Colombian Utility Readies Bonds

Colombian state-owned utility Empresas Publicas de Medellin plans to sell as much as COP250bn ($111m) in 3 and 10-year bonds today. EPM is offering 3-year bonds paying interest linked to the DTF inflation rate, 10-year bonds linked to the IPC inflation rate and 10-year bonds paying a fixed coupon. Pricing will be determined by auction. EPM plans to use proceeds to help fund the utility’s COP1.8bn in 2009 investment needs. The offer is the second from a COP1bn program, and follows a COP367bn sale in November. Citi is managing the transaction.