Colombia’s Bancoldex sells COP 400 billion of social bonds

By Caroline Salls

Pittsburgh, May 25 – Banco de Comercio Exterior de Colombia SA (Bancoldex) announced Thursday that it sold COP 400 billion of social bonds.

The offering was announced at COP 300 billion with the possibility of a COP 100 billion increase, an option that was exercised after the sale saw COP 1.2 trillion of demand.

According to a news release, this 4.17 times oversubscription was the biggest for a bond issue on the Colombian Stock Exchange for 2018 so far.

Bancoldex said a COP 400 billion line of credit was created and was to be available on May 28 to finance rural businesses and micro and small enterprises of women and victims of armed conflict.

The offer was carried out through the Colombian Stock Exchange as a Dutch auction.

A total of 402 investors participated, with bonds awarded to 184 of them.

The bonds were sold in three tranches, a three-year fixed-fixed rate bond with a coupon of 6.05%, a three-year floating-rate bond with a coupon of IBR plus 115 basis points and a five-year floating-rate bond with a coupon of IPC, the Colombian consumer price index, plus 285 bps.

The bank said the bonds will be issued in accordance with a sustainable development goal geared toward gender equality, employment and economic growth, industry, innovation and infrastructure and reduction of inequalities.

The titles were structured with technical cooperation from the Inter-American Development Bank, the release said.

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