EPM Local Bonds Oversubscribed

Empresas Publicas de Medellin (EPM) has sold COP350bn ($150m) in bonds in Colombia’s domestic market, on the back of COP710bn in demand. The government-owned utility priced COP152bn in 5-year notes at the IPC rate plus 4.94% and COP198bn in 15-year notes at the IPC rate plus 6.24%. The issuer opted not to sell 3-year fixed-rate notes, as demand was skewed to the longer dated tranches, according to a banker managing the sale. EPM plans to use proceeds to finance its investment program. The sale represents the third and last tranche of a COP1trn shelf, following placements of COP367bn in November and COP250bn in January, but the issuer has indicated plans to sell more this year. Citivalores and Alianza Valores managed the sale. The next large sale on tap in Colombia’s domestic market should come from Cementos Argos, expected to sell up to COP640bn, though a date has not been set. EPM is also planning to go overseas with a $500m 10-year bond issue and select banks by the end of this month.