Bancolombia Sells Tier-2 Bonds

Bancolombia has sold COP400bn ($154m) in 2019 and 2024 domestic Tier-2 bonds, according to an official at the bank. The bank priced COP65bn in 10-year fixed notes at 10.70%, COP126bn in 10-year floating-rate bonds at the IPC index plus 6.45%, and COP209bn in 15-year bonds at IPC plus 6.90%. Total demand for the 3 tranches was more than COP575bn. The bonds are the first from a COP1trn program launched this year to support the capital base, and its first Tier-2 issue in local currency. Bancolombia’s own brokerage managed the sale, rated AA+ on a national scale. Next week, fellow financial institutions Titularizadora Colombiana and Findeter plan to sell COP150bn and COP250bn, respectively, in domestic bonds. Bancolombia also announced that it has sold COP218bn ($84.5m) in mortgage loans to Titularizadora Colombiana. Titularizadora plans to offer COP150bn in 10-year fixed-rate bonds backed by a portfolio of mortgages, in a sale expected March 12.