Colombian electric company Celsia announced on Thursday that it would raise $422 million in a peso-denominated bond sale, which is scheduled to hit the country’s market.
“This issue constitutes an additional alternative for optimizing the capital structure of the company,” read a statement from Celsia.
Celsia, 50.2% of which is held by Argos Group, makes up 18% of the investment group’s holdings. Argos’ holdings range from natural resources development to logistics.
The electric energy company’s plans for raising capital make for another Colombian bond offering in a wave of corporate and sovereign debt issuances over the past month.
Raising capital
Colombian bonds are taking the markets by storm. Earlier this week the Colombian government announced that it would sell $263 million in peso-denominated sovereign debt. That came on top of a $200 million US dollar-denominated bond sale on the international market.
Vice President of Research Alejandro Reyes told Colombia Reports that the government is likely looking to raise capital for financing projects in the short term as it sees attractive financing options getting squeezed in the near future.
MORE: Colombia issues $263m in sovereign debt
Celsia not alone
Other companies’ moves to raise capital by offering bonds on the local and international markets signals an effort to make investments in infrastructure and energy.
And there’s investor appetite. Ecopetrol, Colombia’s state-directed oil and gas company, found its $2.5 billion dollar corporate debt more than 3 times over-subscribed.
Isagen, a state-controlled electric energy company, is contemplating the idea of bringing a debt offer to market sometime this year as the government tries to find a buyer.
Celsia is a publicly listed company that trades on Bogota’s Bolsa de Valores stock exchange. On Friday, the company’s stock jumped 0.16%, trading at 6,240 pesos per share, according to Reuters.
Sources
- La junta directiva de Celsia aprueba emision de bonos en el mercado Colombiano (Celsia)
- Electrica Colombiana Celsia aprueba cupo de emision por $422m (Reuters – español)
- Isagen contempla emision de bonos por $1,6 billones de pesos (El Espectador)
