Bancolombia announced the fixing of prices of an issue of subordinated bonds in the international market for an amount of US$ 800 million. These bonds, the entity indicated, have a term of 10 years and 6 months, and a coupon of 8.625%, which will be paid semiannually.
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“After a successful tour in which meetings were held with nearly 80 investors, around 115 funds participated in this operation. The demand for the securities was 2.3 times the amount offered, which reflects the confidence of the investors and the appetite for the Colombian market”Bancolombia highlighted in a statement.
The resources from this issue will be used for corporate uses, as well as the repurchase of a portion of the subordinated bonds maturing in 2027 announced to the market at the beginning of this month, and that are part of a strategy to recompose the organization’s capital structure.
(See: Unexpected turn in banking assets is boosting the bond market).
Bancolombia.
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Completion of the issue is expected to be on June 24, 2024, subject to compliance with the usual closing conditions in the market.
“With these operations in the capital market, we rebuild our capital and debt profile, which will be reflected in greater financial efficiency that strengthens us to continue delivering solid financial results for the benefit of all our relationship groups. “The appetite for this transaction reflects the trust that investors have placed in us for the long term and ratifies Bancolombia’s access to international markets,” says Julián Mora, Corporate Vice President of Bancolombia.
(Also: Colombia returns to the bond market for the first time this year).
JP Morgan, Bank of America and Citigroup acted as offer book administrators and placement agents, with JP Morgan as global coordinator of the offer, and Valores Banistmo as placement agent.
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