Colombia plans to sell about 30.5 trillion pesos ($15 billion) of local bonds in 2015, or 1.4 trillion pesos less than in a government statement earlier this week, according to Public Credit Director Michel Janna.
The previous statement, on Oct. 1, did not include the impact of a debt swap the Finance Ministry is planning to conduct later this year with the Treasury, he said in an interview today in his Bogota office.
The government said Sept. 26 that it plans to buy back 1.5 trillion pesos of the bonds due in 2015 and 2018 from the Treasury in exchange for securities with due dates ranging from 2017 to 2026.
This week, in the government’s first bond exchange with investors since 2011, the Finance Ministry bought back 5.9 trillion pesos of local bonds due in 2015 and 2018 in exchange for debt due in 2017 to 2026.
The swaps are “excellent news” for investors who currently hold the country’s debt because it will mean a lower supply of new bonds, Janna said.
Foreign investors increased holdings of the local Colombian bonds, known as TES, to a record 14.6 percent of the amount outstanding as of last week, up from 13.4 percent at the end of August, according to Janna.
While Colombia is “no hurry” to sell overseas debt, the country may “take advantage of market opportunities” this year, Janna said. The country has flexibility to bring forward as much as $3 billion of planned 2015 issuance to this year, he said.
While lawmakers would need formally to approve those bond sales, the Finance Ministry already has authorization for $1 billion of issuance based on a 2013 approval, he said.
bloomberg.com
The previous statement, on Oct. 1, did not include the impact of a debt swap the Finance Ministry is planning to conduct later this year with the Treasury, he said in an interview today in his Bogota office.
The government said Sept. 26 that it plans to buy back 1.5 trillion pesos of the bonds due in 2015 and 2018 from the Treasury in exchange for securities with due dates ranging from 2017 to 2026.
This week, in the government’s first bond exchange with investors since 2011, the Finance Ministry bought back 5.9 trillion pesos of local bonds due in 2015 and 2018 in exchange for debt due in 2017 to 2026.
The swaps are “excellent news” for investors who currently hold the country’s debt because it will mean a lower supply of new bonds, Janna said.
Foreign investors increased holdings of the local Colombian bonds, known as TES, to a record 14.6 percent of the amount outstanding as of last week, up from 13.4 percent at the end of August, according to Janna.
While Colombia is “no hurry” to sell overseas debt, the country may “take advantage of market opportunities” this year, Janna said. The country has flexibility to bring forward as much as $3 billion of planned 2015 issuance to this year, he said.
While lawmakers would need formally to approve those bond sales, the Finance Ministry already has authorization for $1 billion of issuance based on a 2013 approval, he said.
bloomberg.com
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