Colombia issued a 10-year bond worth $1 billion at a historically low interest rate this week.
The measure has significantly marginalized borrowing costs for the government, and it has raised the positive outlook of the Colombian economy, according to the Colombia Ministry of Finance.
An issuance of $1 billion in US dollar-denominated debt was offered to investors via Goldman Sachs and Deutsche Bank, attracting an interest rate of 2.7%. The bond yields 88 basis points above US Treasury bonds, which behave as a benchmark in the international sovereign debt market.
The Ministry of Finance said that the appetite for Colombia is strong, reporting that the offer was three times over subscribed.
Colombia’s $1 billion issuance was the first of its $2.6 billion sovereign debt program sales.