Colombian Prices Hotel-Backed Bond

Hoteles Estelar has issued COP80bn ($44m) in 2027 asset-backed bonds in Colombia’s domestic market. The bonds pay IPC+4.25%, and are guaranteed by the La Fontana hotel in Bogota and Hotel Intercontinental in Cali. The hotel operator plans to use half of the proceeds to repay debt, with the other half earmarked for a landmark hotel project in Cartagena. Corficolombiana and Casa de Bolsa led the transaction, rated AAA on a local scale. Estelar debuts in the bond market with the deal, and will look to issue shares in a few years, say people familiar with its plans.