Final Results of Colombia's Tender Offer for Outstanding Bonds Announced
On August 11, 2025, the Republic of Colombia revealed the results of its recent tender offer aimed at purchasing various series of its outstanding Global Bonds. The tender offer aimed at the following bonds:
1. 3.000% Global Bonds due 2030
2. 3.125% Global Bonds due 2031
3. 3.250% Global Bonds due 2032
4. 6.125% Global Bonds due 2041
5. 4.125% Global Bonds due 2042
6. 5.625% Global Bonds due 2044
7. 5.000% Global Bonds due 2045
8. 5.200% Global Bonds due 2049
9. 4.125% Global Bonds due 2051
10. 3.875% Global Bonds due 2061
The tender offer, which was first announced on August 4, 2025, concluded on August 8, 2025, at 5:00 PM New York City time. Publicized as a strategy to manage national debt, the offer attracted considerable interest, with a total aggregate principal amount of U.S.$2,958,462,000 in valid tenders submitted for purchase.
According to the final press release, the maximum purchase price for accepted bonds reached approximately U.S.$1,998,516,620.73. Meanwhile, the overall purchase price of all bonds tendered was notably higher, at around U.S.$4,856,558,734.57, indicating that the demand significantly surpassed the amount that Colombia was willing to accept. A proration strategy was then set in place to align with the limits established in the tender offer terms.
The results of the tender offer indicated that not all bonds tendered would be accepted as planned. The following summaries detail the aggregate principal amounts of the bonds that were tendered and those accepted:
- Accepted Amount: U.S. $0
- Proration Factor: 0%
- Accepted Amount: U.S. $0
- Proration Factor: 0%
- Accepted Amount: U.S. $485,454,000
- Proration Factor: 100%
- Accepted Amount: U.S. $829,052,000
- Proration Factor: 70%
The overall proration factors indicate that some bonds, especially those with higher amounts tendered, did not meet the qualification criteria for acceptance. Notably, bonds maturing in 2030, 2031, 2032, and 2041 were not accepted at all, while a few bonds received full acceptance.
The successful execution of the tender offer is expected to enable Colombia to capture a nominal debt discount approximating U.S.$1.0 billion. The issuance of bonds is part of the government’s initiative to effectively manage its public debt and alleviate financial pressures resulting from prior borrowing.
The settlement date for the accepted bonds is set for August 14, 2025, subject to change. Participants in the tender offer will receive the accepted purchase price, along with accrued interest up to the settlement date. As negotiations unfolding in the bond market continue to highlight the debt maturity schedules along with fiscal strategy evolutions, the Republic of Colombia’s actions reflect an adaptive approach to sovereign bond management.
For further inquiries regarding the tender offer details and potential ramifications, interested parties may contact the Dealer Manager, Citigroup Global Markets Inc., or the Global Bondholder Services Corporation, which acts as the Information Agent for these offerings.
1. 3.000% Global Bonds due 2030
2. 3.125% Global Bonds due 2031
3. 3.250% Global Bonds due 2032
4. 6.125% Global Bonds due 2041
5. 4.125% Global Bonds due 2042
6. 5.625% Global Bonds due 2044
7. 5.000% Global Bonds due 2045
8. 5.200% Global Bonds due 2049
9. 4.125% Global Bonds due 2051
10. 3.875% Global Bonds due 2061
The tender offer, which was first announced on August 4, 2025, concluded on August 8, 2025, at 5:00 PM New York City time. Publicized as a strategy to manage national debt, the offer attracted considerable interest, with a total aggregate principal amount of U.S.$2,958,462,000 in valid tenders submitted for purchase.
Purchase Price and Eligible Amounts
According to the final press release, the maximum purchase price for accepted bonds reached approximately U.S.$1,998,516,620.73. Meanwhile, the overall purchase price of all bonds tendered was notably higher, at around U.S.$4,856,558,734.57, indicating that the demand significantly surpassed the amount that Colombia was willing to accept. A proration strategy was then set in place to align with the limits established in the tender offer terms.
Breakdown of Accepted and Pro-rated Bonds
The results of the tender offer indicated that not all bonds tendered would be accepted as planned. The following summaries detail the aggregate principal amounts of the bonds that were tendered and those accepted:
- - 3.000% Global Bonds due 2030:
- Accepted Amount: U.S. $0
- Proration Factor: 0%
- - 3.125% Global Bonds due 2031:
- Accepted Amount: U.S. $0
- Proration Factor: 0%
- - 4.125% Global Bonds due 2042:
- Accepted Amount: U.S. $485,454,000
- Proration Factor: 100%
- - 5.000% Global Bonds due 2045:
- Accepted Amount: U.S. $829,052,000
- Proration Factor: 70%
The overall proration factors indicate that some bonds, especially those with higher amounts tendered, did not meet the qualification criteria for acceptance. Notably, bonds maturing in 2030, 2031, 2032, and 2041 were not accepted at all, while a few bonds received full acceptance.
Financial Implications
The successful execution of the tender offer is expected to enable Colombia to capture a nominal debt discount approximating U.S.$1.0 billion. The issuance of bonds is part of the government’s initiative to effectively manage its public debt and alleviate financial pressures resulting from prior borrowing.
The settlement date for the accepted bonds is set for August 14, 2025, subject to change. Participants in the tender offer will receive the accepted purchase price, along with accrued interest up to the settlement date. As negotiations unfolding in the bond market continue to highlight the debt maturity schedules along with fiscal strategy evolutions, the Republic of Colombia’s actions reflect an adaptive approach to sovereign bond management.
For further inquiries regarding the tender offer details and potential ramifications, interested parties may contact the Dealer Manager, Citigroup Global Markets Inc., or the Global Bondholder Services Corporation, which acts as the Information Agent for these offerings.
Topics Financial Services & Investing）
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