Colombian to Tap Local Market

Codensa plans to issue COP275bn ($142m) in Colombia’s domestic bond market today, with the ability to upsize the sale to COP375bn, according to people familiar with the trade. The electric distributor is expected to offer a 5-year IPC-linked tranche with an anticipated maximum interest rate of IPC+4.40% and a 12-year IPC-linked tranche with a maximum interest rate of IPC+5.40%. Codensa is raising proceeds to pre-finance upcoming bond maturities. Corredores Asociados, Bancolombia, Correval and BBVA are managing the deal, rated AAA on a local scale.