Avianca Sets Local Bond Sale

Avianca is planning to sell August 25 up to COP500bn ($246m) in local bonds, according to a Bogota-based broker managing the sale. The Colombian airline is offering up to COP100bn in 2014 bonds, up to COP200bn in 2016s and up to COP300bn in 2019s, in a sale that had been expected as soon as this week. Each of the tranches will pay a spread to the IPC inflation index. The proceeds of the bond sale fund the purchase of 4 Airbuses and repay bank debt. InterBolsa is managing the sale, rated AA+ on a national scale.