Bancolombia Launches Exchange

Bancolombia has launched an exchange offer targeting the $400m outstanding in its 6.875% 2017 subordinated bonds, it says. It aims to replace them with new 5.125% 2022 subordinated bonds, the same as the notes it sold for cash last week in a $1.2bn offering. In the offer expiring October 5, the lender is offering holders the new bonds at a rate of $1,135 per $1,000 principal amount to those tendering before a September 21 early deadline, and $1,105 if tendered by the October 5 close. Bank of America Merrill Lynch, Citigroup and Morgan Stanley are managing. The Baa3/BBB minus lender sold the 2022 Tier 2 bonds last week at a 5.20% yield through the same banks.