Friday, 19 December 2008

CAF Sells Peso-Denominated Debt in Colombia (Update)

Yesterday, a reliable source gave me details on the 245 billion peso bond sale by CAF in Colombian debt markets. 

-- Bids for the issue: 300 billion pesos (CAF said it was 2.4 times thw amount offered. Some there's some discrepancy in the data.)
-- Yields for the five-year issue: 11.25 percent, or a spread of about 1.06 percentage point over the DTF benchmark rate (this week it stands at 10.19 percent.)
-- Yields for the ten-year portion of the sale: 11.75 percent, or 1.56 points above the DTF. 

As we pointed out yesterday, the returns seems attractive for a AAA rated issuer and especially during a time where there's plenty of liquidity (seasonally speaking) in the economy. 

CAF has permission to sell another 750 billion pesos for the next two to three years. It may be reasonable to expect more sales in 2009 to bolster the local capital markets. 

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