Banco de Bogota Eyes Local Issue

Colombian financial institution Banco de Bogota is planning to issue COP200bn this month through an auction. The deal is part of a total of up to COP1.5trn the company plans to issue over a 5-year period to raise working capital, says German Salazar, head of international affairs and treasury. Salazar tells LatinFinance that the COP200bn issue is in subordinated bonds rated AA+. They will have terms of 7 and 10 years and be pegged to DTF, IPC or UVR, he adds. The remainder of the COP1.5trn will be issued as ordinary bonds starting later this year or early in 2011, depending on demand, Salazar says. Banco de Bogota itself will manage the sale. Banco de Bogota, Colombia’s second largest bank in terms of assets, is part of Grupo Aval.