Bancolombia to issue $501 million in subordinate bonds

martes 23 de septiembre de 2014 08:54 GYT

BOGOTA, Sept 23 (Reuters) - Bancolombia, Colombia's largest bank, will on Wednesday issue up to one billion pesos ($501.8 million) in subordinated bonds on the local market and use the funds for services at its banking branches, the bank said early on Tuesday.

Bancolombia will offer 10-, 15- and 20-year paper as part of the issue, which is the first of a global quota of 3 billion pesos ($1.5 billion).

"The resources from this issue will be destined 100 percent to development of our social objective, furthering all operations and business legally allowed in our banks," the company said in a statement.

Bancolombia offered to deliver the 10-year bonds at a yield equivalent to the consumer price index (CPI) plus 4.6 percent, the 15-year bonds at CPI plus 4.9 percent and the 20-year bonds at CPI plus 5.1 percent.

The bank's subordinate bonds have a AA+ rating from Fitch Ratings.

Bancolombia is owned by Grupo Empresarial Antioqueno.

($1=1,992.68 Colombian pesos) (Reporting by Nelson Bocanegra; Writing by Julia Symmes Cobb; Editing by Chizu Nomiyama)