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Colombia Launches New Bonds Offering and Tender Offer

In an important development for the financial markets, the Republic of Colombia announced the initiation of a global offering of new bonds and a concurrent tender offer. This move is aimed at optimizing the country’s debt management structure and ensuring liquidity in the bond market.

New Bonds Offering Details

The new global bonds, denominated in U.S. dollars, include bonds maturing in 2030 and 2035. The '2030 Bonds' and '2035 Bonds' are strategically designed to appeal to a wide array of international investors.

Colombia's bond offering will be managed by renowned financial institutions, including BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, and Scotia Capital (USA) Inc., who will act as Joint Book-Running Managers. Each bond segment will come with its own preliminary prospectus, available upon request, as the country aims for transparency and accessibility in this offering.

Furthermore, applications will be submitted to list these new bonds on the Luxembourg Stock Exchange, enabling them to trade on the Euro MTF market. Additionally, Colombia plans to seek admission for trading on the London Stock Exchange's International Securities Market, broadening its reach within global financial markets.

Tender Offer for Outstanding Bonds

In tandem with the new bonds offering, Colombia is launching a tender offer for its existing 4.500% Global Bonds set to mature in 2026. This tender seeks to purchase a specific aggregate principal amount not exceeding a predetermined maximum amount set at the government's discretion. The tender offer was officially launched on April 15, 2025, at 8:30 a.m. New York time.

The tender process is structured into two types: Simple Tenders and Reinvestment Tenders. Simple Tenders will close at noon New York time, while Reinvestment Tenders will conclude at 1:00 p.m. that same day. Following the close of the tender period, Colombia is expected to disclose the total amount of tenders accepted and any relevant proration factors.

Holders of old bonds can place their tender orders exclusively through designated Dealer Managers. Those wishing to engage in the tender process without an account with a Dealer Manager are advised to work through authorized brokers or banks. Importantly, tenders will not be accepted through systems like Euroclear or DTC.

Accrued interest on the old bonds will be paid to holders whose tenders are accepted, adding value to participants and encouraging participation in the tender offer. The anticipated settlement date for accepted tenders is set for April 23, 2025, while the scheduled settlement for the new bonds offering is expected for April 25, 2025.

Prospects and Strategic Intent

Through this dual approach of launching new bonds while facilitating a tender offer for existing debt, Colombia seeks not just financial optimization but also enhanced investor confidence. This strategy reflects Colombia’s commitment to maintaining a robust and responsive debt profile in light of evolving market conditions.

Investors interested in these offerings can access detailed information and prospectus supplements through the respective Dealer Managers or directly via Colombia's designated sites. With the prospect of increased liquidity and favorable terms, both existing and potential investors are excited about the future trajectory of Colombia's bond market.

With this bold initiative, Colombia aims to strengthen its financial position and provide opportunities for investors looking to engage with the nation’s evolving economic landscape.