Colombian financial group GrupoSura’s stock dropped 2.16% as Standard & Poor’s discusses downgrading its debt.
The credit ranking agency said that it might downgrade the company’s credit rating to “BBB-” which would put GrupoSura’s rating in the “junk” category. The potential downgrade was prompted by the company’s plans to spend $3.75 billion to acquire a significant portion of Dutch group ING’s South American assets.
Gruposura announced Wednesday that it might issue $2.1 billion in shares to raise money for the acquisition. Approximately $1.4 billion would be issued locally with $700 million offered internationally. The company has not said how they would account for the remaining money.
The deal with ING is quite large for Colombian international investment and would account for more than half of the entire country’s foreign investment this year.