Colombian Government Bonds Offer Announced by Major Financial Institutions
Announcement of the Bond Purchase Offer
On August 27, 2025, a group of prominent financial institutions including Banco Bilbao Vizcaya Argentaria S.A., Banco Santander S.A., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, and J.P. Morgan Securities plc, collectively referred to as the Purchasers, made a significant announcement regarding the offer to purchase existing bonds from the Republic of Colombia. This structured offer aims to provide an opportunity for holders of these bonds to secure liquidity in exchange for their assets.
Details of the Offer
The announced offer, which will be executed for cash, invites all registered holders of the bonds to tender their holdings under specific terms outlined in the Offer Document. The total purchase price for the bonds will not only account for the principal amount but also include accrued interest that has not yet been paid. This comprehensive approach ensures bondholders receive fair compensation for their investments.
The bonds in question consist of various series, each with distinct characteristics. Below, we summarize key data pertaining to the offer:
| Series | Outstanding Principal Amount | CUSIP/ISIN | Purchase Price |
|---|---|---|---|
| ------ | ------- | --- | ------- |
| 3.875% Global Bonds due 2027 | $1,740,144,000 | 195325 DL6 | $996.25 |
| 4.500% Global Bonds due 2029 | $2,000,000,000 | 195325 DP7 | $980.00 |
| 3.000% Global Bonds due 2030 | $1,542,968,000 | 195325 DR3 | $901.25 |
| 3.125% Global Bonds due 2031 | $2,539,952,000 | 195325 DS1 | $866.25 |
| 3.250% Global Bonds due 2032 | $2,000,000,000 | 195325 DZ5 | $836.25 |
| 6.125% Global Bonds due 2041 | $2,500,000,000 | 195325 BM6 | $875.00 |
| 4.125% Global Bonds due 2042 | $514,546,000 | 195325 EA9 | $700.00 |
| 5.625% Global Bonds due 2044 | $2,500,000,000 | 195325 BR5 | $805.00 |
| 5.000% Global Bonds due 2045 | $3,670,948,000 | 195325 CU7 | $737.50 |
| 5.200% Global Bonds due 2049 | $2,168,483,000 | 195325 DQ5 | $738.75 |
| 4.125% Global Bonds due 2051 | $1,035,726,000 | 195325 DT9 | $645.00 |
| 3.875% Global Bonds due 2061 | $751,835,000 | 195325 DX0 | $601.25 |
Holders will be required to tender bonds in amounts corresponding to the minimum authorized denominations, ensuring an organized and efficient transaction process. The threshold for each bond series is set at a minimum of $200,000 plus integral multiples of $1,000.
Conditions of the Offer
The Purchasers reserve the right to modify various elements of this Offer, including the maximum purchase prices and acceptance of tenders. Notably, the Offer is predicated on executing total return swap transactions with the Republic of Colombia. Therefore, the completion of the purchase will also depend on specific regulatory conditions being met.
According to the terms, the Offer will remain open until September 3, 2025, giving bondholders limited time to participate. After this date, holders may withdraw their bonds from the Offer, but it is crucial to adhere to stipulated deadlines provided in the Offer Document. Moreover, each Purchaser's liability for payment is strictly limited to the specific bonds they agree to accept, which introduces an element of risk for holders whose bonds are not purchased.
Following the expiration date, any accepted bonds will be processed with the expected settlement on September 8, 2025. In this phase, bondholders will be compensated with both the purchase price and applicable accrued interest from the last payment date up until settlement.
Conclusion
This bond purchase initiative is a significant development for bondholders of the Republic of Colombia, especially in light of the favorable purchase prices set by the leading financial institutions. Stakeholders are advised to review the terms carefully and make informed decisions swiftly, maximizing their opportunities within the limited participation window. As competition intensifies in the financial markets, such offers may shape investment strategies and influence market dynamics moving forward.
Topics Financial Services & Investing）
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