Bancolombia Sub Debt Reported at 6%

Bancolombia’s 10-year Tier 2 bond, expected to price this week, has been rated BB+ by Fitch, and is seen yielding 5.90%-6.10%, according to research from Alianza Valores. The Colombian brokerage expects a $634m (COP1.2trn) deal. Bankers on the deal say no official guidance or size has been indicated. Bancolombia’s board approved COP1.2trn in issuance. Bank of America Merrill Lynch and JPMorgan are managing the sale. Fitch rates Bancolombia BBB minus, and places the new subordinated bonds a notch lower.