Santander Prepares COP Sub Bonds

The Colombian unit of Santander is preparing to offer up to COP290bn ($116m) in subordinated bonds, with a sale expected in the next 2 weeks. The bank is set to sell 7-10 year bonds at fixed rate or basis DTF or IPC, to be decided during the sale process. The bank is prepared to pay a maximum 11% for fixed-rate, and DTF plus 6.5% or IPC plus 3.0% for floaters. Santander’s own capital markets unit is managing the sale, rated AA+ on a national scale. The issue follows Bancolombia’s sale of COP400bn in floating-rate subordinated notes March 4.