Helm Sets Local Bond Issue

Colombia’s Helm Bank has set an August 8 date for the sale of a COP200bn-COP300bn ($113m-$170m) domestic bond, according to local DCM bankers. The bank will choose from 6 available tranches based on the demand it sees. A 3-year note paying a spread to the interbank rate IBR, 5 and 7-year pieces paying a spread to the IPC, as well as fixed-rate tranches of 3, 5 and 7 years are all available. Generally, 2-3 tranches are the norm in Colombian local deals of this size. Helm is managing the sale itself, and is rated AA+ on a national scale. Issuance has been picking up recently in Colombia, if only for financial issuers. “A lot of liquidity has entered the market in the last 2-3 months,” says an analyst at a local shop, coming mostly from large coupon payments that the government has made on its local debt. Other financial issuers are looking to follow this month, including Banco Falabella (COP150bn) and Banco Finandina (COP60bn), Banco de Bogota and Banco Davivienda. Bancolombia sold COP800bn ($450m) in 5 series of new domestic bonds last week.