By Marisa Wong
Madison, Wis., Sept. 25 – Bancolombia SA announced it priced its COP 750 billion offering of subordinated notes with an up to COP 250 billion upsize option on Wednesday.
Demand for the issuance totaled COP 1.26 trillion, which is about 1.68 times the offered amount. The total allocated amount was COP 988.25 billion, according to a press release.
The inflation-linked bonds were offered in three series due in 10, 15 and 20 years.
The bank sold COP 373.75 billion of 10-year notes at a cut-off rate of IPC plus 429 basis points. Demand for these notes totaled COP 556.35 billion.
The bank also sold COP 360 billion of 15-year notes at a cut-off rate of IPC plus 465 bps. Demand for these notes totaled COP 371.5 billion.
In addition, the bank sold COP 254.5 billion of 20-year notes at a cut-off rate of IPC plus 479 bps. Demand for these notes totaled COP 328.5 billion.
Banca de Inversion Bancolombia SA Corporacion Financiera acted as lead arranger, and Bancolombia and Valores Bancolombia SA Comisionista de Bolsa acted as joint bookrunners for the offering.
Proceeds will be used to strengthen the bank’s capital structure, for regulatory compliance and for general corporate purposes.
The Medellin, Colombia-based bank previously said it plans to issue a total of up to COP 3 trillion of subordinated notes under a program approved by its board of directors in May 2012.
| Issuer: | Bancolombia SA
|
| Issue: | Subordinated notes
|
| Amount: | COP 988,252,000,000
|
| Pricing date: | Sept. 24
|
|
|
| 10-year bonds
|
| Amount: | COP 373,752,000,000
|
| Maturity: | 10 years
|
| Cut-off rate: | IPC plus 429 bps
|
|
|
| 15-year bonds
|
| Amount: | COP 360 billion
|
| Maturity: | 15 years
|
| Cut-off rate: | IPC plus 465 bps
|
|
|
| 20-year bonds
|
| Amount: | COP 254.5 billion
|
| Maturity: | 20 years
|
| Cut-off rate: | IPC plus 479 bps
|
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