Colombia Energy Player Sticks with IPO

While the equity new issue market has been firmly shut for IPOs, TGI, the Colombian gas transportation company, is still working hard to be ready to issue once they reopen, according to its CFO. “We still plan on capitalizing TGI,” says Jorge Pinzon Barragan, CFO, tells LatinFinance. “We may put an RFP out by the end of the first half,” he adds, noting no banks have been selected even on a preliminary basis for advisory and underwriting. One of the big challenges for TGI, which is controlled by EEB, has been moving its accounting over to IFRS. In September 2007 TGI issued $750m in 10-year bonds that priced at par to yield 9.50%. Its parent EEB followed a month later with a $610m 2014 NC4 note 8.75%. Both deals came via ABN AMRO, now RBS. Pinzon says TGI’s debt to equity ratio stands at 1.5x.