Bancolombia issues $494.6 million in subordinate bonds

miércoles 24 de septiembre de 2014 16:10 GYT

BOGOTA, Sept 24 (Reuters) - Bancolombia, Colombia's largest bank, issued 988 billion pesos ($494.6 million) in subordinate bonds on the local market on Wednesday, the stock exchange said in a statement.

Bancolombia offered 10-year paper at a yield equivalent to the consumer price index (CPI) plus 4.29 percent, 15-year bonds at CPI plus 4.65 percent and the 20-year bonds at CPI plus 4.79 percent.

The bank received offers for 1.25 trillion pesos' worth of bonds during the issue, which is the first in a global quota of 3 trillion pesos ($1.5 billion).

The funds raised will go to the company's banking operations.

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

Bancolombia is owned by Grupo Empresarial Antioqueno. ($1 = 1,997.91 Colombian pesos) (Reporting by Nelson Bocanegra; Writing by Julia Symmes Cobb; editing by Matthew Lewis)