Corporación Financiera de Desarrollo S.A. (COFIDE) Announces Commencement of Cash Tender Offer for up to U.S.$600,000,000 Aggregate Maximum Purchase Price of the Outstanding 4.750% Notes due 2022, subject to the 2022 Tender Cap, and 4.750% Notes due 2025

LIMA, Peru, Sept. 2, 2020 /PRNewswire/ -- Corporación Financiera de Desarrollo S.A. ("COFIDE"), HSBC Securities (USA) Inc. (the "Purchaser"), and HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC (together, the "Dealer Managers") today announced the commencement of an offer by the Purchaser to purchase for cash from each registered holder (each, a "Holder" and, collectively, the "Holders"), an aggregate amount of the outstanding (i) subject to the 2022 Tender Cap (as defined below), 4.750% Notes due 2022 (the "2022 Notes") issued by COFIDE (the "2022 Offer") and (ii) 4.750% Notes due 2025 (the "2025 Notes" and, together with the 2022 Notes, the "Notes") issued by COFIDE (the "2025 Offer" and, together with the 2022 Offer, the "Offers") that will not result in an aggregate purchase price to be paid by the Purchaser for the tendered Notes so purchased to exceed U.S.$600,000,000 (the "Aggregate Maximum Purchase Price").

The Offers are being made by the Purchaser pursuant to the offer to purchase dated September 2, 2020 (the "Offer to Purchase"). The purpose of the Offers is to acquire for cash up to the Aggregate Maximum Purchase Price (subject to increase by the Purchaser) of the outstanding Notes and up to the 2022 Tender Cap for the 2022 Notes (subject to increase by the Purchaser).

The table below summarizes certain payment terms for each of the Offers:

Subject to the Aggregate Maximum Purchase Price and/or the 2022 Tender Cap for the 2022 Notes, the amount of a series of Notes that is purchased in the Offers on any Settlement Date (as defined below) will be based on the order of priority (the "Acceptance Priority Level") for such series of Notes set forth above, subject to the proration arrangements applicable to the Offers. No more than U.S.$400,000,000 aggregate principal amount of the 2022 Notes (subject to increase by the Purchaser, the "2022 Tender Cap") will be purchased in the Offers.

The Offers will expire at 11:59 p.m. (New York City time) on September 30, 2020, unless extended or earlier terminated by the Purchaser (such date and time, including as extended or earlier terminated, the "Expiration Date"). Holders of Notes who validly tender (and do not validly withdraw) their Notes at or prior to 5:00 p.m. (New York City time) on September 16, 2020, unless extended or earlier terminated (such date and time, including as extended or earlier terminated, the "Early Tender Time"), will be eligible to receive the 2022 Total Consideration or the 2025 Total Consideration (as defined below), as applicable, which includes the 2022 Early Tender Payment (as defined below), and the 2025 Early Tender Payment (as defined below), respectively, plus Accrued Interest (as defined below). Holders of Notes who validly tender Notes after the Early Tender Time but at or prior to the Expiration Date in the manner described in the Offer to Purchase will not be eligible to receive the applicable Early Tender Payment and will therefore only be eligible to receive the 2022 Purchase Price (as defined below) or the 2025 Purchase Price (as defined below), as applicable, plus Accrued Interest. Notes that have been validly tendered pursuant to the Offers may be validly withdrawn prior to 5:00 p.m. (New York City time) on September 16, 2020, which may be extended by the Purchaser (such date and time, including as extended, the "Withdrawal Deadline"), but not thereafter, except as described in the Offer to Purchase or as required by applicable law.

The total consideration for each U.S.$1,000 principal amount of the 2022 Notes validly tendered and not validly withdrawn is U.S.$1,056.60 (the "2022 Total Consideration"), which includes an early tender payment of U.S.$30.00 per U.S.$1,000 principal amount of the 2022 Notes (the "2022 Early Tender Payment") and the 2022 Purchase Price (as defined below). The 2022 Early Tender Payment is payable only to Holders who tender and validly deliver their 2022 Notes on or prior to the Early Tender Time. Subject to the Aggregate Maximum Purchase Price, the 2022 Tender Cap and proration, Holders validly tendering and not withdrawing their 2022 Notes at or before the Early Tender Time will be eligible to receive the 2022 Total Consideration (including the 2022 Early Tender Payment) on a date promptly following the Early Tender Time (the "Early Settlement Date") (which date is expected to be three business days after the Early Tender Time, but which the Purchaser may change without notice). Subject to the Aggregate Maximum Purchase Price, the 2022 Tender Cap and proration, Holders validly tendering and not withdrawing their 2022 Notes after the Early Tender Time and prior to or at the Expiration Date will be entitled to receive U.S.$1,026.60 per U.S.$1,000 principal amount of the 2022 Notes (the "2022 Purchase Price"), which is an amount equal to the 2022 Total Consideration less the 2022 Early Tender Payment, on a date promptly following the Expiration Date (the "Final Settlement Date" and, together with the Early Settlement Date, each a "Settlement Date") (which date is expected to be two business days after the Expiration Date, but which the Purchaser may change without notice).

The total consideration for each U.S.$1,000 principal amount of the 2025 Notes validly tendered and not validly withdrawn is U.S.$1,144.50 (the "2025 Total Consideration"), which includes an early tender payment of U.S.$30.00 per U.S.$1,000 principal amount of the 2025 Notes (the "2025 Early Tender Payment") and the 2025 Purchase Price (as defined below). The 2025 Early Tender Payment is payable only to Holders who tender and validly deliver their 2025 Notes on or prior to the Early Tender Time. Subject to the Aggregate Maximum Purchase Price and proration, Holders validly tendering and not withdrawing their 2025 Notes at or before the Early Tender Time will be eligible to receive the 2025 Total Consideration (including the 2025 Early Tender Payment) on the Early Settlement Date. Subject to the Aggregate Maximum Purchase Price and proration, Holders validly tendering and not withdrawing their 2025 Notes after the Early Tender Time and prior to or at the Expiration Date will be entitled to receive U.S.$1,114.50 per U.S.$1,000 principal amount of the 2025 Notes (the "2025 Purchase Price"), which is an amount equal to the 2025 Total Consideration less the 2025 Early Tender Payment, on the Final Settlement Date.

In addition, Holders whose Notes are purchased in the Offers will receive accrued and unpaid interest (the "Accrued Interest") in respect of their purchased Notes from the last interest payment date to, but not including, (i) in the case of any Notes accepted for purchase at or before the Early Tender Time, the Early Settlement Date and (ii) in the case of any remaining Notes accepted for purchase after the Early Tender Time, the Final Settlement Date, as the case may be.

Subject to the Aggregate Maximum Principal Amount, the 2025 Tender Cap and proration, the Notes accepted for payment on any Settlement Date will be accepted in accordance with their Acceptance Priority Levels set forth above (with 1 being the highest Acceptance Priority Level and 2 being the lower Acceptance Priority Level). Subject to the 2022 Tender Cap, all Notes tendered before the Early Tender Time will be accepted for purchase in priority to other Notes tendered after the Early Tender Time, even if such Notes tendered after the Early Tender Time have a higher Acceptance Priority Level than Notes tendered prior to the Early Tender Time.

Acceptance of tenders of the Notes of either or both series may be subject to proration if the aggregate Total Consideration or Purchase Price, as applicable, excluding Accrued Interest, of Notes validly tendered and not validly withdrawn would cause the Aggregate Maximum Purchase Price to be exceeded. Acceptance of tenders of the 2022 Notes may also be subject to proration if the aggregate principal amount of 2022 Notes validly tendered and not validly withdrawn would cause the 2022 Tender Cap to be exceeded. Furthermore, if the Offers are fully subscribed as of the Early Tender Time, Holders who validly tender Notes after the Early Tender Time will not have any of their Notes accepted for purchase.

The Offers are conditioned upon, among other things, the pricing on terms satisfactory to COFIDE of a concurrent offering of senior notes by COFIDE (the "New Notes") to be sold in an offering (the "New Notes Offering") exempt from the registration requirements of the U.S. Securities Act of 1933, as amended (the "Securities Act"). No assurance can be given that the New Notes Offering will be priced or completed on the terms currently envisioned or at all. The New Notes Offering is not conditioned upon the completion of the Offers. The Offers are not conditioned on any minimum participation by the Holders. Additional conditions to the Offers are described under "Conditions to the Offers" in the Offer to Purchase. Tendering Holders who wish to tender their Notes for cash and also subscribe for the New Notes should obtain a unique identifier code ("Unique Identifier Code") by contacting the Dealer Managers.  The Purchaser and COFIDE will review tender instructions received on or prior to the Early Tender Time and may give priority to those investors tendering with Unique Identifier Codes in connection with the allocation of New Notes. However, no assurances can be given that any Holder that tenders Notes will be given an allocation of New Notes at the levels it may subscribe for, or at all. The New Notes sold in the New Notes Offering will be offered only to qualified institutional buyers in the United States in reliance on Rule 144A under the Securities Act and to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act. This press release and the Offer to Purchase do not constitute an offer to sell or a solicitation of an offer to buy the New Notes.

COFIDE has consented to the Purchaser making the Offers described in the Offer to Purchase. It is intended that the Notes purchased by the Purchaser in the Offers will be exchanged by the Purchaser with COFIDE for New Notes issued in the New Notes Offering by COFIDE to the Dealer Managers. COFIDE intends to fund the Offers with the net proceeds from the New Notes Offering of the New Notes and cash on hand.

The Information and Tender Agent for the Offers is D.F. King & Co., Inc. To contact the Information and Tender Agent, banks and brokers may call (212) 269-5550, and others may call U.S. toll-free: (866) 207-2324. Additional contact information is set forth below.

Any questions or requests for assistance in relation to the Offers and the Offer to Purchase may be directed to the Dealer Managers at their respective telephone numbers set forth below or, if by any Holder, to such Holder's broker, dealer, commercial bank, trust company or other nominee for assistance concerning the Offers. Requests for additional copies of the Offer to Purchase may be directed to the Information and Tender Agent at the address and telephone numbers set forth above.

Documents relating to the Offers, including the Offer to Purchase, are also available at www.dfking.com/cofide.  

The Dealer Managers for the Offers are:

This notice does not constitute or form part of any offer or invitation to purchase, or any solicitation of any offer to sell, the Notes or any other securities in the United States or any other country, nor shall it or any part of it, or the fact of its release, form the basis of, or be relied on or in connection with, any contract therefor. The Offers are made only by and pursuant to the terms of the Offer to Purchase, and the information in this notice is qualified by reference to the Offer to Purchase. None of the Purchaser, COFIDE, the Dealer Managers or the Information and Tender Agent makes any recommendations as to whether Holders should tender their Notes pursuant to the Offers.

This notice to the market does not represent an offer to sell securities or a solicitation to buy securities in the United States or in any other country. The New Notes Offering was not and will not be registered with the Peruvian Capital Markets Superintendence (Superintendencia del Mercado de Valores) and therefore will not be subject to a public offering in the Republic of Peru and also will not be registered under the Securities Act. Consequently, the notes issued in the New Notes Offering are prohibited from being offered or sold in the United States or to U.S. citizens without the applicable registration or exemption from registration required under the Securities Act.

This notice to the market is released for disclosure purposes only, in accordance with applicable legislation. It not does not constitute marketing material, and should not be interpreted as advertising an offer to sell or soliciting any offer to buy securities issued by COFIDE.

Forward-Looking Statements

This notice includes and references "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements may relate to, among other things, COFIDE's business strategy, goals and expectations concerning its market position, future operations, margins and profitability.

Although the Purchaser and COFIDE believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect.

The matters discussed in these forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors.

The Purchaser and COFIDE undertake no obligation to update any of its forward-looking statements.

Augusto Tamayo 160
Lima 27, Peru
Att.: Mr. Paul Bringas Arbocco
Chief Financial Officer
[email protected]

SOURCE Corporación Financiera de Desarrollo S.A.

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