The Colombian unit of Spain’s Banco Bilbao Vizcaya Argentaria (BBV)
plans to sell 500 billion Colombian pesos ($249 million) in bonds on
Tuesday.
The bonds are part of the COP1.7 trillion the bank agreed to sell
during 2008 and 2009. The bank already sold COP302 billion worth of
bonds in August last year.
BBVA Colombia SA (BBVACOL.BO) will sell two series of bonds
maturing in 2012. One series will be sold at the country’s benchmark
interest rate, DTF, plus a maximum spread of 1.90 percentage points.
The DTF is a weighted average of the rates paid by Colombian financial
institutions on 90-day certificates of deposit. The second series will
pay a maximum fixed-rate of 8%.
It will also auction three series of bonds maturing in 2014; at DTF
plus a maximum spread of 2.50 percentage points, inflation rate plus a
maximum spread of 5.10 percentage points and a maximum fixed-rate of
9.20%.
On its on two series of 2019 bonds, BBVA Colombia is willing to pay
inflation plus a spread of 5.90 percentage points and as much as 10% on
fixed-rate bonds.
The proceeds of the bond sale will finance the bank’s working capital, BBVA Colombia had said.
The last time shares of BBVA Colombia traded was on Friday, when they ended at COP131.
BBVA owns more than 90% of its Colombian unit.