UPDATE 3-Colombia offers rich terms on new bond

lunes 21 de septiembre de 2015 16:20 GYT
 

(Updates with launch details, book size)

By Davide Scigliuzzo

NEW YORK, Sept 21 (IFR) - Colombia offered a generous premium Monday to lure investors into a US$1.5bn long 10-year bond deal amid worries about the price of oil, its main export.

The South American country, rated Baa2/BBB/BBB, launched the transaction at a final spread of 245bp over US Treasuries, a concession of around 30bp over its existing curve.

"It seems like a fairly healthy concession," said a banker not involved in the trade, who had Colombia's existing 4% 2024s quoted at a G-spread of 215bp at the close on Friday.

"People feel there is a fair amount of risk around oil."

Demand for the deal reached US$3.5bn, according to one investor who participated, allowing the sovereign to launch at the tight end of guidance of 250bp (plus or minus 5bp) and inside initial price thoughts of 262.5bp area.

Bank of America Merrill Lynch and Credit Suisse are the bookrunners on the deal, which was expected to price later on Monday.

Colombian assets have been hit hard by the tumble in the price of crude oil, with local assets bearing the brunt of the sell-off.   Continuación...