Friday, 6 February 2009

Colombia Exchanged $1 Billion Out of $14 Billion in Swap-Eligible Bonds. Result is Quite Satisfactory

Colombia was one of the very first nations in Latin America that sought early refinancing of its obligations as the credit crisis unleashed. Such preemptive approach is helping improve the government's maturity profile for the next three years -- a very positive development as domestic and external conditions worsen. Colombia's finance ministry concluded this week a domestic bond swap to stretch out debt maturities and improve the liquidity of longer-term Treasury notes. The swap was worth 2.48 trillion pesos in fixed-rate TES maturing between 2009 and 2011 -- a similar amount to that swapped in October. Investors received in exchange notes due 2012, 2014, and 2018. This in addition reduces the likelihood of bigger-than-expected offerings of TES for the rest of the year.

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