EM LATAM CREDIT: Colombia: USD Bond Buyback - Positive
(COLOM; Baa3/BBneg/BB+neg)
"Global Banks Buy $5.4 Billion of Colombia’s Bonds Through Tender" - Bbg
Total purchase price to be paid for bonds validly tendered and accepted is USD4.6bn excluding accrued interest and will settle Sept. 8. Six banks announced the tender August 27th with the intention of using the bonds as a hedge against a Total Return Swap (TRS) they planned to execute with Colombia. Please see the link to full details of the results:
Roughly half of the bonds accepted were in the 7-year and under part of the curve while second most popular was in the 20-year part of the curve and the rest were tendered in the long end.
Recall that the Colombia government already bought back about USD2bn of bonds early last month. The government previously announced the intention to borrow in EUR and CHF and buy back discounted USD bonds so this is further execution of that plan.
COLOM 8% 2035 were last quoted T+298bp, 68bp tighter since June 30th and 34bp tighter YTD.
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