Corporate profile 2008
2 Table of contents CAF s Agenda for Comprehensive Development p. 5 Products and services p. 11 Operations p. 15 Funding p. 23 Financial information p. 26 Governing bodies p. 30 Head and country offices p. 31
3 Corporación Andina de Fomento (CAF) is a multilateral financial institution that mobilizes resources from international markets to Latin America, in order to provide mul ti ple banking services to both public and private clients of its shareholder countries. The Institution is committed to sustainable development and regional integration. Established in 1970, in Caracas, Venezuela, CAF has country offices in Buenos Aires, Brasilia, La Paz, Bogota, Quito, Lima, Madrid, and Panama City. Its shareholders are: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Jamaica, Mexico, Panama, Paraguay, Peru, Spain, Trinidad & Tobago, Uruguay, Venezuela, and 14 private banks within the region.
4 CAF is committed to sustainable development and regional integration.
5 CAF s Agenda for Comprehensive Development The Agenda for Comprehensive Development proposed by CAF seeks high, sustained, and quality growth in Latin America. The attainment of these objectives needs to build on progress already achieved in macroeconomic stability, on improvements in microeconomic efficiency, and on assigning the highest priority to promoting equity, social inclusion, and poverty reduction, while maintaining environmental sustainability. The aim is to achieve greater productivity in order to facilitate competitive insertion in the World economy, while promoting increased social equity. This comprehensive vision is the result of an important research program on development issues and public policies sustained both in the intellectual effort of the Corporation itself, and in the dialogue processes with the public, private and academic sectors of Latin America. This has evolved into a series of specialized activities which complement CAF s financial and business strategies, aligned with its strategic objectives and aimed at providing institutional support to its shareholders. The special programs that follow gather the various initiatives of CAF s Agenda for Comprehensive Development, organized around four components of strategic interest: infrastructure; social development; the environment; and competitiveness, international insertion and public policies. Infrastructure AgendA The development of infrastructure is key for Latin American integration and development, in order to overcome geographic barriers, bring populations together across borders and promote economic opportunities. For these reasons, CAF supports the sustainable development of physical integration infrastructure and related logistical processes; promotes capital investment, particularly in the transportation, power and telecommunications sectors; and supports the cultural, social and environmental dimensions of integration, as well as cross-border integration processes. Initiative for the Integration of Regional Infrastructure in South America (IIRSA) Proyecto Mesoamérica First-Class Ports Program GeoSur Program Cross-Border Integration and Development Program (PADIF)
6 (USD millions) caf s contribution Total investment Andean Axis 1 Colombia: Buenaventura-Bogota Corridor 177.0 746.6 2 Ecuador: Amazonic connection with Colombia and Peru (Troncal del Oriente Road) 93.8 152.7 3 Ecuador: Segmented Bridge Project over the Babahoyo River 123.0 133.9 4 Peru: Rehabilitation of the Huancallo-Huancavelica Railroad 14.9 18.8 5 Venezuela: Railroad connection between Caracas and the National Network 360.0 1.932.0 6 Venezuela: Support for commercial navigation in the Orinoco-Apure River Axis 10.0 14.3 guyana Shield Axis 7 Brazil: Venezuela-Brazil Road Interconnection 86.0 168.0 8 Brazil: Venezuela-Brazil Electric Interconnection 86.0 210.9 9 Venezuela: Railroad Studies Guyana City-Maturin-State of Sucre 2.6 2.6 10 Venezuela: Road Studies Guyana City (Venezuela)-Georgetown (Guyana) 0.8 0.8 amazon Axis 11 Ecuador: Central Trans-Andean Connection 33.7 54.5 12 Ecuador: South Trans-Andean Corridor 70.0 110.2 13 Ecuador: International Cargo Transfer Port in the Port of Manta 35.0 525.0 14 Peru: Northern Amazon Road Corridor 110.0 328.0 15 Peru: Pre-investment border region with Ecuador 5.3 8.7 16 Peru: Central Amazon Corridor (Tingo Maria-Aguaytia-Pucallpa) 3.5 13.6 peru-brazil-bolivia Axis 17 Bolivia: Guayaramerin-Riberalta Highway 42.0 45.5 18 Brazil: Road Integration Program in the State of Rondonia 56.4 134.2 19 Peru: Southern Inter-Oceanic Road Corridor (tranches 2, 3, and 4) and guarantees for private structuring 804.5 1,615.0 central Inter-Oceanic Axis 20 Bolivia: Bolivia-Chile Road Integration Corridor 138.9 246.0 21 Bolivia: Santa Cruz-Puerto Suarez Road Integration Corridor (tranches 3, 4, and 5) 280.0 585.5 22 Bolivia: Bolivia-Argentina Road Integration Corridor 314.0 642.0 23 Bolivia: Bolivia-Paraguay Road Integration Corridor 60.0 182.6 24 Bolivia: Integration Y Road Program 70.0 102.4 25 Bolivia: La Guardia-Comarapa Road Rehabilitation 21.0 34.7 26 Bolivia/Brazil: Bolivia-Brazil Gas Pipeline 215.0 2,055.0 27 Bolivia: Support Program for the Transportation Sector PAST IV 22.4 32.3 28 Bolivia: Transredes Gas Pipeline 88.0 262.8 29 Peru: Bolivia-Peru Road Integration Corridor 48.9 176.6 mercosur-chile Axis 30 Argentina-Brazil: Paso los Libres-Uruguaiana Border Center 10.0 10.0 31 Argentina: Buenos Aires-Santiago Corridor (Laguna La Picasa Alternate Route) 10.0 10.0 32 Argentina: Buenos Aires-Santiago Corridor (Laguna La Picasa Alternate Railroad Route) 35.0 50.0 33 Argentina: Buenos Aires-Santiago Corridor (access to Paso Pehuenche, RN40 and RN145) 106.7 188.1 34 Argentina: Electrical Interconnection Rincón Santa María Rodríguez 400.0 635.0 35 Argentina: Electrical Interconnection Comahue-Cuyo 200.0 414.0 36 Argentina: Road Integration Program between Argentina and Paraguay 110.0 182.0 37 Brazil: Regional Integration Program-Phase I. State of Santa Catarina 32.6 65.5 38 Uruguay: Mega-lease of the Main Road Connections with Argentina and Brazil 25.0 136.5 39 Uruguay: Road Infrastructure Program Phase II and III 140.0 615.4 40 Uruguay: Program to Strengthen the National Electrical System 150.0 621.0 41 Uruguay: Thermal Plant Project Punta del Tigre 28.0 165.4 capricorn Axis 42 Argentina: RN81 Pavement 90.2 126.2 43 Argentina: Access to the Jama Pass (Argentina-Chile) 54.0 54.0 44 Argentina: Studies for the Rehabilitation of the Jujuy-La Quiaca Railroad 1.0 1.0 45 Bolivia: Tarija-Bermejo Highway Program 74.8 200.0 46 Paraguay: Rehabilitation and pavement of the RN10 and RN11 Integration Corridors and complementary works. 19.5 41.9 paraguay-parana Waterway Axis 47 Studies to improve navigation, institutional management, and financial schemes for 0.9 1.1 the operation of the Argentina, Bolivia, Brazil, Paraguay, and Uruguay Waterway 48 Argentina: Railroad works Program for the Integration of Argentina and Paraguay 100.0 166.0 mesoamerica 49 Costa Rica: Investment Program in the Atlantic Corridor 60.0 80.2 50 Panama: Highway rehabilitation and improvements program 80.0 125.6 51 Panama: Binational Bridge over the Sixaola River 5.5 13.4 52 Panama: Panama Canal Authority, expansion program 300.0 5,250.0 Other 210.0 812.0 Total 5,615.9 20,499.5
7 Physical integration projects financed by CAF 49 51 50 52 1 11 13 3 2 12 15 14 Riohacha P. Fijo Coro Pto. Cabello Barranquilla Maracay Barcelona COSTA RICA Caracas Cumaná Cartagena Maracaibo Cabimas San José Barquisimeto Maturín PANAMA Trujillo Calabozo El Tigre Tucupita San Fernando Ciudad Guayana de Apure Cúcuta Mérida San Cristóbal Tumeremo Arauca VENEZUELA Bartica Georgetown New Medellín Pto. Carreño Pto. Páez Paramaribo Nickerie Linden Manizales Tunja GUYANA Albina Bogotá SURINAME GUAYANA Cayenne Buenaventura Cali Ibague Villavicencio COLOMBIA Boa Vista Lethem FRANCESA Popayán Pasto Esmeraldas Mocoa La Bonita Ibarra Mapacá Quito Belém Tumaco Manta Tena Ambato Santarém Salinas ECUADOR Altamira Guayaquil Cuenca Iquitos Manaus Itatuba Machala Loja Talara PERU Paita Piura Jaen Yurimaguas Olmos Tarapoto Humaitá Chiclayo Cruzeiro do Sul Porto Velho Trujillo Chimbote Huaraz Pucallpa Tingo María Rio Branco Iñapari BRAZIL Riberalta Lima Huancayo Callao Ayacucho Cusco Pto. Maldonado Cuiabá Puno Arequipa BOLIVIA Brasilia Itabuna La Paz Desaguadero Matarani Cochamba Golânia Moquegua Ilo Oruro Sta. Cruz Arica Toledo Sucre Pto. Suárez Corumba Colchane Pisiga Potosí Gral. Eugenio Uberlandia Iquique A Garay Campo Grande Belo Horizonte Tupizá Tarija Inf. Rivarola Vallemí La Quiaca Mcal Estigarribia Yacuiba P. J. Caballero Río de Janeiro Mejillones BermejoPARAGUAY Concepción Antofagasta San Salvador del Jujuy Salta Asunción Santos Formosa Ciudad del Este Curitiba San Miguel de Tucumán Encarnación Copiapo Resistencia Posadas Palhoça Santiago del Estero Laguna CHILE Caxias do Sul La Serena La Rioja ARGENTINA Córdoba Villa María Mendoza San Luis Valparaíso San Antonio Santiago Mercedes San Rafael Concepción Talca Victoria Pto. Montt Esquel Neuquén San Carlos de Bariloche Sta. Rosa Comodoro Rivadavia Mar del Plata Bahía Blanca Viedma Pto. Madryn Po. de Los Libres Uruguaina Porto Alegre Artigas Rivera Salto Osorio Paysandu Rosario Río Grande URUGUAY Río Branco Treinta y Tres Colonia Junín Montevideo Buenos Aires Leyend Teresina Sousa Fortaleza Aracaju Feria de Sanana Natal Campina Grande 16 17 Recife 18 4 19 29 21 24 27 25 20 28 22 26 45 44 23 46 43 42 47 37 36 48 32 31 33 35 5 9 6 10 8 30 34 38 40 39 41 Existing road system Roads, CAF project Gas pipe, CAF project Railroad, CAF project Electrical inter-connection, CAF project Border pass, CAF project Bridge Waterways Hydroelectric plant Thermal plant Nation s capital Other cities Ports Panama Canal This map has been created by CAF with illustrative purposes only. Therefore, borders, colors, denominations, or any other information shown, does not imply any judgement over the legal situation of any territory, or border recognition by the Institution. 7
8 Social Development Agenda CAF s social development agenda finances social investment projects, supports the institutional strengthening of public agencies, and promotes a variety of other activities from a renewed corporate social responsibility perspective. Its objective is to foster comprehensive human development in which the citizen is the key player in his geographic and community contexts. Integrated Water Program Ensure Social Investment Program Program for the Modernization of Technical and Technological Education Rural Development Program Social Responsibility Program Governance Program Environmental Agenda CAF promotes the conservation and sustainable use of ecosystems and natural resources by supporting conservation and renovation projects. It promotes and develops environment-related markets; strengthens the level and quality of environmental investments; provides institutional support and promotes social and environmental responsibility in shareholder countries and within the Institution. Biodiversity Program (BioCAF) Latin American Carbon and Clean Energies Program (PLAC +e ) Natural Disaster Risk Prevention Program Cleaner Cities and Industries Program (CCIP) Program for Sustainable Development in Financial Institutions Agenda for Competitiveness, International Insertion and Public Policies CAF promotes the development of productive and human capital; contributes to the competitiveness of the economies of member countries, micro enterprises and other sectors with limited access to financial capital; supports the development of governmental institutions; contributes to public policy consensus; and supports economic integration and international insertion processes. Competitiveness Program (PAC) Access to Micro, Small, and Medium-sized Enterprises (MSMEs) Corporate Governance Program International Insertion Program Economic and Public Policy Research Program Economic and Public Policy Research Program
9 CAF contributes to strengthening the capacities and talents of sectors traditionally excluded from society.
10 CAF offers financial products and services to shareholder countries as well as to public and private enterprises.
11 Products and services The products and services offered by CAF are mainly aimed a supporting the implementation of its Agenda for Comprehensive Development and its special programs. They include a series of financial tools designed to meet clients requirements and market opportunities. Loans Loans represent CAF s main financing tool. They are employed in investment projects and activities related to the Institution s corporate mission. Project financing Project financing loans are allocated to develop and execute projects in road transportation, telecommunications, water and environment, border development and the physical integration of shareholder countries. CAF also provides financing to corporate projects in the industrial field, to enhance and renovate productive capacity and to insert businesses into regional and global markets. Credit lines Credit lines allow the Institution to offer maximum resources for a given period without an express commitment by the client. Project structuring and financing CAF actively participates in the financing of projects structured with limited guarantees (limited recourse lending). This category is mainly utilized for the financing of Build, Operate and Own (BOO) operations in the infrastructure sector, generally arising from concessions granted by governments, or to finance oil and gas, mining and other extractive projects. Co-financing Co-financing is a type of loan that complements financial resources provided by CAF and attracts external capital to the region. Through these instruments, the Institution grants the A portion of the loan using its own resources, while distributing the B portion among international banks and institutional investors. In addition, CAF co-finances operations with other multilateral organizations, such as the Inter-American Development Bank, the World Bank, the International Investment Corporation, the Nordic Investment Bank, the International Finance Corporation and the International Fund for Agricultural Development, as well as with official bodies and local and international private banks.
12 Guarantees Guarantees are used by the Institution to back up credit operations approved by other sources for governments, businesses and financial institutions. Partial Credit Guarantees Partial Credit Guarantees (PCG) are financial instruments through which a portion of the credit risk of a client s obligation is guaranteed to a third party. Through this mechanism, CAF attracts fresh resources to the region and stimulates the activities of private financial sources by offering conditions that would otherwise not be available. Financial advice The Institution provides financial advice to public and private sector clients. Among other services, CAF offers advice in: i) the definition and structuring of financing plans for projects and companies; ii) the design and implementation of public bid processes to delegate the private sector the construction, operation and administration of infrastructure and public services works, such as public-private partnerships and concessions; iii) preparation of private sector offers to participate in public bids processes; iv) mergers and acquisitions; and v) valuations. Public-Private Participations CAF actively participates in the structuring of financial operations with the private sector, seeking to overcome the scarcity of funds available to finance infrastructure projects. Through these participations, CAF contributes to the process of financial engineering necessary to structure these types of operations, offers advice to the parties involved, and favors the development and strengthening of capital markets. Treasury services Treasury services include deposits via the money desk, with maturities that range from overnight to 12 months. The services are offered by CAF to its shareholder countries. Equity investments Equity investments are capital investments utilized by CAF to support business development in shareholder countries and their access to capital, as well as to attract resources to the region. Cooperation funds CAF uses cooperation funds to finance specialized operations that complement the existing technical capacity of shareholder countries, to promote special programs that contribute to sustainable development and regional integration. These funds are either reimbursable, non-reimbursable or conditional recovery, depending on the nature and purpose of the operation.
13 Others funds Entrepreneurial Investment and Development Fund (FIDE) Supports the strengthening of the capital base of SMEs in shareholder countries through capital, quasi capital, and credit operations. Activities are implemented through alliances with venture capital funds, banks, large industries, and guarantee funds. Compensatory Financing Fund (FFC) Promotes the execution of projects aimed at reducing regional asymmetries, helping excluded populations and promoting the integration of regional infrastructure. Allocates resources in order to reduce the financial costs of projects that meet certain eligibility criteria. Latin American Carbon, Clean and Alternative Energies Program (PLAC +e ) Self sustainable initiative to support and strengthen the institutions and national mechanisms that stimulate the use of the different markets of Greenhouse Effect Gases, by identifying, developing, and financing projects related to clean, alternative, and efficient energy in Latin America. main cooperation funds Technical Assistance Fund (FAT) Human Development Fund (FONDESHU) Fund for the Promotion of Sustainable Infrastructure Projects (PROINFRA) Bolivia Special Fund (FEB) and Ecuador Special Fund (FEE) Canadian Agency Fund (ACDI) and Spanish Technical Cooperation Fund (FECT) Andean Energy Conservation Fund (FACE) German Fund or Kreditanstalt für Wiederaufbau (KfW) Cross Border Cooperation and Integration Fund (COPIF) Concentrates most of the special sources of financing. Its mission is to provide support for projects and programs in shareholder countries. Provides financial support for the implementation of high impact, innovative, and productive community projects aimed at the most vulnerable social sectors. Allocates resources to finance diagnostic studies of sectoral problems, appropriate technology, and pre investment studies for integration infrastructure projects, previously prioritized by the countries. Resources are assigned to projects that promote regional integration infrastructure, incorporating innovative financing mechanisms. Finance the technical assistance and economic priorities in these countries. Created in 1998, both Funds are included in the Agreement Establishing CAF. Represent financing sources for the region s development through Canadian and Spanish consulting firms. The Spanish Ministry of Economy manages the operations of the Spanish contribution, while the Canadian International Development Agency (CIDA) operates from the Canadian Embassies in each of the requesting countries. Provides resources for consulting and training in the area of energy source conservation in the Andean countries. Allocates resources for consulting on integration projects in the least favored regions of CAF member countries. Supports the timely identification, preparation, and execution of projects of high impact that promote sustainable human development in the border regions of member countries. Contributes to the strengthening of cooperation, dialogue, mutual trust, and cross border integration both at a bilateral and multilateral level.
14 During 2008, CAF continued supporting the infrastructure and social development areas.
15 Operations APPROVALS 2004-2008 (in millions of USD) 7 6 5 4 3 2 1 3,503 4,746 5,521 6,607 7,946 0 2004 2005 2006 2007 2008 FIVE-YEAR PERIODS (in millions of USD) 35 30 25 28,323 20 15 10 5 0 14,295 5,521 3,503 1989-1993 1994-1998 1999-2003 2004-2008
16 APpROvAls BY STRATEGIC AREA 2008 Cooperations founds 0.5% Financial systems* 42.5% 6.4% Social and environmental development 27.4% Economic infrastructure 33.3% Infrastructure Productive sector 7.3% 10.0% Structural reforms 5.9% Integration infrastructure *Channeled mainly thorough short and long-term credit lines managed by financial institutions to support the development of small and medium-sized enterprises. BY COUNTRY 2008 Brazil 22.6% Peru 18.3% Paraguay 0.1% Panama 8.0% Mexico 0.1% Ecuador 7.6% 0.9% Dominican Republic 7.6% Uruguay 1.4% Others 5.2% Argentina 0.9% Venezuela 7.0% Bolivia 1.5% Costa Rica 18.7% Colombia
17 DISBURSEMENTS 2004-2008 (in millions of USD) 5 4 5,844 5,292 3 2 1 1,888 1,860 2,923 0 2004 2005 2006 2007 2008 FIVE-YEAR PERIODS (in millions of USD) 25 20 15 10 5 0 17,806 8,809 8,776 5,311 1989-1993 1994-1998 1999-2003 2004-2008
18 PORTFOLIO 2004-2008 (in millions of USD) 10 8 6 7,216 7,462 8,191 9,622 10,259 4 2 0 2004 2005 2006 2007 2008 FIVE YEAR PERIODS (in millions of USD) 10 10,259 8 6 4 2 0 6,712 3,739 1,562 1989-1993 1994-1998 1999-2003 2004-2008
19 BY ECONOMIC SECTOR 2008 Social development 23% Infrastructure 46% Macro economic stabilization and structural reforms 10% Development banking 2% Manufacturing 4% Mining 1% Commercial banking 14% Transportation 30,9% Telecommunications 0,3% 14,7% Energy BY COUNTRY 2008 Others 0.9% Venezuela 15.0% Uruguay 2.3% Peru 17.3% 6.8% Argentina 10.8% Bolivia 0.7% Panama 8.0% Brazil 0.4% Paraguay Dominican Republic 0.5% Ecuador 19.7% 16.6% Colombia 1.0% Costa Rica BY INSTITUCIONAL SECTOR Private sector 24% Public sector 76%
20 COOPERATION FUNDS SOURCES OF THE MAIN COOPERATION FUNDS 2008 Other 13% PROINFRA 18% 56% FAT FONDESHU 13% UTILIZATION OF THE MAIN COOPERATION FUNDS 2008 Social development 5% Community development 7% 6% Other Infrastructure and integration 24% Competitiveness 27% Culture 2% Sustainable development 5% 5% Microfinance 2% HIPC* 17% Governance * Highly Indebted Poor Countries.
21 CAF develops an environmental agenda as a contribution to the conservation and sustainable use of ecosystems and natural resources.
22 FINANCING SOURCES AS OF DECEMBER 31, 2008 Term deposits 29.3% 55.0% Bonds Commercial paper 7.0% Advances and short term loans 1.5% Loans and other obligations 7.2% CAF borrows efficiently and competitively in the international capital markets through a funding strategy that aims to diversify sources of financing, mitigate interest rate and currency risks, and to adequately match the average maturities of its assets and liabilities.
23 Funding CREDIT RATINGS Since 1993, CAF has borrowed over USD 9.4 billion through 66 bond issues in the most important international capital markets in the United States, Europe, Japan, and various Latin American markets. Long term short term Fitch Ratings A+ F1 Japan Credit Rating Agency AA- Moody s Investors Service A1 P-1 Standard & Poor s* A+ A-1 * Negative outlook. The following factors have made CAF the highest-rated frequent issuer in Latin America. Profitability and sustained growth Excellent credit quality High liquidity levels Strong capitalization Preferred creditor status Continuous shareholder support Broad client base CAF also maintains a permanent presence in short-term capital markets, through various commercial paper programs in the United States (USD 1 billion) and Europe (USD 1 billion) and promissory notes in Spain ( 500 million).
24 2008 Debt Issues in the International Markets amount in original currency of issuance Equivalent in Date Market (in millions) USD million Bond Issuance January Yankee USD 250 250 May Mexican MXP 800 76 August Swiss CHF 200 194 December Colombian COP 150,250 68 December Colombian COP 94,250 43 Sub-total 2008 631 Total 1993-2008 9,262 Short-Term Issuance Programs Commercial Paper (US) USD 1,000 1,000 Commercial Paper (Europe) USD 1,000 1,000 Short-term Note (Spain) EUR 500 736 Total 2008 2,655
25 The Southern Interoceanic Road Corridor is considered the largest asphalt road project in Peru.
26 FINANCINal information Balance sheet / (December 31, in USD thousand) 2008 2007 Assets Liquidity 3,282,146 2,457,555 Loan portfolio 10,184,070 9,547,987 Allowances for potential losses -143,167-168,257 Capital investments 75,066 74,317 Other assets 881,272 685,585 Total assets 14,279,387 12,597,187 Liabilities Deposits 2,773,934 1,521,047 Securities under repurchace agreements 0 0 Commercial paper 665,621 888,246 Advances and short-term loans 139,600 398,931 Bonds 5,207,250 4,637,140 Loans and other obligations 684,031 808,487 Other liabilities 255,122 216,027 Total liabilities 9,725,558 8,469,878 Shareholders equity Subscribed and paid-in capital (authorized capital USD 5,000 million) 2,176,430 2,014,750 Reserves 1,785,754 1,477,405 Retained earnings and other 591,645 635,154 Total shareholders equity 4,553,829 4,127,309 Total liabilities and shareholders equity 14,279,387 12,597,187 Balance sheet AS OF december 31, each year (in millions of USD) ASSETS LIABILITIES AND NET WORTH 14,000 3,281 14,000 9,719 12,000 2,458 12,000 8,463 10,000 8,000 6,000 1,727 7,104 1,788 7,347 1,931 8,097 9,548 10,184 10,000 8,000 6,000 6,793 6,303 6,747 4,000 2,000 4,000 2,000 2,793 3,237 3,693 4,127 4,554 0 0 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 Liquidity Loan portfolio Others assets Liabilities Net worth
27 Income statement / For the year ended December 31 of, (in USD thousand) 2008 2007 Revenues Interests 652,075 823,644 Other 23,013 31,537 Total revenues 675,088 855,181 Expenses Interests 327,711 413,929 Allowances -22,970-23,133 Administrative 56,482 51,195 Other 2475 12,391 Total expenses 363,698 454,382 Net income 311,390 400,799 Net income and profitability for the years ended december 31 NET INCOME (in millions of USD) PROFITABILITY 700 600 500 400 300 200 100 0 14 12 10.5% 10 9.6% 9.4% 8.2% 8 401 7.2% 321 283 311 6 5.3% 5.3% 208 4 3.7% 3.1% 2 2.3% 3.0% 3.3% 3.6% 1.8% 2.4% 0 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 ROA 6 month LIBOR ROE
28 Main financial ratios / (As of December 31 of) 2008 2007 Profitability ROA 2.4% 3.6% ROE 7.2% 10.5% Net interest margin 2.6% 4.1% Asset quality Overdues (in USD thousand) 112 0 Loans in non-accrual status (in USD thousand) 0 0 Overdues as a percentage of loan portfolio 0% 0% Allowances as a percentage of a loan portfolio 1.4% 1.8% Write-offs (in USD thousand) 4,000 188 Capitalization Gaering (times) 2.3 2.4 Leverage (times) 2.1 2.0 Capital/Risk Weighted Assets (BASEL II) 37.4% 36.3% Liquidity Liquid assets/financial liabilities 34.7% 29.8% Liquid assets/total assets 23.0% 19.5%
29 Paid-in Capital / As of December 31, 2008 (in USD thousand) ordinary Capital Stockholders series A Series B Seriea C Total ordinary % Bolivia 1,200 144,330 145,530 6.7% Colombia 1,200 512,100 513,300 23.6% Ecuador 1,200 145,510 146,710 6.7% Peru 1,200 514,005 515,205 23.7% Venezuela 1,200 513,995 515,195 23.7% Argentina 87,405 87,405 4.0% Brazil 65,100 65,100 3.0% Spain 60,245 60,245 2.8% Uruguay 30,435 30,435 1.4% Chile 21,380 21,380 1.0% Mexico 18,190 18,190 0.8% Panama 17,830 17,830 0.8% Costa Rica 12,695 12,695 0.6% Dominican Republic 17,240 17,240 0.8% Paraguay 7,050 7,050 0.3% Trinidad & Tobago 800 800 0.0% Jamaica 705 705 0.0% Commercial banks 1,415 1,415 0.1% Total 6,000 1,831,355 339,075 2,176,430 100.0%
30 Governing bodies Shareholders Assembly 1 The Shareholders Assembly is CAF s highest authority. It meets in Ordinary sessions once a year, within ninety days following the end of the fiscal year; and in Extraordinary sessions, according to need. In both cases, it is convened by the Executive President. The Assembly is comprised of Series A, B and C shareholders. The Assembly approves Annual Report of the Board of Directors, the audited financial statements, and determines the allocation of net income. In addition, it elects Board members, according to the provisions set forth in the Agreement establishing the Corporación Andina de Fomento, appoints the external auditors and examines other issues submitted to its consideration. Board of Directors 2 The Board of Directors is comprised of thirteen principal members and their alternates. Ten of its members are elected by Series A and B shareholders, for a three-year period, and may be re-elected. Series C shareholders have two principal directors and their alternates, while banks and private financial institutions within the Andean region, which are Series B shareholders, have one director and his/her alternate. The Board establishes the Corporation s policies, appoints the Executive President, approves credit operations, the annual budget, and approves guarantees, investments and other operations within CAF s mandate. Approvals of certain operations are delegated to the Executive Committee or the Executive President, according to criteria set forth by the Board. The Executive Committee meets with a quorum of at least seven of its members. Executive Committee The Executive Committee was established by the Board of Directors in 1971. It is comprised of six directors designated by Series A, B and C shareholders, and is chaired by the Executive President. It approves financial operations within the limits established by the Board. Audit Committee 3 The Audit Committee was established by the Board of Directors in July, 1996. It is comprised of six members: the Chairman of the Board, four directors elected by the Board for a two-year period, and CAF s Executive President. It recommends the selection of external auditors and reviews their annual work program. It also reviews the Institution s annual report and financial statements, with the corresponding auditors opinion, before their submission to the Board and Shareholders Assembly, the Internal Audit Reports on the structure of internal control systems; the annual portfolio risk management program and the annual report of its implementation. 1 The XXXIX Ordinary Shareholders Meeting was held on March 25 th, 2008, and the XI Extraordinary Shareholders Meeting. 2 During 2008, three Board of Directors Meetings were held: March 25 th, July 10 th, and December 2 nd. 3 The XV Audit Committee was held on March 29 th. Executive President The Executive President is CAF s legal representative. As CEO, he is in charge of the Institution s overall supervision and management, as well as all matters which are not specifically entrusted to any other governing body. Likewise, he approves CAF s country and sector strategies, decides on organizational and procedural issues under his authority, and authorizes the Institution s financial operations within the limits delegated to him by the Board of Directors. The Executive President is assisted by and Advisory Council composed of experts from the economic, business, and financial communities of the region, whose main task is to support the President in the analysis of CAF s strategic objectives. The Executive President is appointed for a five year period, and may be re-elected.
31 Head and country offices Head Office Venezuela Av. Luis Roche, Torre CAF, Altamira, Caracas Telephone: +58 (212) 209.2111 (master) Fax: +58 (212) 209.2444 Investor Relations: investorinformation@caf.com infocaf@caf.com Ecuador Av. 12 de Octubre N. 24-562 y Cordero, Edificio World Trade Center, Torre A, piso 13, Quito Telephone: +593 (2) 222.4080 (master) Fax: +593 (2) 222.2107 E-mail: ecuador@caf.com Argentina Av. Eduardo Madero, N 900, Edificio Catalinas Plaza, piso 9, C1106ACV, Ciudad de Buenos Aires Telephone: +54 (11) 4310.1111 (master) E-mail: argentina@caf.com Panama Torre de las Américas, Torre B, piso 15, Punta Pacífica, Ciudad de Panamá Telephone: +507 282.7374 (master) Fax: +507 282.7406 E-mail: panama@caf.com Bolivia Av. Arce, N 2915, Zona San Jorge, La Paz Telephone: +591 (2) 244.3333 (master) Fax: +591 (2) 243.3304 E-mail: bolivia@caf.com Brazil SAU/S, Cuadra 01, Lote 1/2, Bloco M/N, Edificio Libertas, Salas 1404 a 1409, 70070-010, Brasilia-DF Telephone: +55 (61) 3226.8414 Fax: +55 (61) 3225.0633 E-mail: brasil@caf.com Colombia Carrera 9ª, N 76-49, Edificio ING, piso 7, Bogotá Telephone: +57 (1) 313.2311 (master) Fax: +57 (1) 313.2787 E-mail: colombia@caf.com Peru Av. Enrique Canaval y Moreyra N 380, Edificio Torre Siglo XXI, piso 9, San Isidro, Lima 27 Telephone: +51 (1) 221.3566 (master) Fax: +51 (1) 221.0968 P.O. Box: Serpost, casilla 1020, Lima 18 E-mail: peru@caf.com Spain Plaza Pablo Ruiz Picasso, Torre Picasso, planta 24, # 28020, Madrid Telephone: +34 (91) 597.3894 (master) Fax: +34 (91) 597.4927 E-mail: espana@caf.com www.caf.com
32 CAF s Headquarters. Caracas, Venezuela.