CAF Sells COP245 Billion Worth Of 5-Year, 10-Year Bonds In Colombia
The amount sold is higher than the COP150 billion the lender had initially offered.
"CAF is committed to strengthen the region's capital markets," CAF President Enrique Garcia said in a press release.
With the issuance, Garcia added, CAF encourages other multilateral lenders to tap the Colombian capital market.
CAF will use the proceeds of the sale to finance development projects in the region.
The five-year bonds will pay a fixed rate of 11.25%, while the 10-year bonds will pay 11.79%. On Monday, CAF said it was ready to pay a maximum annual rate of 11.80% on the five-year bonds and 12.30% on the 10-year bonds.
The local unit of Banco Bilbao Vizcaya Argentaria SA (BBV) handled the sale.
"Investors secured an excellent bond yield, especially if you take into account that the (benchmark) treasury bond 2020 is paying around 10.962%," said Ricardo Herrera, an analyst at local brokerage Alianza Valores.
That also explains why demand for the bonds was 2.4 times higher than the amount sold, he added.
The CAF bond issuance followed others from Colombian companies that started tapping the local bond market in late November to take advantage of pension funds' and banks' liquidity to finance themselves at attractive interest rates.
Recent bond issuers include Interconexion Electrica SA (ISA.BO); EPSA, the local unit of Spain's Union Fenosa SA (UNF.MC); and Codensa, the local unit of Spain's Endesa SA (ELE.MC).
-By Diana Delgado, Dow Jones Newswires; 571-6107044 ext 1132; diana.delgado@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=W5FbbN3Trjjf9VIDjO%2Fmgg%3D%3D. You can use this link on the day this article is published and the following day.
Publié le 16 Décembre 2008 Copyright © 2008 Dowjones
Partager sur:
