Argos Lays Foundation for Convert Sale

Colombia’s Grupo Argos is expected to issue COP500bn ($274m) in convertible bonds in a process starting today and expected to price Wednesday, say sources familiar with the Colombian conglomerate’s plans. The sale may be upsized to COP750bn. The 3-year bond comes with a 5.0% coupon and is convertible into preferred shares at the holder’s discretion during the life of the bond, and mandatorily at maturity. Bancolombia is leading the deal, rated AA+ on a national scale, with Bolsa y Renta, Corredores Asociados, Correval and Serfinco as bookrunners. In a research report, Bolsa y Renta highlights the papers as a medium-term play for investors that is ideally held to maturity.