Colombia’s Banco Davivienda offers new shares

Colombia’s Banco Davivienda will offer up to 800 billion pesos’ ($420 million) worth of preferred shares starting on Thursday to finance an expansion plan in Central and South America, the bank said on Wednesday.

Colombia’s third-largest bank by assets, Davivienda set a price of 20,000 pesos ($10.51) per share for the placement of up to 40 million new shares from Thursday until Nov. 10, Chief Executive Officer Efrain Forero told a news conference.

Davivienda in August announced plans to eventually issue a total of 96 million new shares but the sale had been delayed until now due to market turbulence.

A year earlier, the bank listed 26 million shares in an initial public offering that was 12 times oversubscribed and raised $230 million.

Since then Davivienda has been one of Colombia’s most active players in capital markets, seeking financing to expand in Colombia, Chile, Peru and Central America.

In August the bank sold 500 billion pesos’ ($264 million) worth of bonds in a deal that was nearly three times oversubscribed.

It also plans to issue $350 million in bonds on international markets and sell equity shares on a number of exchanges, including Wall Street.

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