Suramericana Flexes Up

Colombia’s Suramericana de Inversiones has flexed up the pricing on a $150m 3-year loan to 112.5bp from 75.0bp, according to bankers away from the transaction. The reason for the change, according to lead bank Citi, is that Colombian regulators imposed capital controls requiring banks to keep larger amounts of deployed funds within the country for four months. The borrowing entity was also changed from a Colombia-based firm to a British Virgin Islands-based vehicle. The loan was already struggling well ahead of the government’s announcement because of aggressive pricing. Market participants say the new pricing reflects a more appropriate level for the deal, and that it should go well from here.