Investors Jump on Bancolombia Local Bonds

Bancolombia has sold COP600bn ($324.3m) in bonds in a transaction upsized from COP400bn after generating demand of COP1.64trn, according to the issuer. The bonds, sold in seven tranches, were rated AAA on a national scale. Two COP64bn 10-year tranches priced at 12.59% and the IPC inflation rate plus 6.39%, respectively, and COP143bn and 66bn 5-year tranches priced at IPC plus 6.15% and the DTF inflation rate plus 2.69%, respectively. A 3-year COP110bn piece priced at DTF plus 2.55%, and the remainder of the issue consisted of short-term notes. The order book was made up of mostly local institutional buyers, including insurance and financial services firms and pension funds. The sale is part of a COP1.5trn program, and raised funds for general corporate purposes. Bancolombia’s investment banking arm managed the transaction.