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 AGEnDAThe 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 210.0 812.0Total 5,615.9 20,499.5

7

LeyendExisting road systemRoads, CAF projectGas pipe, CAF projectRailroad, CAF projectElectrical inter-connection, CAF projectBorder pass, CAF projectBridgeWaterwaysHydroelectric plantThermal plantNation’s capitalOther citiesPortsPanama Canal

RiohachaBarranquilla

CartagenaSan JoséPANAMA

COSTA RICA

Medellín

Manizales

Buenaventura

Maracaibo

P. Fijo Coro

TunjaBogotá

Caracas

IbagueCOLOMBIACali

Popayán

TumacoPasto MocoaEsmeraldas La Bonita

IbarraQuito

TenaMantaAmbato

Salinas

CuencaMachala

Loja

Iquitos

PERUTalaraPaita

Piura JaenOlmos

Yurimaguas

Cruzeiro do Sul

PucallpaTingo María

Rio Branco

Iñapari

Lima Huancayo

Ayacucho

Arequipa

Matarani

Puno

IloArica

MoqueguaOruro

Cochamba

SucrePisigaColchane

Toledo

Potosí

TupizáLa Quiaca

MejillonesAntofagasta

Sta. Cruz

Pto. SuárezGral. EugenioA Garay

Tarija Inf. Rivarola

YacuibaBermejo

Salta

Copiapo

La Serena ARGENTINACórdoba

MendozaVilla María

San LuisValparaísoSan Antonio Santiago Mercedes

San RafaelTalca

Concepción

Victoria

Pto. Montt

Esquel

Comodoro Rivadavia

San Carlos de Bariloche

NeuquénBahía Blanca

Sta.Rosa

Viedma

Mar del Plata

JunínColonia

Treinta y TresRosario

SaltoPaysanduURUGUAY

RiveraOsorioRío Grande

Río Branco

ArtigasUruguaina

Po. de Los Libres

Resistencia Posadas

Caxias do SulLagunaPalhoça

Encarnación

CuritibaCiudad del EsteFormosa

Asunción

Concepción

P. J. Caballero

Campo Grande

CorumbaUberlandia

Golânia

Río de Janeiro

Belo Horizonte

Itabuna

Feria de Sanana

Aracaju

Recife

Campina GrandeSousa

Natal

Teresina

BelémMapacá

AltamiraSantarém

Itatuba

Boa Vista LethemGUAYANAFRANCESA

SURINAMEGUYANA

VENEZUELA

CayenneAlbinaLinden

ParamariboGeorgetownBartica

Tumeremo

Ciudad Guayana

TucupitaMaturín

El Tigre

CumanáBarcelona

Pto. CabelloMaracay

NewNickerie

Manaus

Humaitá

Porto Velho

Riberalta

Cuiabá

BRAZIL

Fortaleza

Brasilia

Santos

Porto Alegre

Buenos AiresMontevideo

Pto. Madryn

La RiojaCHILE

Santiagodel Estero

San Miguelde Tucumán

San Salvadordel Jujuy

Mcal EstigarribiaVallemí

BOLIVIA

PARAGUAY

La PazDesaguadero

Iquique

Cusco Pto. MaldonadoCallao

Tarapoto

Chiclayo

Trujillo

ChimboteHuaraz

Guayaquil

ECUADOR

Villavicencio

CabimasBarquisimeto

Trujillo CalabozoSan Fernandode ApureCúcuta Mérida

San CristóbalAraucaPto. Carreño Pto. Páez

1

51

49

5052

2

11

12

1415

16

419

17 18

20

29 21

2228

44

4323 46

26

42

47 37

35 333132

34

394038

30

5

6

9

810

7

313

2425

27

45

36 48

41

physical inTegraTion projecTs financed by caf

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.

8

Social Development agenDacaF’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 aGEnDacaF 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 PolICIEScaF 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 develop-ment 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.

loansLoans represent CAF’s main financing tool. They are employed in investment projects and activities related to the Institution’s corporate mission.

Project financingProject financing loans are allocated to develop and execute projects in road transportation, telecommunications, water and environment, border develop-ment 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 linesCredit lines allow the Institution to offer maximum resources for a given period without an express commitment by the client.

Project structuring and financingCAF 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-financingCo-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

gUaranTeesGuarantees are used by the Institution to back up credit operations approved by other sources for governments, businesses and financial institutions.

Partial Credit GuaranteesPartial 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 adviceThe 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-pri-vate partnerships and concessions; iii) preparation of private sector offers to par-ticipate in public bids processes; iv) mergers and acquisitions; and v) valuations.

Public-Private ParticipationsCAF 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 servicesTreasury 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 invesTmenTsEquity 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 fUndsCAF 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 fundsentrepreneurial 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) concentrates most of the special sources of financing. its mission is to provide support for projects

and programs in shareholder countries.

human development fund provides financial support for the implementation of high impact, innovative, and productive

(fOndeshu) community projects aimed at the most vulnerable social sectors.

fund for the promotion of allocates resources to finance diagnostic studies of sectoral problems, appropriate technology,

sustainable infrastructure and pre–investment studies for integration infrastructure projects, previously prioritized by the

projects (prOinfra) countries. Resources are assigned to projects that promote regional integration infrastructure,

incorporating innovative financing mechanisms.

Bolivia special fund (feB) and Finance the technical assistance and economic priorities in these countries. created in 1998, both

ecuador special fund (fee) Funds are included in the agreement establishing caF.

canadian agency fund (acdi) Represent financing sources for the region’s development through Canadian and Spanish consulting

and spanish technical firms. the Spanish ministry of economy manages the operations of the Spanish contribution, while

cooperation fund (fect) the canadian international Development agency (ciDa) operates from the canadian embassies in

each of the requesting countries.

andean energy conservation provides resources for consulting and training in the area of energy source conservation in the

fund (face) andean countries.

German fund or Kreditanstalt allocates resources for consulting on integration projects in the least favored regions of caF

für Wiederaufbau (KfW) member countries.

cross Border cooperation and Supports the timely identification, preparation, and execution of projects of high impact that

integration fund (cOpif) 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 2005 2006 2007 2008

2004-2008 (in millions of USD)

7

6

5

4

3

2

1

0

3,503

4,746

5,521

6,607

7,946

1989-1993 1994-1998 1999-2003 2004-2008

FIVE-YEAR PERIODS (in millions of USD)

35

30

25

20

15

10

5

03,503

5,521

14,295

28,323

16

Financialsystems* 42.5%

BY STRATEGIC AREA 2008

6.4% Social andenvironmental

development

10.0% Structuralreforms

33.3%Infrastructure

27.4% Economicinfrastructure

5.9% Integrationinfrastructure

Cooperationsfounds 0.5%

Productive sector 7.3%

Brazil 22.6%

Peru 18.3%

Paraguay 0.1%

Panama 8.0%

Mexico 0.1%Ecuador 7.6%

BY COUNTRY 2008

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

approvals

*Channeled mainly thorough short and long-term credit lines managed by financial institutions to support the development of small and medium-sized enterprises.

17

disBursements

2004 2005 2006 2007 2008

2004-2008 (in millions of USD)

5

4

3

2

1

0

1,888 1,860

2,923

5,8445,292

1989-1993 1994-1998 1999-2003 2004-2008

FIVE-YEAR PERIODS (in millions of USD)

25

20

15

10

5

0

5,311

8,809 8,776

17,806

18

porTfolio

2004 2005 2006 2007 2008

7,216 7,4628,191

9,62210,259

2004-2008 (in millions of USD)

10

8

6

4

2

0

1989-1993 1994-1998 1999-2003 2004-2008

FIVE YEAR PERIODS (in millions of USD)

10

8

6

4

2

01,562

3,739

6,712

10,259

19

BY ECONOMIC SECTOR 2008

Social development 23%

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

Infrastructure46%

Others 0.9%

Venezuela 15.0%

Uruguay 2.3%

Peru 17.3%

Dominican Republic 0.5%

Ecuador 19.7%

BY COUNTRY 2008

6.8% Argentina

10.8% Bolivia

0.7% Panama

8.0% Brazil

0.4% Paraguay

16.6% Colombia

1.0% Costa Rica

Private sector 24%

Public sector 76%

BY INSTITUCIONAL SECTOR

20

cooperaTion fUnds

Other 13%

PROINFRA 18%

FONDESHU 13%

SOURCES OF THE MAIN COOPERATION FUNDS 2008

56% FAT

Social development 5%

Community development 7%

Infrastructure and integration 24%

Culture 2%

Sustainable development 5% 17% Governance

* Highly Indebted Poor Countries.

UTILIZATION OF THE MAIN COOPERATION FUNDS 2008

6% Other

Competitiveness 27%

5% Microfinance 2% HIPC*

21

CAF develops an environmental agenda as a contribution to the conservation and sustainable use of ecosystems and natural resources.

22

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.

FINANCING SOURCES AS OF DECEMBER 31, 2008

55.0% Bonds Term deposits 29.3%

Commercial paper 7.0%

Advances and short term loans 1.5%Loans and other obligations 7.2%

23

fUnding

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, Ja-pan, and various Latin American markets.

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 Eu-rope (USD 1 billion) and promissory notes in Spain (€500 million).

crediT raTings 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.

24

2008 debT issUes in The inTernaTional marKeTs amount in original currency of issuance equivalent indate 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

2004 2005 2006 2007 2008 2004 2005 2006 2007 2008

ASSETS

BALANCE SHEET AS OF DECEMBER 31, EACH YEAR (in thousands of USD)

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

LIABILITIES AND NET WORTH

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

1,727

7,104

1,788

7,347

1,931

8,097

9,548

2,458

2,793

6,793

3,237

6,303

3,693

6,747

4,127

8,463

4,554

9,7193,281

10,184

Liquidity Loan portfolio Others assets Liabilities Net worth

Balance sheet aS oF DECEMBER 31, EaCh yEaR (in millions of uSD)

27

2004 2005 2006 2007 2008 2004 2005 2006 2007 2008

208

283321

401

311

NET INCOME PROFITABILITY FOR THE YEARS ENDED DECEMBER 31

700

600

500

400

300

200

100

0

PROFITABILITY NET INCOME (in millions of USD)

14

12

10

8

6

4

2

0

ROA 6 month LIBOR ROE

8.2%

2.3%

1.8%

9.6%

3.7%

3.0%

9.4%10.5%

7.2%

3.1%

5.3%

3.6%

5.3%

3.3%2.4%

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

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’ assembly1

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 mem-

bers, 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 Directors2

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 committee3

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.

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 strate-

gic objectives. the executive president is appointed for a five year period, and may be re-elected.

1 the XXXiX ordinary Shareholders’

meeting was held on march 25th,

2008, and the Xi extraordinary

Shareholders’ meeting.

2 During 2008, three Board of Direc-

tors meetings were held: march

25th, July 10th, and December 2nd.

3 the Xv audit committee was held

on march 29th.

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

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

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

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

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

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.