Two Sullivan & Cromwell LLP offices and Brigard Urrutia in Bogotá have helped Bancolombia carry out a US$800 million notes issuance and complete a concurrent tender offer.
Three Cleary Gottlieb Steen & Hamilton LLP offices and Philippi Prietocarrizosa Ferrero DU & Uría (Colombia) advised the underwriters and dealer managers.
The issuance closed on 24 June.
The notes are set to mature in 2034 and have a coupon of 8.63%.
Bancolombia will use the proceeds of the issuance to repurchase its 6.09% notes due in 2027 and the remaining proceeds will be used for general corporate purposes.
At the same time, the Colombian bank also made a tender offer to repurchase its 3% notes due in 2025 and up to US$400 million of its 6.9% notes which will mature in 2027. The offer expires today.
In April, Bancolombia formed part of a consortium of banks that funded construction companies Ortiz and KMA in its development of the Troncales de Magdalena 5G dual toll road. This came shortly after the bank’s Panamanian branch gave a loan to Colombian oil producer SierraCol Energy for the acquisition of several assets.
Latin American banks regularly turn to the local and international capital markets to raise funds. In June, Peru’s Interbank registered a new bond programme worth up to US$300 million. This came shortly after Ecuador’s Banco del Pacífico and Banco Bolivariano raised funds in offerings of dollar-denominated diversified payment rights.
Counsel to Bancolombia
Sullivan & Cromwell LLP
Partner Patrick Brown and associate Emily St. Marie in Los Angeles; and associate Renata Mascarenhas in New York
Brigard Urrutia
Partners Carlos Fradique-Méndez and Luis Gabriel Morcillo and associates Viviana Araújo and Valentina Bocanegra in Bogotá
Counsel to BofA Securities, Citigroup Global Markets and JP Morgan Securities
Cleary Gottlieb Steen & Hamilton LLP
Partners Adam Brenneman and Matthew Brigham and associates Sofia Falzoni, Nicole Mueller, Victoria Ju and Mingyu Tang in New York; associate Silvia Fittipaldi in São Paulo; and associate Samuel Chang in Washington, DC
Philippi Prietocarrizosa Ferrero DU & Uría (Colombia)
Partner Hernando Padilla and associates Daniel Vargas, Manuela Arenas, Neider Londoño and Tomás Velasquez in Bogotá
