CorpBanca Eyes COP Bonds

CorpBanca is considering the issue of some COP250bn ($141m) in Colombia’s local bond market in the first half of February, according to people familiar with the transaction. The bank is heard able to choose among 5, 7, 10, and 15-year maturities for the IPC-linked debt, with the sale able to be upsized to as much as COP350bn. CorpBanca is expected to manage the sale, rated AA+ on a national scale. This would be its first issuance in the Colombian market, following its entrance into Colombia’s retail banking sector through the acquisitions of Santander Colombia and Helm Bank in the past 14 months. Santander Colombia and Helm had each previously borrowed in the domestic bond market. CorpBanca has been raising money at various levels to help fund its acqusitions. CorpBanca sold $800m in 2018 bonds earlier this month in its first-ever international bond sale, clinching a 3.240% yield. It is also undergoing an equity follow-on concluding next month that is expected to raise more than $600m. Corp Group Banking, the holdco for CorpBanca, is currently preparing what is expected to be a $500m sale of 10-year bonds in the international market. Deutsche Bank and Goldman Sachs are managing the transaction, which could come as soon as this week.