Colombia Executes Jumbo TES Exchange

Colombia has completed an exchange of COP6.4trn ($3.46bn) in 5 series of domestic bonds for COP6.38trn in 3 series of longer-dated bonds. “This was the largest peso debt swap in Colombia’s history,” says Juan Manuel Quintero subdirector of internal financing at Colombia’s Ministry of Finance. The sovereign has issued COP2.15trn in 8.0% TES bonds due 2015 at a 6.0% yield, COP2.18trn in 11.25% 2018 notes at a 6.80% yield and a new COP2.04bn 7.50% 2026 bond to yield 7.56%. It turn the government has accepted COP6.4trn in orders from holders of 5 series of bonds due 2012-2014, of which there was COP39trn ($21.5bn) outstanding. Demand reached COP8.7trn.