Bancolombia set the price of its public offering of subordinated bonds abroad for an amount of US$800 million maturing on December 24, 2034.
The bonds also have a planzo of 10 years and six months after its date of issueand have an early redemption option that can be exercised after five years from the date of issuance and a coupon of 8.625% payable semiannually on December 24 and June 24 of each year, beginning on the 24th. December of this year.
Around 115 funds participated in this operation, and The demand for the securities was 2.3 times the amount offered.
The bank indicated that Expects compliance with the issue to be on June 24, 2024subject to compliance with the usual closing conditions in the market.
“With these operations in the capital market, we recompose our capital and debt profile“, which will be reflected in greater financial efficiency that strengthens us to continue delivering solid financial results for the benefit of all our relationship groups,” said Julián Mora, Corporate Vice President of Bancolombia.
But what will these resources be used for? Bancolombia indicated that a part of them will be to carry out the debt management operation announced to the market on June 3, 2024 for the bank’s 6.909% Subordinated Bonds maturing in 2027.
“The remaining cash resources from the bond offering will be used for the development of its corporate purpose.“explained the bank.
It should be noted that subordinated bonds are being offered in the United States in accordance with a current registration statement.
JP Morgan, Bank of America and Citigroup acted as bid book managers and placement agents.with JP Morgan as global coordinator of the offer, and Valores Banistmo as placement agent.
