Corporación Andina de Fomento

L. Enrique García

President and CEOCorporación Andina de Fomento

October 2008

CAF is a Latin American multilateral financial institution which provides multiple financial services to public and private sector clients in the shareholder countries.

CAF is a competitive and versatile institution, both regionally and globally.

In operation since 1970, its headquarters are located in Caracas, Venezuela, with regional offices in Bogotá, Quito, Lima, La Paz, Madrid, Brasilia and Buenos Aires.

Corporación Andina de Fomento

2008

• Bolivia

• Colombia

• Ecuador

• Peru

• Venezuela

• Argentina

• Brazil

• Costa Rica

• Chile

• Jamaica

• Mexico

• Panama

• Paraguay

• Dominican Rep.

• Trinidad & Tobago

• Uruguay

• Spain

CAF’s Shareholders

• Letter of Intent (Guatemala & Italy)

Sustainable Development

Regional Integration

Pillars of CAF’s mission

Clients: Governments, financial institutions and public or private corporations and joint ventures

Loans

Short, medium and long term

Project finance

Structured finance

Co-financing and A/B loans

Equity investments, especially in Capital Funds

Investment bank and financial advisory services

Guarantees

Treasury products

Technical Cooperation

Strategic programs

Clients, products and services

CAF in figures (US$ million)

12/31/2007

2007 2006 Var (%)

Approvals 6,607 5,521 20%

Disbursment 5,844 2,923 100%

Total portfolio 9,615 8,191 17%

Total assets 12,597 10,439 21%

Loan portfolio 9,622 8,191 17%

Liabilities 8,470 6,747 26%

Bonds 4,637 4,362 6%

Net worth 4,127 3,693 12%

Net income 401 321 25%

ROE 10.5% 9.4%

ROA 3.6% 3.3%

Liq. / Finan. Liabilities 29.7% 29.4%

Non accruals / loan portfolio 0.0% 0.0%

Provisions / assets 1.8% 2.3%

    31/12/2007 (US$ millons)   

Authorized 5,000

Subscribed 3,157

Paid 2,015

Guaranteed 1,112

CAPITAL

6.534

11.729

13.664

23.681

1970-92 1993-97 1998-02 2003-07

37 year summary

Total Approvals(US$ Million)

Total Disbursements(US$ Million)

Total Portfolio(US$ Million)

4.896

8.203

9.197

14.289

1970-92 1993-97 1998-02 2003-07

845

3.288

6.180

9.615

1992 1997 2002 2007

Last five years of operations

3.303 3.503

4.746

5.521

6.607

2003 2004 2005 2006 2007

1.775 1.888 1.860

2.923

5.844

2003 2004 2005 2006 2007

6.7127.216

7.462

8.191

9.615

2003 2004 2005 2006 2007

Total Approvals(US$ Million)

Total Disbursements(US$ Million)

Total Portfolio(US$ Million)

Loan portfolio distribution

2007: Loan portfolio by country

Brazil8%

Ecuador23%

Peru19%

Colombia17%

Others3%

Venezuela15%

Argentina4%

Bolivia11%

Loan portfolio distribution

2007: Loan portfolio by sector

Economic infrastructure

27%

Integration infrastructure

12%

Structural reforms 13%

Social development

25%

Corporate sector 5%

Financial intermediation*

18%

Infrastructure

39%

* Intermediation toward SMEs through the financial system.

2007 Approvals (USD million)

Main source of multilateral financing for the Andean region...

IADB33%

WB4%

CAF63%

IADB30%

WB14%

CAF56%

2007 Approvals:USD 7,294 million

Approvals 2003-2007:USD 32,638 million

4.278

5.9295.451 5.600

5.854

9.894

1997-2001 2002-2006

IADB WB CAF

… and principal source of financing infrastructure in Latin America…

Approvals infrastructure in Latin America(USD million)

… especially in physical infrastructure of regional integration

During the last decade, CAF has

approved 56 operations of USD

4.553 million for the execution of

47 South American physical

integration projects with a total

investment exceeding USD

12.950 million.

EfficiencyProfitability

(ROE)

6,2

8,2

9,6 9,4

10,5

2003 2004 2005 2006 2007

11,0%

2,9%

1,0%0,7%

0,5%0,64%

0,58%

19

73

-81

19

82

-91

19

92

-96

19

97

-01

20

02

-06

20

06

20

07

Satisfactory financial indicators

Asset Quality

2,2

2,6

3,03,1

3,6

3,2 3,23,2

2,6

2,2 2,3

1,8

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Allowance / Loan portfolio

Consistent and positive evolution of CAF’s credit ratings

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Moody's

S&P

Fitch

JCR

Economic crisisMéxicoAsia

RussiaBrazil

ArgentinaA2/A

A3/A-

Baa1/BBB+

Baa2/BBB

Baa3/BBB-

A1/A+

Aa3/AA-

Ecuador

Subprime

CAF’s investment grade ratings

Costa R./Guatemala/Uruguay

Scale

CAF Chile

Trinidad & Tobago

Ba1Ba2Ba3B1B2B3Caa1Caa2Caa3n.a.Can.a..n.a.Cn.a.

AAAAA+AAAA-A+AA-BBB+BBBBBB-

AaaAa1Aa2Aa3A1A2A3Baa1Baa2Baa3

1

2

3

4

5

6

7

8

9

10

BB+BBBB-B+BB-CCC+CCCCCC-n.a.CCn.a..n.a.Cn.a.S.D

Chile

Mexico / Trinidad & Tobago

BB+BBBB-B+BB-CCC+CCCCCC-n.a.CCn.a..n.a.Cn.a.DDD

Peru

Brazil/ Pan/Colombia

Venezuela / Uruguay

Colombia/C.R/Pan/Brazil/PeruGuatemala

Bolivia Venezuela/Rep. D/Paraguay

Venezuela

Investm

en

t g

rad

e

AAAAA+AAAA-A+AA-BBB+BBBBBB-

Costa Rica

Bolivia / Ecuador

Brazil/Panama

/Argentina/ Ecuador

Jamaica

Bolivia

Non

-in

vestm

en

t g

rad

e

Mexico

Jamaica/UruguayJamaica/Paraguay/Argentina

Chile

Rep. Dom./ArgentinaRep.Dom.

Ecuador

Colombia/Peru

CAF’s special programs

Infrastructure Agenda

IIRSA Puebla-Panamá Plan (PPP) First- Class Ports Program Cross-border Integration and

development Program

Competitiveness, international insertion and public policies Agenda

Competitiveness Program (PAC) Corporate Governance Program Economic and Public Policy Research

Program MSMEs International Insertion Program

Environmental Agenda Latin America Carbon and Clean Energy

Program (PLAC) Cleaner Production Program (CPP) Biodiversity Program (BioCAF) Natural disaster risk management and

prevention Program Program for Sustainable Development in

Financial Institutions

Social Development Agenda

Potable water and sanitationEducationRural development HabitatSocial responsibilityGovernance

http://www.caf.comhttp://www.caf.com