Colombia Issues $1bn In 2027 TES

Colombia has sold $1bn worth of global COP-denominated 2027 TES bonds to finance a tender for up to $950m in nine classes of fixed and floating rate bonds. The BB+ rated issue priced at par to yield 9.850%, which investors say comes at an attractive pickup to the interpolated curve. The 2015 global TES are trading at around 9.09%, implying that Colombia is paying 76bp for the extra 12 years. The differential between the two global maturities is wider than what is seen on the local curve, where the spread between the local TES 2009 and local TES 2020 is around 35bp. Orders for the bonds totaled $5.14bn. On Tuesday, the sovereign began accepting tenders for four classes of fixed rate notes with maturities ranging from 2008 to 2013 with coupons from 8.625% to 11.750%; and five classes of floating rate bonds due between 2009 and 2016 and coupons ranging from 8.700% to 10.750%. Citi and Deutsche Bank are leading the buyback and managed the sale of the 2027s.