#Colombia #Bogota #bonds #Offer

On August 4, 2025, the Republic of Colombia officially launched a cash purchase offer for its outstanding bonds, aimed at registered holders or beneficial owners collectively referred to as 'Holders'. This initiative is part of Colombia's strategy to manage its debt and improve its financial standing in the international market.

Objective of the Offer

The primary objective of this offer is to facilitate the buyback of specific bond series, allowing the government to take favorable action in its fiscal management. The Offer entails a maximum amount to be paid for bonds that are validly tendered, determined by the government at its discretion. Colombia states that this move is not reliant on any minimum participation from any series of existing bonds, simplifying the process for holders who choose to participate.

Purchase Details

Colombia has specified a purchase price for each series of existing bonds, as follows:

• - 3.000% Global Bonds due 2030: $886.25 per $1,000 principal amount
• - 3.125% Global Bonds due 2031: $847.50 per $1,000 principal amount
• - 3.250% Global Bonds due 2032: $823.75 per $1,000 principal amount
• - 6.125% Global Bonds due 2041: $850.00 per $1,000 principal amount
• - 4.125% Global Bonds due 2042: $673.75 per $1,000 principal amount
• - 5.625% Global Bonds due 2044: $780.00 per $1,000 principal amount
• - 5.000% Global Bonds due 2045: $710.00 per $1,000 principal amount
• - 5.200% Global Bonds due 2049: $708.75 per $1,000 principal amount
• - 4.125% Global Bonds due 2051: $612.50 per $1,000 principal amount
• - 3.875% Global Bonds due 2061: $567.50 per $1,000 principal amount

In addition to this purchase price, holders will also receive any accrued and unpaid interest, calculated from the last interest payment date up to the settlement date.

Tendering Process

Holders wishing to participate must submit their tenders through designated direct participants such as The Depository Trust Company, Euroclear, or Clearstream, following the specific deadlines set by these intermediaries. Bonds may only be tendered in minimum authorized denominations, establishing a structured process that aims to enhance transparency and efficiency.

As of the tender announcement, Colombia retains the right to modify the purchase price, adjust the terms of the offer, or terminate the offer entirely. Should this occur, any bonds previously tendered will be returned to their holders. Bondholders can withdraw their tendered bonds at any point before the expiration time on August 8, 2025, without penalty. The settlement for accepted tenders is set to occur on August 14, 2025.

Colombia's approach emphasizes flexibility and the government’s willingness to negotiate in order to maintain a healthy economic stature amidst changing market conditions.
Additionally, Global Bondholder Services Corporation has been appointed to manage the tender and information aspects of this buyback offer. Interested holders can download detailed information from their official website.

Conclusion

This offer presents a strategic opportunity for existing bondholders to liquidate their investments potentially at a premium while allowing the Colombian government to strengthen its fiscal position and streamline its debt portfolio. The move, viewed by many market analysts as a pragmatic response to evolving economic circumstances, reflects Colombia's commitment to maintaining a transparent and participatory financial market.

For more information, and to learn how to participate in the Offer, bondholders are encouraged to consult with their financial advisors or reach out directly to the managerial contacts outlined in the Offer Document.