Colombia Swap Hits COP3.71trn

Colombia’s government has swapped a total COP3.71trn ($1.5bn) in six series of local TES bonds maturing between 2009 and 2011 with three series of new bonds maturing 2012, 2014 and 2018, it says. Investors exchanged COP2.71trn in short-term debt through public offerings, and the government also swapping COP1trn worth of those same bonds held by state-owned companies. “Current fiscal strains are probably behind the government’s effort to move to a less front-loaded profile of debt maturities,” Citi says in a report, noting that this type of swap should become more frequent in the future and push the long end of the TES curve steeper.