Colombia Retaps 2017, 2037s for $1bn

Colombia’s was the last LatAm issuer through a tight market window yesterday, reopening its 2017 and 2037 Globals for $1bn. The sovereign priced $650m in 7.375% 2017 notes at 109.500 to yield 5.997%, or 222bp over UST, and $350m in 7.375% 2037 notes at 110 to yield 6.601%, or 229bp over UST. The pricing matched guidance – 109.5 on the 2017 and 110 on the 2037 – given earlier in the day for the Ba2/BB+ transaction. The order book reached about $1.4bn, according to a banker on the deal, but the deal was announced with “will not grow”. Demand skewed more than expected to the 10-year notes. Bankers not on the deal say the issuer sacrificed a few basis points to get the transaction done yesterday, owing to choppy markets. Proceeds will go towards financing the country’s budget deficit. Credit Suisse and Merrill Lynch were joint bookrunners.