Investors Flock to Popular Bonds

Colombia’s Banco Popular issued COP300bn ($152m) in local bonds. It originally intended to issue COP200bn and said it would increase the amount to COP300bn depending on demand, which soared to COP577bn. The AAA rated notes were issued in 6 tranches. An 18-month piece that sold COP43.3bn pays 0.95% over DTF, an 24-month tranche that sold COP38.1bn pays 1.10% over DTF, a 24-month piece that sold COP65.4bn pays 2.90% over IPC, a 36-month piece that sold COP47.5bn pays 3.23% over IPC, an 18-month tranche that sold COP31.0bn pays 1.20% over IBR and an 18-month tranche that sold COP74.5bn pays a fixed rate of 4.98%. Proceeds will be used for working capital. Popular handled the sale itself.