnings				136,655		223,577
Total stockholders’ equity				12,098,731		11,863,400
TOTAL				40,856,751		40,014,247

See accompanying notes to the unaudited condensed interim financial information

S-1

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Unaudited Condensed Interim Statements of Comprehensive Income

For the three-month periods ended March 31, 2019 and 2018

(In thousands of U.S. dollars)

	NOTES		2019			2018
Interest income:
Loans				296,817			220,402
Investments and deposits with banks		3		126,341			46,451
Loan commissions				8,284			9,255
Total interest income				431,442			276,108
Interest expense:
Bonds				225,213			151,136
Deposits				13,995			11,108
Commercial paper				6,336			4,107
Borrowings				12,024			9,326
Commissions				1,830			3,855
Total interest expense				259,398			179,532
Net interest income				172,044			96,576
(Credit) provision for loan losses		4		(1,370	)		9,286
Net interest income, after provision for loan losses				173,414			87,290
Non-interest income:
Other commissions				1,375			1,133
Dividends and equity in earnings of investees				223			596
Other income				950			498
Total non-interest income				2,548			2,227
Non-interest expenses:
Administrative expenses				34,923			37,990
Other expenses				5,883			355
Total non-interest expenses				40,806			38,345
Net income before unrealized changes in fair value related to financial instruments and Contributions to Stockholders’ Special Funds				135,156			51,172
Unrealized changes in fair value related to other financial instruments		15		1,569			1,296
Net income before Contributions to Stockholders’ Special Funds				136,725			52,468
Contributions to Stockholders’ Special Funds		11		70			2,593
Net income				136,655			49,875
Other comprehensive income:
Unrecognized changes in assets/ liabilities under benefit pension plan				—			—
Amortization of defined benefit pension items				—			—
Total comprehensive income				136,655			49,875

See accompanying notes to the unaudited condensed interim financial information

S-2

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Unaudited Condensed Interim Statements of Stockholders’ Equity

For the three-month periods ended March 31, 2019 and 2018

(In thousands of U.S. dollars)

					Reserves
	Paid-in capital		Additional paid-in capital		General reserve		Article N° 42 of the Constitutive Agreement		Total reserves		Retained earnings			Total stockholders’ equity
BALANCES AT DECEMBER 31, 2017		4,984,295		3,259,471		2,316,071		485,500		2,801,571		76,399			11,121,736
Capital increase		37,030		68,135		—		—		—		—			105,165
Net income		—		—		—		—		—		49,875			49,875
Appropriated for general reserve		—		—		63,699		—		68,699		(68,699	)		—
Appropriated for reserve pursuant to Article N° 42 of the Constitutive Agreement		—		—		—		7,700		7,700		(7,700	)		—
BALANCES AT MARCH 31, 2018		5,021,325		3,327,606		2,384,770		493,200		2,877,970		49,875			11,276,776
BALANCES AT DECEMBER 31, 2018		5,166,720		3,595,133		2,384,770		493,200		2,877,970		223,577			11,863,400
Capital increase		34,745		63,931		—		—		—		—			98,676
Net income		—		—		—		—		—		136,655			136,655
Appropriated for general reserve		—		—		201,177		—		201,177		(201,177	)		—
Appropriated for reserve pursuant to Article N° 42 of the Constitutive Agreement		—		—		—		22,400		22,400		(22,400	)		—
BALANCES AT MARCH 31, 2019		5,201,465		3,659,064		2,585,947		515,600		3,101,547		136,655			12,098,731

See accompanying notes to the unaudited condensed interim financial information

S-3

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Unaudited Condensed Interim Statements of Cash Flows

For the three-month periods ended March 31, 2019 and 2018

(In thousands of U.S. dollars)

	NOTE		2019			2018
OPERATING ACTIVITIES:
Net income				136,655			49,875
Adjustments to reconcile net income to net cash used in operating activities:
Unrealized gains on trading securities				(31,025	)		(3,812	)
Amortization of loan commissions, net of origination costs				(3,318	)		(3,737	)
(Credit) provision for loan losses		4		(1,370	)		9,286
Impairment charge for equity investments				11			—
Equity in losses of investees				1,668			—
Amortization of deferred charges				771			1,158
Depreciation of property and equipment				1,381			1,838
Provision for employees’ severance benefits				3,515			3,556
Provision for employees’ savings plan				237			290
Unrealized changes in fair value related to other financial instruments				(1,569	)		(1,296	)
Net changes in operating assets and liabilities:
Severance benefits paid or advanced				(2,940	)		(1,334	)
Employees’ savings plan paid or advanced				(873	)		(375	)
Trading securities, net				(589,730	)		(225,758	)
Interest and commissions receivable				(73,649	)		7,985
Other assets				(5,734	)		(3,521	)
Accrued interest payable				35,618			(2,823	)
Accrued expenses and other liabilities				(36,302	)		(32,504	)
Total adjustments and net changes in operating assets and liabilities				(703,309	)		(251,047	)
Net cash used in operating activities				(566,654	)		(201,172	)
INVESTING ACTIVITIES:
Purchases of other investments				(1,133,822	)		(343,665	)
Maturities of other investments				904,853			892,786
Loan origination and principal collections, net				508,012			462,920
Equity investments, net				(691	)		(6,170	)
Purchases of property and equipment, net				(258	)		(3,917	)
Net cash provided by investing activities				278,094			1,001,954
Carried forward,				(288,560	)		800,782

See accompanying notes to the unaudited condensed interim financial information

S-4

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Unaudited Condensed Interim Statements of Cash Flows

For the three-month periods ended March 31, 2019 and 2018

(In thousands of U.S. dollars)

	2019			2018
Brought forward,		(288,560	)		800,782
FINANCING ACTIVITIES:
Net (decrease) increase in deposits		(1,753,925	)		201,699
Proceeds from commercial paper		762,000			120,000
Repayment of commercial paper		(550,778	)		(910,420	)
Net decrease in derivative-related collateral		182,051			29,937
Proceeds from issuance of bonds		2,109,099			1,526,335
Repayment of bonds		(117,822	)		(1,886,146	)
Proceeds from borrowings		61,963			105,145
Repayment of borrowings		(7,044	)		(6,747	)
Proceeds from issuance of shares		98,676			105,165
Net cash provided by (used in) financing activities		784,220			(715,032	)
NET INCREASE IN CASH AND DUE FROM BANKS AND DEPOSITS WITH BANKS		495,660			85,750
CASH AND DUE FROM BANKS AND DEPOSITS WITH BANKS AT BEGINNING OF THE PERIOD		2,721,667			2,063,060
CASH AND DUE FROM BANKS AND DEPOSITS WITH BANKS AT END OF THE PERIOD		3,217,327			2,148,810
SUPPLEMENTAL DISCLOSURE:
Interest paid during the period		218,084			172,329
NON-CASH FINANCING ACTIVITIES:
Changes in derivative financial instruments assets		28,912			(69,997	)
Changes in derivative financial instruments liabilities		69,516			(45,801	)

See accompanying notes to the unaudited condensed interim financial information

S-5

CORPORACIÓN ANDINA DE FOMENTO (CAF)

Notes to the Unaudited Condensed Interim Financial Information

As of March 31, 2019 and December 31, 2018

and for the three-month periods ended March 31, 2019 and 2018

(In thousands of U.S. dollars)

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 Constitutive Agreement. Series “A” and “B” stockholder countries are: Argentina, Bolivia, Brazil, Colombia, Ecuador, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay and Venezuela. Series “C” stockholder countries are: Barbados, Chile, Costa Rica, Dominican Republic, Jamaica, Mexico, Portugal and Spain. 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, Mexico City, Panama City, La Paz, Lima, Madrid, Montevideo, Port of Spain 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 owned and sponsored by other countries and organizations, destined to finance programs agreed upon with donor countries and organizations which are in line with CAF´s policies and strategies.

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

2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Financial statement presentation – The condensed interim financial information as of March 31, 2019 and December 31, 2018 and for the three-month periods ended March 31, 2019 and 2018 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 condensed 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, 2019 are not necessarily an indication of the results to be expected for the full year 2019.

This condensed interim financial information should be read in conjunction with CAF’s audited financial statements as of and for the years ended December 31, 2018, 2017 and 2016 and the notes thereto.

For a detailed discussion about CAF´s significant accounting policies, refer to Note 2 of the audited financial statements as of and for the years ended December 31, 2018, 2017 and 2016. During the three-month period ended March 31, 2019, there were no significant updates to CAF´s significant accounting policies.

S-6

3. MARKETABLE SECURITIES

Trading

A summary of trading securities follows:

	March 31, 2019				December 31, 2018
	Amount		Average maturity (years)		Amount		Average maturity (years)
U.S. Treasury Notes		1,880,086		1.94		1,799,690		1.86
Non-U.S. governments and government entities bonds		286,613		1.23		243,581		1.31
Financial institutions and corporate securities:
Commercial paper		3,653,972		0.14		3,371,479		0.13
Certificates of deposits		2,023,796		0.19		1,707,010		0.19
Bonds		1,842,961		2.54		1,856,325		2.52
Collateralized mortgage obligation		336,659		3.91		352,643		4.03
Liquidity funds		322,033		1.00		324,228		1.00
		8,179,421		0.88		7,611,685		0.91
Marketable securities		10,346,120		1.08		9,654,956		1.08

The fair value of trading securities include net unrealized gains of US$ 31,025 and US$ 3,811 at March 31, 2019 and 2018, respectively.

Net realized gains and losses from trading securities of US$ 71,206 and US$ 17,340 at March 31, 2019 and 2018, respectively, are included in the statements of comprehensive income as part of Interest income-Investments and deposits with banks.

Maturity of trading securities follows:

	March 31, 2019		December 31, 2018
Remaining maturities:
Less than one year		6,701,617		6,032,574
Between one and two years		2,043,482		1,964,737
Between two and three years		691,997		649,114
Between three and four years		471,765		568,404
Between four and five years		246,701		305,809
Over five years		190,558		134,318
		10,346,120		9,654,956

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 with private institutions or companies of these countries.

S-7

Loans by country are summarized as follows:

	March 31, 2019		December 31, 2018
Stockholder country:
Argentina		3,578,553		3,577,715
Barbados		81,633		84,014
Bolivia		2,524,600		2,562,869
Brazil		1,802,747		1,694,502
Chile		399,850		425,000
Colombia		2,803,453		2,840,345
Costa Rica		86,239		88,795
Dominican Republic		198,725		206,515
Ecuador		3,599,682		3,586,804
Mexico		130,000		530,000
Panama		1,803,830		1,900,354
Paraguay		472,318		466,200
Peru		2,025,707		2,039,674
Trinidad & Tobago		600,000		600,000
Uruguay		984,369		994,685
Venezuela		3,514,667		3,514,102
Total		24,606,373		25,111,574
Fair value adjustments		1,327		(187	)
Loans		24,607,700		25,111,387

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

At March 31, 2019 and December 31, 2018, loans denominated in other currencies were granted for an equivalent of US$ 35,422 and US$ 30,155, respectively, principally in Peruvian nuevos soles, Colombian pesos, Uruguayan pesos and Bolivian bolivianos. At March 31, 2019 and December 31, 2018, fixed interest rate loans amounted to US$ 116,040 and US$ 134,104, respectively.

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

	March 31, 2019		December 31, 2018
Public sector		21,336,747		21,571,079
Private sector		3,269,626		3,540,495
		24,606,373		25,111,574

The weighted average yield of the loan portfolio is shown below:

	March 31, 2019				December 31, 2018
	Amount		Weighted average yield (%)		Amount		Weighted average yield (%)
Loans		24,606,373		4.61		25,111,574		4.43

S-8

Loans by industry segments are as follows:

	March 31, 2019				December 31, 2018
	Amount		%		Amount		%
Electricity, gas and water supply		7,749,827		32		7,853,261		31
Transport, warehousing and communications		7,247,646		29		7,288,024		29
Social and other infrastructure programs		6,757,154		27		6,473,592		26
Financial services — Commercial banks		1,979,769		8		2,141,810		9
Financial services — Development banks		528,465		2		999,466		4
Agriculture, hunting and forestry		144,292		1		151,551		1
Manufacturing industry		86,762		—		91,413		—
Others		112,458		1		112,457		—
		24,606,373		100		25,111,574		100

Loans mature as follows:

	March 31, 2019		December 31, 2018
Remaining maturities:
Less than one year		4,896,539		5,327,009
Between one and two years		2,589,099		2,638,910
Between two and three years		2,422,462		2,399,462
Between three and four years		2,364,405		2,416,173
Between four and five years		2,261,095		2,169,924
Over five years		10,072,773		10,160,096
		24,606,373		25,111,574

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

	March 31, 2019		December 31, 2018
Sovereign guaranteed		20,482,125		20,737,233
Non-sovereign guaranteed		4,124,248		4,374,341
		24,606,373		25,111,574

S-9

Loan portfolio quality

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

	March 31, 2019		March 31, 2018
During the period CAF recorded the following transactions:
Loans written-off		0		12,000
Purchases of loan portfolio		0		0
Sales of loan portfolio		8,000		0

	March 31, 2019			December 31, 2018
CAF presented the following amounts and quality indicators as of the end of the period / year:
Non-accrual loans		111,294			112,695
Impaired loans		111,294			112,695
Troubled debt restructured		0			0
Overdue loans		175,399			124,286
Allowance for loan losses as a percentage of loan portfolio		0.26	%		0.26	%
Non-accrual loans as a percentage of loan portfolio		0.45	%		0.45	%
Overdue loan principal as a percentage of loan portfolio		0.71	%		0.49	%

As of March 31, 2019, there are outstanding overdue amounts from Venezuela totaling US$ 249,829, comprising, US$ 175,399 of principal and US$ 74,430 of interest and commissions. Those amounts were originally due between December 7, 2018 and February 25, 2019.

At December 31, 2018, there were outstanding overdue amount from Venezuela totaling US$ 182,776 comprising, US$ 124,286 of principal and US$ 58,490 of interest and commissions. Those amounts were originally due between December 7, 2018 and December 28, 2018.

In January 2019, CAF received payments for US$ 6,133 related to outstanding overdue interest at December 31, 2018; in addition, in April 2019, CAF received payments for the total amount of outstanding overdue loans and interest at March 31, 2019.

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, 2019 and December 31, 2018, CAF had loans of this nature amounting to US$ 352,588 and US$ 366,048, respectively; whereby other financial institutions provided funds for US$ 204,602, and US$ 208,761, respectively.

S-10

Allowance for Loan Losses

Changes in the allowance, the balance for loan losses over the outstanding amounts of loans, individually and collectively evaluated, are presented below:

	For the three-month periods ended March 31,
	2019									2018
	Credit risk									Credit risk
	Sovereign			Non- sovereign			Total			Sovereign		Non- sovereign			Total
Balances at beginning of period		36,715			28,133			64,848			35,239		31,986			67,225
(Credit) provision for loan losses		(23	)		(1,347	)		(1,370	)		797		8,489			9,286
Loans written-off		—			—			—			—		(12,000	)		(12,000	)
Recoveries		—			1,399			1,399			—		839			839
Balances at end of period		36,692			28,185			64,877			36,036		29,314			65,350

	March 31, 2019						December 31, 2018
	Sector						Sector
	Sovereign		Non- sovereign		Total		Sovereign		Non- sovereign		Total
Allowance:
Individually evaluated for loan losses		—		28,185		28,185		—		28,133		28,133
Collectively evaluated for loan losses		36,692		—		36,692		36,715		—		36,715
		36,692		28,185		64,877		36,715		28,133		64,848

	March 31, 2019						December 31, 2018
	Sector						Sector
	Sovereign		Non- sovereign		Total		Sovereign		Non- sovereign		Total
Loans:
Individually evaluated for loan losses		—		4,124,248		4,124,248		—		4,374,341		4,374,341
Collectively evaluated for loan losses		20,482,125		—		20,482,125		20,737,233		—		20,737,233
		20,482,125		4,124,248		24,606,373		20,737,233		4,374,341		25,111,574

5. OTHER ASSETS

A summary of other assets follows:

	March 31, 2019		December 31, 2018
Derivative-related collateral		558,944		735,955
Intangible assets, net		10,038		10,169
Other		20,512		15,418
		589,494		761,542

S-11

6. DEPOSITS

A summary of deposits follows:

	March 31, 2019		December 31, 2018
Demand deposits		74,027		72,007
Time deposits:
Less than one year		1,382,593		3,138,538
		1,456,620		3,210,545

At March 31, 2019 and December 31, 2018, the weighted average cost was 2.99 % and 1.91%, respectively. Deposits are issued for amounts equal to or more than US$ 100. Total deposits denominated in other currencies amounted to an equivalent of US$ 203 and US$ 457,848 at March 31, 2019 and December 31, 2018, respectively.

7. COMMERCIAL PAPER

At March 31, 2019 and December 31, 2018, the outstanding amount of commercial paper issued by CAF, amounts to US$ 852,517, and US$ 641,295, respectively, these amounts mature in 2019. At March 31, 2019 and December 31, 2018, the weighted average cost was 2.76 % and 1.94%, respectively.

8. BORROWINGS

A summary of borrowings by currency follows:

	March 31, 2019		December 31, 2018
U.S. dollars		1,218,909		1,158,009
Euros		100,356		106,628
Peruvian nuevo soles		23,202		22,828
Other		1,928		2,039
		1,344,395		1,289,504
Fair value adjustments		146		(4,415	)
Less debt issuance costs		791		820
Carrying value of borrowings		1,343,750		1,284,269

At March 31, 2019 and December 31, 2018, the fixed interest-bearing borrowings amounted to US$ 467,432 and US$ 467,169, respectively. At March 31, 2019 and December 31, 2018, the weighted average interest rate after considering the impact of interest rate swaps was 3.64% and 3.14%, respectively.

Borrowings, by remaining maturities, are summarized below:

	March 31, 2019		December 31, 2018
Remaining maturities:
Less than one year		185,944		181,505
Between one and two years		392,183		392,356
Between two and three years		159,217		155,327
Between three and four years		134,844		130,031
Between four and five years		128,708		122,532
Over five years		343,499		307,753
		1,344,395		1,289,504

S-12

Some borrowings agreements contains covenants requiring the use of the proceeds for specific purposes or projects.

At March 31, 2019 and December 31, 2018, there were unused term credit facilities amounting to US$ 946,791 and US$ 782,691, respectively.

9. BONDS

An analysis of outstanding bonds follows:

	March 31, 2019						December 31, 2018
	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		10,482,541		10,482,541		4.71		9,235,275		9,235,275		6.71
Euro		7,803,197		7,285,394		2.87		6,952,140		6,574,568		1.81
Swiss francs		2,465,621		2,360,149		2.60		2,465,629		2,388,454		2.60
Australian dollars		1,041,752		933,551		3.63		1,041,899		925,405		3.63
Hong Kong dollars		757,301		748,653		1.90		757,299		750,575		1.90
Norwegian kroner		622,501		487,115		3.26		622,500		481,895		3.26
Japanese yen		235,400		216,567		3.49		347,422		308,250		4.20
Colombian pesos		283,283		246,963		3.64		283,283		241,991		2.38
Mexican pesos		254,795		222,268		3.63		254,725		219,228		3.64
Indonesian Rupee		75,000		72,604		2.59		75,000		70,984		2.02
Brazilian Real		68,701		56,222		2.02		68,701		56,805		2.38
Peruvian nuevos soles		53,378		53,334		4.44		53,378		52,476		4.44
South African rand		37,775		40,864		2.38		37,773		40,881		2.79
Turkish lira		64,471		34,417		2.38		64,467		36,425		3.63
Indian Rupee		31,891		30,913		2.79		31,891		30,572		2.59
Canadian dollars		30,394		29,938		3.19		30,395		29,295		3.19
Uruguayan pesos		4,774		4,774		—		—		—		—
		24,312,775		23,306,267				22,321,777		21,443,079
Fair value adjustments				415,843						195,441
Less debt issuance costs				18,148						18,427
Carrying value of bonds				23,703,962						21,620,093

A summary of the bonds issued, by remaining maturities at original exchange rate, follows:

	March 31, 2019		December 31, 2018
Remaining maturities:
Less than one year		2,309,831		2,291,645
Between one and two years		4,124,496		3,906,435
Between two and three years		5,165,067		3,154,929
Between three and four years		2,626,860		2,685,947
Between four and five years		3,376,856		3,202,716
Over five years		6,709,665		7,080,105
		24,312,775		22,321,777

S-13

At March 31, 2019 and December 31, 2018, fixed interest rate bonds amounted to US$ 24,227,010 and US$ 22,229,968, respectively, of which US$ 13,842,914 and US$ 13,095,772, respectively, are denominated in other currencies.

There were no bonds repurchased during the three-month periods ended March 31, 2019 and 2018.

10. ACCRUED EXPENSES AND OTHER LIABILITIES

A summary of accrued expenses and other liabilities follows:

	March 31, 2019		December 31, 2018
Employees’ severance benefits and savings plan		79,863		82,273
Payable for investment securities purchased		71,747		—
Derivatives related collateral		5,040		—
Provision for contingencies		1,265		1,414
Contributions to Stockholders´ Special Funds		70		36,872
Other liabilities		6,067		3,069
		164,052		123,628

11. CONTRIBUTIONS TO STOCKHOLDERS’ SPECIAL FUNDS

In March 2019, the Stockholders’ Assembly of CAF approved the contribution up to a maximum amount of US$ 130,000 to some stockholders’ special funds for 2019. Subsequently, during the three-month period ended March 31, 2019, the Executive President directly or by delegation, based on the analysis of the new commitments contracted or the resources required by the stockholders´ special funds, authorized the contributions of US$ 70 to Technical Cooperation Fund (FCT). For the three-month period ended March 31, 2019, CAF recognized US$ 70 as an expense and, at March 31, 2019 recognized an unconditional obligation (accounts payable) for US$ 70 which was paid in April 2019.

In March 2018, the Stockholders’ Assembly of CAF approved the contribution up to a maximum amount of US$ 92,000 to some stockholders’ special funds for 2018. Subsequently, during the three-month period ended March 31, 2018, the Executive President directly or by delegation, based on the analysis of the new commitments contracted or the resources required by the stockholders´ special funds, authorized the contributions of US$ 2,193 and US$ 400 to FCT and Human Development Fund (FONDESHU), respectively. For the three-month period ended March 31, 2018, CAF recognized US$ 2,593 as an expense and, at March 31, 2018 recognized an unconditional obligation (accounts payable) for US$ 2,593 which was paid in April 2018.

12. TAX EXEMPTIONS

Pursuant to its Constitutive Agreement CAF is exempt, in all of its Member Countries, from all taxes on income, properties and other assets as well as from any liability related to the payment, withholding or collection of any taxes. The term “Member Country” is defined in Article 3 of CAF’s General Regulations as any shareholder country holding at least one Series “A” share that, either is a signatory to the Constitutive Agreement or, being of Latin America or the Caribbean, has adhered to it. At March 2019 and December 2018, the Member Countries are Argentina, Bolivia, Brazil, Colombia, Ecuador, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay and Venezuela.

CAF has entered into bilateral agreements with its other shareholder countries providing for tax exemptions substantially similar to those granted to it by the Member Countries.

S-14

13. 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.

The market risk associated with interest rate and foreign currency risk is managed by swapping marketable securities — trading, loans, borrowings and bonds, 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 to offset the economic changes in value of specifically identified marketable securities — trading, loans, borrowings and bonds.

Derivative financial instruments held by CAF consist of interest rate swaps designated as fair value hedges of specifically identified loans, bonds or borrowings with fixed interest rates and denominated in U.S. dollars. Also, CAF enters into cross-currency and interest rate swaps as an economic hedge (derivative that is entered into to manage a risk but is not accounted as a hedge) for interest rate and foreign exchange risks related with marketable securities — trading, bonds, borrowings or loans denominated in currencies other than the U.S. dollar where CAF’s management elected to measure those liabilities and assets at fair value under the fair value option guidance.

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.

In order to 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 marked-to-market, and the party being the net obligor is required to post collateral when net mark to-market exposure exceeds certain predetermined thresholds. This collateral is in the form of cash.

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.

CAF also utilizes futures derivatives instruments to reduce exposure to price 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. Additionally, CAF utilizes forward contracts to reduce exposure to foreign currency risk.

The balance sheet details related to CAF’s derivative financial instruments are as follows:

	Derivative assets				Derivative liabilities
	March 31, 2019		December 31, 2018		March 31, 2019		December 31, 2018
Cross-currency swap		153,368		152,018		709,817		733,232
Interest rate swap		59,853		31,978		90,823		134,624
U.S Treasury futures		360		657		6,627		8,696
Cross-currency forward contracts		136		152		1		232
		213,717		184,805		807,268		876,784

S-15

The following table presents the notional amounts and fair values of interest rate swaps and cross-currency swaps and the underlying hedged items:

	Notional amount				Fair value
	Interest rate swap		Cross- currency swap		Derivative assets		Derivative liabilities
At March 31, 2019:
Loans		65,946		—		213		1,228
Loans		—		6,333		404		—
Borrowings		—		100,356		—		944
Borrowings		366,538		—		2,986		2,465
Bonds		—		13,838,140		152,964		708,873
Bonds		10,299,096		—		56,654		87,130
		10,731,580		13,944,829		213,221		800,640

	Notional amount				Fair value
	Interest rate swap		Cross- currency swap		Derivative assets		Derivative liabilities
At December 31, 2018:
Loans		68,752		—		826		411
Loans		—		6,333		620		—
Borrowings		—		108,097		89		—
Borrowings		366,538		—		1,467		6,183
Bonds		—		13,095,772		151,309		733,232
Bonds		9,049,096		—		29,685		128,030
		9,484,386		13,210,202		183,996		867,856

The following table presents the notional amount and fair values of U.S. treasury futures and cross-currency forwards contracts:

At March 31, 2019

						Fair value
	Start date	Termination date	Contract Currency	Notional amount		Derivative assets
Forward contracts	Various	Until June 2019	Various		54,264		136
Futures long	Various	Until June 2019	Various		89,600		360
						Fair value
	Start date	Termination date	Contract Currency	Notional amount		Derivative liabilities
Forward contracts	Various	Various	Various		3,079		(1	)
Futures short	Various	Until June 2019	Various		1,433,600		(6,627	)

S-16

At December 31, 2018
									Fair value
	Start date		Termination date		Contract Currency		Notional amount		Derivative assets
Forward contracts		Various		Until March 2019		Various		15,603		152
Futures short		Various		Until March 2019		Various		103,600		657
									Fair value
	Start date		Termination date		Contract Currency		Notional amount		Derivative liabilities
Forward contracts		Various		Various		Various		24,572		(232	)
Futures long		Various		Until March 2019		Various		1,336,600		(8,696	)

The amount of collateral posted related to futures at March 31, 2019 and December 31, 2018, was US$ 11,917 and US$ 13,690, respectively. At March 31, 2019 and 2018, there were no collateral received related to futures.

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 effect of offsetting of derivative financial instruments, although CAF has elected not to offset any derivative financial instruments by counterparty in the balance sheet:

At March 31, 2019

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		213,221			(212,762	)		(5,040	)		(4,581	)
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		(800,640	)		212,762			547,027			(40,851	)

S-17

At December 31, 2018

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		183,996			(183,974	)		—		22
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		(867,856	)		183,974			722,265		38,383

14. 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 financial instrument is classified. Where appropriate, the description includes details of the valuation methodologies and the key inputs to those methodologies.

When available, CAF generally uses quoted prices in active markets to determine fair value.

If quoted market prices in active markets are not available, fair value is based upon internally developed valuation methodologies that use, where possible, current market-based or independently sourced market inputs, such as interest rates, currency rates, etc.

Where available, CAF may also make use of quoted prices in active markets for recent trading activity in positions with the same or similar characteristics to the financial instrument being valued. The frequency and size of trading activity and the amount of the bid-ask spread are among the factors considered in determining the liquidity of markets and the relevance of observed quoted prices from those markets.

The following valuation methodologies are used to estimate the fair value and determine the classification in the fair value hierarchy of CAF’s financial instruments:

• Marketable securities: CAF uses quoted prices in active markets to determine the fair value of trading securities. These securities are classified in Level 1 of the fair value hierarchy.

• Loans: The fair value of fixed rate loans is determined using a discounted cash flow technique 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 financial instruments 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 an independent financial information services company, which are determined based on discounted cash flows using observable inputs. 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 by using a discounted cash flow 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. Bonds and borrowings are generally

S-18

classified in Level 2 of the fair value hierarchy based on the observability of significant inputs to the valuation methodologies technique.

During the three-month period ended March 31, 2019 and the year ended December 31, 2018, there were no transfers between levels 1, 2 and 3.

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 March 31, 2019

	Level 1		Level 2		Level 3		Total
Assets:
Marketable Securities:
U.S. Treasury Notes		1,880,086		—		—		1,880,086
Non-U.S. governments and government entities bonds		286,613		—		—		286,613
Financial institutions and corporate securities:
Commercial paper		3,653,972		—		—		3,653,972
Certificate of deposits		2,023,796		—		—		2,023,796
Bonds		1,842,961		—		—		1,842,961
Collateralized mortgage obligation		336,659		—		—		336,659
Liquidity funds		322,033		—		—		322,033
		8,179,421		—		—		8,179,421
Sub-total financial assets at fair value		10,346,120		—		—		10,346,120
Loans		—		73,230		—		73,230
Derivative instruments:
Cross-currency swap		—		153,368		—		153,368
Interest rate swap		—		59,853		—		59,853
U.S Treasury futures		—		360		—		360
Cross-currency forward contracts		—		136		—		136
		—		213,717		—		213,717
Total financial assets at fair value		10,346,120		286,947		—		10,633,067
Liabilities:
Borrowings		—		467,040		—		467,040
Bonds		—		23,546,571		—		23,546,571
Derivative instruments:
Cross-currency swap		—		709,817		—		709,817
Interest rate swap		—		90,823		—		90,823
U.S Treasury futures		—		6,627		—		6,627
Cross-currency forward contracts		—		1		—		1
		—		807,268		—		807,268
Total financial liabilities at fair value		—		24,820,879		—		24,820,879

S-19

At December 31, 2018

	Level 1		Level 2		Level 3		Total
Assets:
Marketable Securities:
U.S. Treasury Notes		1,799,690		—		—		1,799,690
Non-U.S. governments and government entities bonds		243,581		—		—		243,581
Financial institutions and corporate securities:
Commercial paper		3,371,479		—		—		3,371,479
Certificate of deposits		1,707,010		—		—		1,707,010
Bonds		1,856,325		—		—		1,856,325
Collateralized mortgage obligation		352,643		—		—		352,643
Liquidity funds		324,228		—		—		324,228
	7,611,685		—		—		7,611,685
Sub-total financial assets at fair value		9,654,956		—		—		9,654,956
Loans		—		74,402		—		74,402
Derivative instruments:
Cross-currency swap		—		152,018		—		152,018
Interest rate swap		—		31,978		—		31,978
U.S Treasury futures		—		657		—		657
Cross-currency forward contracts		—		152		—		152
	—		184,805		—		184,805
Total financial assets at fair value		9,654,956		259,207		—		9,914,163
Liabilities:
Borrowings		—		470,220		—		470,220
Bonds		—		21,461,610		—		21,461,610
Derivative instruments:
Cross-currency swap		—		733,232		—		733,232
Interest rate swap		—		134,624		—		134,624
U.S Treasury futures		—		8,696		—		8,696
Cross-currency forward contracts		—		232		—		232
	—		876,784		—		876,784
Total financial liabilities at fair value		—		22,808,614		—		22,808,614

S-20

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, 2019				December 31, 2018
	Hierarchy Levels		Carrying amount		Estimated fair value		Carrying amount		Estimated fair value
Financial assets:
Cash and due from banks		1		180,061		180,061		127,355		127,355
Deposits with banks		1		3,037,266		3,037,266		2,594,312		2,594,312
Other investments		1		887,719		887,719		658,750		658,750
Loans, net		2		24,368,795		24,370,123		24,869,314		24,871,974
Accrued interest and commissions receivable		2		596,747		596,747		523,098		523,098
Derivate related collateral		1		558,944		558,944		735,955		735,955
Financial liabilities:
Deposits		2		1,456,620		1,456,620		3,210,545		3,210,545
Commercial paper		2		852,517		852,517		641,295		641,295
Borrowings, net		2		876,710		879,997		814,049		817,727
Bonds, net		2		157,391		158,039		158,483		159,131
Accrued interest payable		2		429,851		429,851		394,233		394,233
Derivate related collateral		1		5,040		5,040		—		—
Payable for investment securities purchased		1		71,747		71,747		—		—

The following methodologies and input 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, accrued interest payable, derivate related collateral, receivable from investment securities sold and payable for investment securities purchased: The carrying amounts approximate fair value because of the short maturity of these instruments.

• Loans: CAF is one of the few institutions that grants 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 by 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: The direct investments in equity securities of companies without a readily determinable fair value are measured at cost, less impairment plus or minus observable price changes of an identical or similar instrument of the same issuer. At March 31, 2019 and December 2018, the carrying amount of those investments amounted to US$ 57,983 and US$ 57,983, respectively, and the effects of impairment and the changes in observable prices for three-months ended March 31, 2019 amounting to US$ 11. For the three-months period ended March 31, 2018, there were no effects of impairment. In addition, at March 31, 2019 and December 2018, investments in funds without a readily determinable fair value, with carrying amount of US$ 377,462 and US$ 378,174, respectively, are accounted for at fair value applying the practical expedient, using the net asset value per share.

• Bonds and borrowings: For CAF´s bonds issued and medium and long term borrowings, fair value is determined using a discounted cash flow 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.

S-21

Those transactions are generally classified in Level 2 of the fair value hierarchy based on the observability of significant inputs to the valuation methodologies.

During the three-month period ended March 31, 2019 and the year ended December 2018 there were no transfers between levels 1, 2 and 3.

15. GAIN (LOSSES) ON CHANGES IN FAIR VALUE RELATED TO OTHER FINANCIAL INSTRUMENTS

The gains (losses) on changes in fair value of marketable securities – trading, cross-currency swaps and financial liabilities carried at fair value under the fair value options are as follows:

	For the three-months period ended March 31, 2019
	Gain (loss) on derivatives			Gain (loss) on hedged item			Net Gain (loss)
Cross-currency swaps:
Bonds		26,014			(24,724	)		1,290
Loans		(216	)		205			(11	)
Borrowings		(1,033	)		675			(358	)
		24,764			(23,844	)		921

	For the three-months period ended March 31, 2018
	Gain (loss) on derivatives			Gain (loss) on hedged item			Net Gain (loss)
Cross-currency swaps:
Marketable securities — trading		(1,925	)		1,923			(2	)
Bonds		206,957			(205,035	)		1,922
Loans		(1,088	)		752			(337	)
Borrowings		3,465			(3,195	)		270
		207,408			(205,556	)		1,852

In addition, during the three-month period ended March 31, 2019 and 2018, CAF recorded net gains of US$ 648 and net losses of US$ 556, respectively, related to changes in fair value of futures and forwards and changes in fair value of the U.S. Treasury Notes.

16. COMMITMENTS AND CONTINGENCIES

Commitments and contingencies include the following:

	March 31, 2019		December 31, 2018
Loan commitments subscribed — eligibles		4,697,206		4,884,248
Lines of credit		4,649,957		4,014,161
Loan commitments subscribed — non eligibles		2,660,721		1,822,170
Guarantees		165,374		165,294
Equity investments agreements subscribed		125,218		133,582
Letters of credit		602		1,168

These commitments and contingencies arose 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 loan commitments are reported in the above table upon signing the corresponding loan agreement and are reported as loans in the balance sheets when disbursements are made. Loan commitments that have fulfilled the necessary requirements for disbursement are classified as eligible.

S-22

The commitments to extend loans have fixed expiration dates and in some cases expire without a loan being disbursed. Also, based on experience, portions of the loan commitments are disbursed on average two years after the signing of the loan agreement. Therefore, the amounts of total commitment to extend loans do not necessarily represent future cash requirements.

The lines of credit are extended to financial and corporate institutions as a facility to grant short term loans basically to finance working capital and international trade activities.

Guarantees mature as follows:

	March 31, 2019		December 31, 2018
Less than one year		21,750		21,670
Between one and five years		34,649		34,649
Over five years		108,975		108,975
		165,374		165,294

To the best knowledge of CAF’s management, CAF is not involved 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.

17. SEGMENT REPORTING

Management has determined that CAF has only one operating and 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 on the basis of the nature of the products or services provided, the preparation process, or the method for providing services among individual countries.

Loans made to or guaranteed by five countries individually generated in excess, of 10% interest income on loans, as follows:

	For the three-month periods ended March 31,
	2019		2018
Argentina		44,354		32,062
Ecuador		43,632		32,611
Venezuela		42,863		32,111
Colombia		32,283		21,118
Bolivia		31,727		24,504
		194,860		142,406

18. SUBSEQUENT EVENT

Management has evaluated subsequent events through May 15, 2019, the date of issue of these condensed interim financial information. As a result of this evaluation, management has determined that there are no subsequent events that require a disclosure in these condensed interim financial information except for:

• On April 5, 2019, CAF issued bonds for COP 99,500 million, equivalent to USD 33.7 million, 6.77% due 2028, under its Medium Term Notes Programme.

• On April 24, 2019, CAF issued bonds for AUD 11.7 million, equivalent to USD 8.3 million, 1.68% due 2023, under its Medium Term Notes Programme.

S-23

• On May 3, 2019, CAF issued bonds for MXN 965.0 million, equivalent to USD 51.3 million, 9.60% due 2039, under its Medium Term Notes Programme.

• On May 15, 2019, CAF issued bonds for EUR 40.0 million, equivalent to USD 44.9 million, 0.17% under its Medium Term Notes Programme.

S-24

CORPORACIÓN ANDINA DE FOMENTO (CAF)

SUPPLEMENTARY INFORMATION (UNAUDITED)

AS OF MARCH 31, 2019

BONDS

Title	Interest Rate		Coupon			Date of Agreement of Issue		Year of Final Maturity		Currency			Principal Amount Outstanding at March 31, 2019 (in millions)
7.875% Yankee Bonds		Fixed		7.875	%		2002		2022		USD			85
8.125% Yankee Bonds		Fixed		8.125	%		2009		2019		USD			733.7
10.79% Colombian Peso Bonds		Fixed		10.79	%		2009		2019		COP	(1)		127,500
3.95% Mexican Pesos Bonds		Fixed		3.95	%		2011		2021		MXN	(2)		1,317
4.375% Yankee Bonds		Fixed		4.375	%		2012		2022		USD			1,500
4.03% Euro Hong Kong Dollar Bonds		Fixed		4.03	%		2012		2022		HKD	(3)		400
1.85% Euro Yen Bonds		Fixed		1.85	%		2012		2023		JPY	(4)		6,000
4.0% Euro Hong Kong Dollar Bonds		Fixed		4.00	%		2012		2024		HKD			398
4.25% Euro Bond (Schuldschein)		Fixed		4.25	%		2012		2027		EUR	(5)		82
4.375% Euro Bond (Schuldschein)		Fixed		4.375	%		2012		2032		EUR			60
5.0% Euro Dollar Bond		Fixed		5.00	%		2012		2042		USD			50
1.50% Swiss Franc Bonds		Fixed		1.50	%		2013		2020		CHF	(6)		250
1.375% Swiss Franc Bonds		Fixed		1.375	%		2013		2021		CHF			250
1.375% Swiss Franc Bonds		Fixed		1.375	%		2013		2021		CHF			100
Euro Dollar Bonds		Floating		US LIBOR 3M + 0.97	%		2013		2023		USD			100
1.85% Euro Yen Bonds		Fixed		1.85	%		2013		2023		JPY			4,600
6.25% Kangaroo Bonds		Fixed		6.25	%		2013		2023		AUD	(7)		225
4.27% Euro Hong Kong Dollar Bonds		Fixed		4.27	%		2013		2028		HKD			940
3.31% Euro Bonds		Fixed		3.31	%		2013		2028		EUR			250.7
3.25% Euro Bonds		Fixed		3.25	%		2013		2033		EUR			100
3.25% Euro Bonds		Fixed		3.25	%		2013		2033		EUR			100
3.66% Euro Bond		Fixed		3.66	%		2013		2033		EUR			51
3.625% Euro Bond (Schuldschein)		Fixed		3.625	%		2013		2033		EUR			200
1.875% Euro Bonds		Fixed		1.875	%		2014		2021		EUR			750
2.0% Euro Bonds		Fixed		2.00	%		2014		2024		CHF			300
4.070% Euro Bonds		Fixed		4.07	%		2014		2024		NOK	(8)		900
4.29% Euro Bonds		Fixed		4.29	%		2014		2026		NOK			1,500
1.50% Swiss Franc Bonds		Fixed		1.50	%		2014		2028		CHF			225
3.925% Euro Bonds		Fixed		3.925	%		2014		2029		HKD			1,257
3.05% Euro Bonds		Fixed		3.05	%		2014		2030		EUR			50
3.51% Euro Bonds		Fixed		3.51	%		2014		2034		EUR			65
3.500% Euro Bonds		Fixed		3.50	%		2014		2039		EUR			200
1.9% Euro Dollar Bonds		Fixed		1.90	%		2015		2019		USD			50
2.21% Euro Dollar Bonds		Fixed		2.21	%		2015		2020		USD			50
1.00% Euro Bonds		Fixed		1.00	%		2015		2020		EUR			750
0.46% Swiss Franc Bonds		Fixed		0.46	%		2015		2023		CHF			200
0.68% Euro Yen Bonds		Fixed		0.68	%		2015		2025		JPY			8,900
4.50% Kangaroo Bonds		Fixed		4.50	%		2015		2025		AUD			325
0.51% Swiss Franc Bonds		Fixed		0.51	%		2015		2026		CHF			200
0.51% Swiss Franc Bonds		Fixed		0.51	%		2015		2026		CHF			150
3.05% Euro Bonds		Fixed		3.05	%		2015		2030		NOK			800
3.05% Euro Bonds		Fixed		3.05	%		2015		2035		NOK			1,000

S-25

Title	Interest Rate		Coupon			Date of Agreement of Issue		Year of Final Maturity		Currency			Principal Amount Outstanding at March 31, 2019 (in millions)
2.00% Yankee Bond		Fixed		2.00	%		2016		2019		USD			1,250
0.10% Euro Bonds		Fixed		0.10	%		2016		2019		EUR			85.4
9.00% Uridashi Bond		Fixed		9.00	%		2016		2020		ZAR	(9)		590
10.73% Uridashi Bond		Fixed		10.73	%		2016		2020		TRY	(10)		192
1.00% Euro Bonds		Fixed		1.00	%		2016		2020		EUR			250
0.13% Euro Bonds		Fixed		0.13	%		2016		2020		EUR			80.1
4.00% Kangaroo Market Bond		Fixed		4.00	%		2016		2021		AUD			150
1.810% Euro Bonds		Fixed		1.81	%		2016		2021		HKD			712
1.810% Euro Bonds		Fixed		1.81	%		2016		2021		HKD			230
1.810% Euro Bonds		Fixed		1.81	%		2016		2021		USD			30
2.13% Yankee Bond		Fixed		2.125	%		2016		2021		USD			1,000
0.15% Swiss Market Bond		Fixed		0.15	%		2016		2022		CHF			150
0.304% Swiss Market Bond		Fixed		0.304	%		2016		2024		CHF			125
0.45% Samurai Market		Fixed		0.45	%		2016		2026		JPY			4,500
0.51% Swiss Market Bond		Fixed		0.51	%		2016		2026		CHF			125
2.89% Euro Bonds		Fixed		2.89	%		2016		2026		HKD			320
4.00% Kangaroo Market Bond		Fixed		4.00	%		2016		2026		AUD			110
4.50% Kangaroo Market Bond		Fixed		4.50	%		2016		2026		AUD			80
1.70% Euro Bonds		Fixed		1.70	%		2016		2031		EUR			70
1.803% Euro Bonds		Fixed		1.803	%		2016		2031		EUR			100
1.796% Euro Bonds		Fixed		1.796	%		2016		2031		EUR			50
8.10% Uridashi Bond		Fixed		8.10	%		2017		2020		BRL	(11)		220.2
0.50% Euro Bonds		Fixed		0.50	%		2017		2022		EUR			800
3.50% Euro Bonds		Fixed		3.50	%		2017		2037		CAD	(12)		40
5.88% Uridashi Bond		Fixed		5.88	%		2017		2022		INR	(13)		2,138
4.50% Kangaroo Market Bond		Fixed		4.50	%		2017		2027		AUD			325
3.265% Euro Bonds		Fixed		3.265	%		2017		2027		HKD			1,620
0.30% Swiss Market Bond		Fixed		0.30	%		2017		2025		CHF			275
2.20% Yankee Bond		Fixed		2.20	%		2017		2020		USD			1,250
2.75% Yankee Bond		Fixed		2.75	%		2017		2023		USD			1,000
1.125% Euro Bond		Fixed		1.125	%		2018		2025		EUR			1,000
8.50% Mexican Pesos Bonds		Fixed		8.50	%		2018		2028		MXN			3,000
6.50% Indonesian Rupiah Bond		Fixed		6.50	%		2018		2023		IDR	(14)		1,034,100
Euro Dollar Bond		Floating		US LIBOR 3M +0.30	%		2018		2021		USD			100
6.77% Euro Bond		Fixed		6.77	%		2018		2028		COP			510,000
6.75% Euro Bond		Fixed		6.75	%		2018		2028		COP			150,000
0.75% Euro Bond		Fixed		0.75	%		2018		2023		EUR			500
1.00% Euro Bond		Fixed		1.00	%		2018		2020		EUR			150
3.385% Euro Dollar Bond		Fixed		3.385	%		2018		2023		USD			30
4.444% PEN Bond		Fixed		4.444	%		2018		2021		PEN			177
3.4% Kangaroo Market Bond Euro Dollar Bond 3.345% Euro Dollar Bond 3.73% Euro Dollar Bond 3.75% Yankee Bond Euro Dollar Bond		Fixed Floating Fixed Fixed Fixed Floating		3.4 USD LIBOR 3M + 0.33 3.345 3.73 3.75 USD LIBOR 3M + 0.33	%    %  %  %  %    %		2018 2018 2018 2018 2018 2018		2023 2020 2021 2023 2023 2020		AUD USD USD USD USD USD			100 525 400 50 750 280

S-26

Title	Interest Rate		Coupon			Date of Agreement of Issue		Year of Final Maturity		Currency			Principal Amount Outstanding at March 31, 2019 (in millions)
0.63% Euro Bond		Fixed		0.63	%		2019		2024		EUR			750
3.25% Yankee Bond		Fixed		3.25	%		2019		2022		USD			1,250
3.90% Uruguayan bon		Fixed		3.90	%		2019		2040		UIU	(15)		38,670

(1) Colombian Pesos

(2) Mexican Pesos

(3) Hong Kong Dollars

(4) Japanese Yen

(5) Euros

(6) Swiss Francs

(7) Australian Dollars

(8) Norwegian Kroner

(9) South African Rand

(10) Turkish Lira.

(11) Brazilian Real

(12) Canadian Dollars

(13) Indian Rupee

(14) Indonesian Rupiah

(15) Uruguayan Indexed Units

Subsequent Events related to supplementary information:

• On April 5, 2019 we issued bond for COP 99,500 million, 6.77% due 2028, under our Medium Term Notes Programme.

• On April 24, 2019 we issued bonds for AUD 11.7 million, 1.68% due 2023, under our Medium Term Notes Programme.

• On May 3, 2019 we issued bonds for MXN 965 million, 9.600% due 2039, under our Medium Term Notes Programme.

• On May 15, 2019 we issued bonds for EUR 40.0 million, 0.17% due 2023, under our Medium Term Notes Programme.

• On June 26, 2019 we issued bonds for UYU 29.6 million in the Uruguayan market, 3.90%, due 2040.

• On June 28, 2019 we issued bonds for USD 140.0 million, 2.974% due 2029, under our Medium Term Notes Programme.

• On July 23, 2019 we issued UYU 1,752 million, 10.4% due 2024, under our Medium Term Notes Programme.

S-27

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, 2019
								(in USD millions)
Medium and Long-term Loans		Various		Various		Various	Various		1,343.8
Deposits		Floating		Various		Various	Various		1,456.6
Commercial Paper		Floating		Various		Various	USD		852.5

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, 2019 (in USD millions)
ACDI (Canada)	0%	30-Mar-97	29-Sep-23	CAN(1)		0.4
Agencia Francesa de Desarrollo — AfD	Floating	Various	Various	Various		229.7
China Development Bank — CDB	Floating	29-Nov-07	19-Nov-19	USD		15.0
IADB	2%	24-May-97	24-May-23	USD		0.5
Instituto de Crédito Oficial — ICO	Floating	Various	Various	USD		140.0
JBIC, Japan	Floating	Various	Various	USD		72.1
KfW (Germany)	Various	Various	Various	USD		588.4
Nordic Investment Bank	Floating	Various	Various	USD		33.9

(1) Canadian dollars

S-28

GUARANTEED DEBT

Borrower	Date of Issue		Year of Final Maturity		Principal Amount Outstanding at March 31, 2019
					(in USD millions)
Republic of Peru		02/13/2006		02/13/2025		28.0
Instituto de la función registral del Estado de Mexico		08/23/2010		08/23/2030		30.5
Abengoa Transmisión Norte		06/21/2013		06/21/2019		5.0
Isolux Corsan Argentina S.A.		09/15/2011		09/15/2023		34.6
H2Olmos S.A.		10/24/2012		10/25/2032		25.6
Planta de Reserva Fría de Generación de Eten S.A		12/05/2013		12/05/2033		24.8
Banco WWB		11/15/2017		12/20/2019		15.0

S-29

USD 3,000,000,000

CORPORACIÓN ANDINA DE FOMENTO

Debt Securities

Guarantees

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	USD	303,000
Fiscal and Paying Agent Fees	USD	10,000
Fees of rating agencies	USD	350,000
Legal fees	USD	375,000
Printing of registration statement, prospectus and other documents	USD	75,000
Blue Sky expenses (including counsel fees)	USD	10,000
Other	USD	75,000
Total	USD	1,198,000

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 9, 2019

1.2 Form of Underwriting Agreement pertaining to Guarantees (1)

1.3 Form of Pricing Agreement (included in Exhibit 1.1)

4.1 Fiscal Agency Agreement, 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 Octavio Rosselli, 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 Bogotá, Colombia, on the 9th day of August, 2019.

CORPORACIÓN ANDINA DE FOMENTO
By:	/s/    Antonio Recine
	Name: Antonio Recine
	Title:   Director of Financial Policies and International Issues

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 9th day of August, 2019.

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 9, 2019
1.2	Form of Underwriting Agreement pertaining to Guarantees	*
1.3	Form of Pricing Agreement (included in Exhibit 1.1)
4.1	Fiscal Agency Agreement, 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 Octavio Rosselli, 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	*

* To be filed by post-effective amendment.

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 9, 2019

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, Peru, and Trinidad and Tobago, 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.

- 2 -

(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) 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

- 3 -

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 and 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”), other than such obligations as may be preferred by provisions of law that are both mandatory and of general application.

- 4 -

(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 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.

- 5 -

(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) Neither CAF nor, to the best of the knowledge of CAF, any director, officer, agent, employee, affiliate of or other person acting on behalf of CAF has engaged in any activity or conduct which would violate any applicable anti-bribery or anti-corruption law or regulation.

(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) Except as otherwise disclosed in the General Disclosure Package, none of CAF or, to the knowledge of CAF, any director, officer, agent, employee, affiliate or representative of CAF is an individual or entity (a “Person”) 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 (“UNSC”), the European Union, Her Majesty’s Treasury (“HMT”), or other relevant sanctions authority (collectively, “Sanctions”); CAF is not located, organized under the laws of, or resident in, a country or territory that is subject to a general export, import, financial or investment embargo under any Sanctions (currently, Cuba, Iran, North Korea, Syria and the Crimea Region of Ukraine); 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 that, at the time of such funding, is the subject of Sanctions, or in any country or territory that is subject to a general export, import, financial or investment embargo under any Sanctions (currently, Cuba, Iran, North Korea, Syria and the Crimea Region of Ukraine), in any 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; provided, that, for purposes of this subsection (r) of Section 2, a Person shall not be deemed to be an affiliate solely as a result of a minority shareholding in CAF.

- 6 -

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 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

- 7 -

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 US 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 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.

- 8 -

(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 and 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 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 Financial Conduct 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.

- 9 -

(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 one hundred thousand US Dollars (USD 100,000.00) 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;

(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;

- 10 -

(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 and with all other Indebtedness of CAF, other than such obligations as may be preferred by provisions of law that are both mandatory and of general application; 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 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

- 11 -

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 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

- 12 -

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

(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.

- 13 -

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;

- 14 -

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 any 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 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

- 15 -

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.

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

- 16 -

(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.

- 17 -

(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 materially impairs the investment quality of 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 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.

- 18 -

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 statements 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 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.

- 19 -

(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 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.

- 20 -

(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 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:

- 21 -

(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 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

- 22 -

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 28 Liberty Street, New York, NY 10005, 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 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

- 23 -

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 US 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 US 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 US 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 US Dollars so purchased is less than the sum originally due to such other party in US 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 US Dollars so purchased exceeds the sum originally due to such other party, such other party agrees to remit to such first party such excess.

- 24 -

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 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.

- 25 -

(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 -

23. Recognition of the U.S. Special Resolution Regimes.

(a) In the event that any Underwriter that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from such Underwriter of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.

(b) In the event that any Underwriter that is a Covered Entity or a BHC Act Affiliate of such Underwriter becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Underwriter are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.

(c) For purposes of this Section 25, the following definitions apply:

(i) “BHC Act Affiliate” has the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k).

(ii) “Covered Entity” means any of the following:

(A) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

(B) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

(C) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

(iii) “Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

(iv) “U.S. Special Resolution Regime” means each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.”

- 27 -

Very truly yours,
Corporación Andina de Fomento
By:	/s/ Antonio Recine
Name:	Antonio Recine
Title:	Director of Financial Policies and International Issues

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, Peru, and Trinidad and Tobago, 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.

Annex I-1

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]

Annex I-2

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
[●]	USD [●]
[●]	USD [●]
Total	USD [●]

SCHEDULE II

Title of Designated Securities:

[●] Notes due [●]

Aggregate principal amount:

USD [●]

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:

Redeemable in whole, but not part, for tax reasons

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 Financial Conduct 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

USD [●] of [●] Notes due 20[●]

Issuer:	Corporación Andina de Fomento
Ratings(1):	Moody’s: [●] / S&P: [●)] / Fitch: [●]
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:	[US Dollars]
Total Principal Amount:	USD [●]
Offering Price:	[●]% plus accrued interest, if any, from [●]
Gross Proceeds (excluding accrued interest):	USD [●]
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:	Redeemable in whole, but not part, for tax reasons
Sinking Fund Provisions:	[No sinking fund provisions]
Form:	Global note held by depositary or the depositary’s custodian

Denominations:	Denominations of USD 1,000.00 and integral multiples of USD 1,000.00 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 Financial Conduct 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:     USD [●] 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 USD [●] 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.

Annex II-1

(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.

Annex II-2

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

                 [US DOLLARS]

([USD]          ,          ,         )

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 [US 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 [US 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 one million US Dollars (USD 1,000,000.00)* 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 payments of principal and interest in respect of the Securities by or on behalf of CAF 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, levied, collected, withheld or assessed by or on behalf of any of the full member shareholder countries of CAF or any political subdivision therein or any authority 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, CAF will pay such additional amounts as will result in receipt by the Holder of Securities after such withholding or deduction of such amounts as would have been received by them had no such withholding or deduction been required, except that no such additional amounts shall be payable in respect of any Securities presented for payment:

(i) by or 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 having some connection with any of the full member shareholder countries of CAF other than the mere holding of the Security; or

(ii) if such withholding or deduction may be avoided by a Holder of a Security complying with a request of CAF relating to any certification, identification or other reporting concerning its nationality, residence, identity or connection with any full member shareholder country of CAF if the Holder is able to comply with the request without undue hardship and CAF has provided the notice in writing at least 60 days before such information is required to be provided by the Holder; or

(iii) more than 30 days after the Relevant Date, except to the extent that the Holder of such Security would have been entitled to such additional amounts on presenting such Security for payment on the last day of such period of 30 days; or

* 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 USD 1,000,000.00.

(iv) if such withholding or deduction is imposed or required pursuant to Sections 1471 through 1474 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b) of the Code, or any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code.

Any reference in this section to principal or interest shall be deemed to include any additional amounts in respect of principal or interest (as the case may be) which may be payable under this section.

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 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 Securities, notice to that effect will have been duly published as set forth herein.

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 amount of [            ] US Dollars (USD                     ), 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, other than such obligations as may be preferred by provisions of law that are both mandatory and of general application. “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 may be redeemed at our option in whole, but not in part [at any time]*[on any interest payment date]† on giving not less than 30 nor more than 60 days’ notice to the Holders of the Securities (which notice shall be irrevocable), at the principal amount of such Securities [or [insert other amount or provision for determining such other amount]], together with interest accrued (if any) to the date fixed for redemption, if:

* Include if floating rate note provisions are not applicable.

† Include if floating rate note provisions are applicable.

(i) CAF has or will become obliged to pay additional amounts as provided or referred to herein as a result of any change in, or amendment to, the laws or regulations of any of the full member shareholder countries of CAF or any political subdivision or any authority therein or thereof having power to tax, or any change in the application or official interpretation of such laws or regulations (including a holding by a court of competent jurisdiction), which change or amendment becomes effective on or after the date of issue of the first tranche of the Securities; and

(ii) such obligation cannot be avoided by CAF taking reasonable measures available to CAF,

provided, however, that no such notice of redemption shall be given earlier than [90 days prior to the earliest date on which CAF would be obliged to pay such additional amounts if a payment in respect of the Securities were then due]*[60 days prior to the interest payment date occurring immediately before the earliest date on which CAF would be obliged to pay such additional amounts if a payment in respect of the Securities were then due]†.

Prior to the publication of any notice of redemption pursuant to this section, CAF shall deliver to the Fiscal Agent (a) a certificate signed by two authorized officers of CAF stating that CAF is entitled to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the right of CAF so to redeem have occurred and (b) an opinion of independent legal advisers of recognized standing to the effect that CAF has or will become obliged to pay such additional amounts as a result of such change or amendment. Upon the expiration of any such notice as is referred to in this section, CAF shall be bound to redeem the Securities in accordance with this section.

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 one thousand [US Dollars ] ([USD]1,000.00) and integral multiples thereof), as an authorized representative of DTC shall request.]‡

* Include if floating rate note provisions are not applicable.

† Include if floating rate note provisions are applicable.

‡ Include if a Global Security.

[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 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.

* Include if Global Security

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 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 [US 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 one hundred million US Dollars (USD100,000,000.00) (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 one hundred million US Dollars (USD100,000,000.00) (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.

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.

*    *    *    *    *

* Include if a Global Security.

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

Lima, Peru, August 9, 2019

Dear Sirs:

In my capacity as 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 9, 2019, pursuant to which CAF proposes to offer from time to time up to an aggregate initial offering price of three billion U.S. dollars (USD 3,000,000,000.00) of its guarantees (the “Guarantees”) or its Debt Securities (the “Debt Securities”) of which five hundred million U.S. dollars (USD 500,000,000.00) were previously registered on the registration statement under Schedule B (File No. 333- 225593) originally filed by CAF on June 13, 2018 (the “2018 Registration Statement”).

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. In giving such consent, I do not thereby admit that I am in the category of persons whose consent is required under Section 7 of the United States Securities Act of 1933.

Very truly yours,

/s/ Octavio Rosselli

Octavio Rosselli

General Counsel to Corporación Andina de Fomento

EX-8.1

Exhibit 8.1

August 9, 2019

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 USD 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. Blandin, 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 under Schedule B of our reports dated February 15, 2019 relating to the financial statements as of and for the years ended December 31, 2018, 2017, and 2016 of CORPORACION ANDINA DE FOMENTO and the effectiveness of CORPORACION ANDINA DE FOMENTO’s internal control over financial reporting as of December 31, 2018, appearing in the Prospectus, which is a part of this Registration Statement, and to the reference to us under the headings “Selected Financial Information” and “Experts” in such Prospectus.

/s/ Deloitte

Caracas—Venezuela

August 9, 2019

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.