Bogotá readies local bond sale

Bogotá readies local bond sale

Bonds Debt Capital Markets Corporate & Sovereign Strategy Fixed Income Coronavirus Colombia Andean

Editor's note: LatinFinance is making some of its most important coronavirus-related material available to all readers. Visit our coronavirus section for all our coverage and sign up to receive the Daily Brief newsletter in your inbox every morning.

The Bogotá city government said Thursday that it plans to issue COP600 billion ($153 million) worth of bonds in the local market on May 21, raising money to fund its efforts against COVID-19.

The notes will be denominated in UVRs, units of account that adjust for inflation, and carry maturities of up to 30 years with short-, medium- and long-term tranches, the city government said in a statement. It added that it hired Banco Itaú to lead the deal.

"This offering is framed in the city's COP2 trillion debt program, of which COP1.4 trillion were successfully issued in the last quarter of 2019," said Juan Mauricio Ramírez, Bogotá's finance secretary, after the city's fiscal council Confis approved the bond sale on May 5.

The deal will bring Bogotá's outstanding debt to COP3.4 trillion, the city said. Bogotá announced its intention to issue local bonds in April during an online presentation by Ramírez.

S&P Global affirmed its AAA rating for Bogotá's COP2 trillion bond program in April, while Fitch Ratings upheld the city government's long-term rating at AAA(col) with a positive outlook in June 2019.