Colombian bank Banco Popular is preparing a 250-billion-peso ($137 million) local bond sale Wednesday, said Alianza Valores, a Bogota brokerage firm arranging the sale.
Banco Popular, which is backed by conglomerate Grupo Aval Acciones y Valores S.A. (GRUPOAVAL.BO), will sell 15-, 24-, 36- and 60-month bonds linked to either Colombia’s banking reference index known as IBR, the 90-day benchmark interest rate known as DTF, or consumer inflation, the brokerage firm said Monday.
The IBR and DTF serve to protect investors against expected interest rate increases this year of 50 basis points by Colombia’s central bank. The third serves as protection against possible changes in inflation, which is running at 3.7% annually through 2011.
The issue, Banco Popular’s first of 2012, could be increased to COP400 billion depending on demand. Last year the bank issued COP400 billion in sales that were 1.8 times oversubscribed.