Sura Launches FO

Colombia’s Grupo de Inversiones Suramericana has launched a COP3.9trn ($2.09bn) domestic equity follow-on, seeking funds to pay for its acquisition of ING’s LatAm pension fund and insurance assets. The conglomerate is selling 120m preferred non-voting shares at COP32,500 each, during an order period closing November 22. The price represents a 3.1% discount from the COP33,545 moving average price during the month prior to Sura’s board’s approval of the sale, and a 0.85% discount to Monday’s COP32,780 close. The deal is local only, though some international participation is expected. This marks a change from the issuer’s original plan to combine domestic and 144a issue. As a result, the borrower has reduced the larger line-up of banks mandated on the original deal, leaving just Bancolombia and Santander as leads. The list had also included acquisition bridge loan lenders BBVA, Deutsche Bank, HSBC, JPMorgan, and UBS. Meanwhile in Colombia’s busy ECM, Empresa de Energia de Bogota is set to allocate its COP700bn ($360m) follow-on as soon as this week, and Davivienda is raising COP480bn-COP800bn ($253m-$422m) in a follow-on closing next week.