Bogota Transport Brings Debt Part II

A trust managing the finances of Bogota public transportation system Transmilenio has sold COP323bn ($162m) in domestic bonds denominated in the UVR unit. The issuer placed COP63bn-equivalent in 2013 bonds at a fixed interest rate of 4.93%, COP87bn-equivalent in 2016s at 5.95%, and COP173bn-equivalent in 2017s at 6.18%. Demand reached COP411bn, according to a regulatory filing. The debt is securitized by future payments to the system budgeted by the federal and city governments. Proceeds from the sale will partly finance construction of 14km of roads connecting the existing bus system with Bogota’s main airport and a 7.7km extension of the network in downtown Bogota. Citivalores and Alianza Valores managed the sale, rated AAA on a national scale. The issue is the second of 4 planned ABS deals through February 2010, expected to total COP1.4trn. In June, Transmilenio sold COP263bn in UVR and peso-denominated bonds.