Uribe said that the bond sale’s reception demonstrates the credibility of Colombia in the international markets and the stability of its economy.
The president said that Colombia was the first country in the world to successfully issue bond of this value on the world markets since the global financial crisis. The Treasury Department reported that the bonds, payable in 2021, received total bids for approximately 4.6 times the nominal amount.
The bond sale was announced at the World Economic Forum Wednesday.
This latest foray into the international markets comes as Colombia tackles its biggest budget deficit in five years, at 4.5% of GDP.
“The timing is ideal. There’s appetite for risk, Colombia offers high yield and it’s taking advantage of pent-up demand before the elections,” said Siobhan Morden, a debt strategist with RBS Securities in Stamford, Connecticut to Business Week.
Uribe pointed out that the bond sale will “generate stability to the country since the dollars will be spent paying obligations” rather than being monetized.