Colombia has filed with the US Securities and Exchange Commission for a new issue of global dollar-denominated bonds maturing in 2056. Interest payments would begin on 1 May 2027. The filing signals a return to international debt markets under the current director of Crédito Público, César Arias, after his predecessor Javier Cuéllar said he would not seek more external financing. The amount to be placed, the coupon rate and the use of proceeds for debt reprofiling have not yet been disclosed.
Terms of the proposed bonds
The bonds would be direct, general, unconditional, unsecured and unsubordinated obligations of Colombia. They would be backed by the credit capacity of the Republic and rank equally with the country’s other unsecured, unsubordinated external obligations. The minimum denomination would be $200,000, with integral multiples of $1,000 above that level.
The prospectus allows Colombia to repurchase the bonds in whole or in part before maturity. Such a redemption would require between 10 and 60 days’ notice.
Shift in financing strategy
Cuéllar had signalled that the government would not rely on additional external borrowing. The new filing suggests that strategy is now being reconsidered. Arias’s approach appears to move the country back toward placing debt internationally.
Source: SEC
