Bancolombia Gets Half in Bond Exchange

Investors holding 50.12%, or about $200m of Bancolombia’s 2017 bonds accepted an offer to exchange them for 2022s, the bank says. In an offer closed last week, Bancolombia offered new 5.125% 2022 subordinated bonds for the 6.875% 2017 subordinated bonds, at a rate of a rate of $1,135 per $1,000 principal amount. The bonds are the same as those sold for cash in a $1.2bn September offering. The Baa3/BBB minus lender sold the 2022 Tier 2 bonds in September at a 5.20% yield through the same banks. Bank of America Merrill Lynch, Citi and Morgan Stanley managed both the sale and tender.