Colombia Reported Growing Bond Issuance

Colombia is raising borrowing on local market and international markets by approximately $2bn to replace revenue from postponed privatizations, according to wires, which cite finance minister Oscar Ivan Zuluaga. It will borrow $500m in international bonds, $500m more from multilaterals and issue COP2trn ($1.06bn) to cover COP4.5trn that had been expected from privatizations, including Isagen and regional utilities, say the reports. Separately, the IDB has approved a $200m loan for Colombia to help finance a program to improve controls over the finances of territorial entities. The loan has a repayment period of 20 years and 5 years of grace, with a rate based on Libor.