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Colombia Issues New Bond Offering To Refinance 2021 & 2024 Tranches
Posted On January 27, 2020
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Colombia announced last week the commencement of a global “new bonds offering” of new global bonds to be denominated in U.S. dollars due in 2030, and additional global bonds to be denominated in US dollars due in 2049. BBVA Securities Inc., Goldman Sachs & Co. LLC, and Scotia Capital (USA) Inc. will serve as Joint Book-Running Managers for the new bonds offering.
The new bonds offering is being made by means of a preliminary prospectus supplement and an accompanying base prospectus that may be obtained by contacting: BBVA Securities Inc., by calling +1-800-422-8692 (U.S. toll free), Goldman Sachs & Co. LLC, by calling +1-866-471-2526 (U.S. toll free) or Scotia Capital (USA) Inc., by calling +1-800-372-3930 (U.S. toll free).
Application will be made to have the New Bonds listed on the Luxembourg Stock Exchange and admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange.
The bond offering includes $1,542,968,000 USD aggregate principal amount of global bonds due 2030 and $300,000,000 USD aggregate principal amount of additional global bonds due 2049. The aggregate principal amount of 2030 Bonds includes approximately U.S. $192,968,000 intended to fund the purchase of tender orders made by holders of Colombia’s 2021 Bonds who submitted an equivalent-sized Indication of Interest for the 2030 Bonds prior to the pricing of the new bonds offering. The closing of the new bonds offering is expected to occur on Thursday, January 30, 2020.
Terms and conditions of the debt issuance and management operation
| 2030 Global Bonds | 2049 Global Bond Reopening | |
| Issuer | Republic of Colombia | |
| Nominal value | USD 1,542,968,000 | USD 300,000,000 |
| Expiration | January 30, 2030 | May 15, 2049 |
| Coupon | 3.0% | 5.2% |
| Coupon Payment Frequency | Biannual | |
| Performance | 3,128% | 3,968% |
| Price | 98,908% | 121,025% |
| Spread over Treasures | 135 basis points | 173 basis points |
| Benchmark instruments | United States Treasury 10 years | United States Treasury 30 years |
| Benchmark Rate | 1,778% | 2,238% |
| Compliance Date | January 30, 2020 | |
| Early redemption operations | “Par Call” 3 months before expiration
“Make – Whole” to US Treasury +20 basis points. |
“Par Call” 6 months before expiration
“Make – Whole” to US Treasury +35 basis points. |
| Applicable law | New York | |
| Placement Banks | BBVA Securities Inc. Goldman Sachs & Co. LLC. Scotia Capital (USA) Inc. |
|
| Buy 2021 Global Bonds | |
| Nominal Value Valid at the Date of the operation | USD $2 billion |
| Expiration | July 12, 2021 |
| Coupon | 4,375% |
| Coupon Payment Frequency | Biannual |
| Nominal repurchased | USD 514,432 million |
| Buyback Price | 103.728% |
| Compliance Date | January 30, 2020 |
| Nominal Value after Repurchase | USD 1,485,568 million |
Investor Contact information:
D.F. King & Co., Inc.
48 Wall Street, 22nd Floor
New York, New York 10005
Toll Free: 1-877-896-3199
Email: [email protected]
Website: www.dfking.com/colombia
| BBVA Securities Inc.
Attention: Liability Management Group 1345 Avenue of the Americas, 44th Floor New York, NY 10105 Collect: +1 (212) 728-2446 Toll-Free: +1 (800) 422-8692 |
Goldman Sachs & Co. LLC Attention: Liability Management Group 200 West Street New York, NY 10282 Collect: +1 (212) 357-1452 Toll-Free: +1 (800) 828-3182 |
Scotia Capital (USA) Inc. Attention: Latin America Debt Capital Markets 250 Vesey Street New York, NY 10281 Collect: +1 (212) 225-5559 Toll-Free: +1 (800) 372-3930 |
Above photo: Colombia’s finance minister, Dr. Alberto Carrasquilla, courtesy of Colombia’s Ministro de Hacienda y Credito Público
