By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Nov. 8 – The Republic of Colombia priced $2.5 billion in fixed-rate global bonds in two tranches (Baa2/BB+/BB+), according to FWPs filed with the Securities and Exchange Commission.
The $1.25 billion of 8% global bonds due Nov. 14, 2035 priced at 97.748, not including accrued interest, to yield 8.3%, or at a spread of Treasuries plus 373.1 basis points.
Additionally, Colombia priced $1.25 billion of 8¾% global bonds due Nov. 14, 2053 at 97.927, not including accrued interest, to yield 8.95% or at a spread of 421.7 bps above Treasuries.
Talk was in the 8¾% area on the 2035 note and 9 3/8% area on the 2053 notes.
The notes will have an optional make-whole call at Treasuries plus 50 bps until some months prior to maturity, and then they will be callable at par. The par call date is Aug. 14, 2035, three months prior to maturity, for the 2035 bonds and May 14, 2053, six months prior to maturity, for the 2053 bonds.
BBVA Securities Inc., Citigroup Global Markets Inc. and HSBC Securities (USA) Inc. are the joint bookrunners.
The republic plans to use proceeds for general budgetary purposes and intends to allocate an amount equal to the net proceeds to eligible social expenditures under its green, social and sustainable bond framework.
| Issuer: | Republic of Colombia
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| Amount: | $2.5 billion
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| Issue: | Bonds
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| Bookrunners: | BBVA Securities Inc., Citigroup Global Markets Inc. and HSBC Securities (USA) Inc.
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| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | General Directorate of Public Credit and National Treasury of the Ministry of Finance and Public Credit of the Republic of Colombia (Columbian law) and Arnold & Porter Kaye Scholer LLP (U.S. law)
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| Counsel to bookrunners: | Sullivan & Cromwell LLP (U.S. law) and Brigard & Urrutia Abogados SAS (Colombian law)
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| Trade date: | Nov. 7
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| Settlement date: | Nov. 14
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| Ratings: | Moody’s: Baa2
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| S&P: BB+
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| Fitch: BB+
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| Distribution: | SEC registered
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| 2035 bonds
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| Amount: | $1.25 billion
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| Maturity: | Nov. 14, 2035
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| Coupon: | 8%
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| Price: | 97.748, not including accrued interest
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| Yield: | 8.3%
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| Spread: | Treasuries plus 373.1 bps
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| Call features: | At Treasuries plus 50 bps before Aug. 14, 2035; after at par
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| Price talk: | 8¾% area
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| Cusip: | 195325EL5
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| 2053 bonds
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| Amount: | $1.25 billion
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| Maturity: | Nov. 14, 2053
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| Coupon: | 8¾%
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| Price: | 97.927, not including accrued interest
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| Yield: | 8.95%
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| Spread: | Treasuries plus 421.7 bps
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| Call features: | At Treasuries plus 50 bps before May 14, 2053; after at par
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| Price talk: | 9 3/8% area
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| Cusip: | 195325EM3
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