Economy 1 MIN READ

Colombia performs internal public-debt swaps worth $637.2 mln

May 12, 2022By Reuters

Colombia on Thursday successfully performed an internal public-debt swap with the market for 2.6 trillion pesos ($637.2 million) in a move to improve the country’s debt profile, the finance ministry said.

The quantity of titles exchanged in the swap was equal to 81% of the offers presented to participants.

In the operation, the government received TES bonds due to mature in 2023 in exchange for UVR-denominated bonds due in 2025 and 2035, with yields tied to inflationary performance, and bonds maturing in 2042 to be paid in pesos.

“The transaction contributed to improving the profile of Colombia’s public debt, without increasing net indebtedness,” the finance ministry said in a statement.

The average life of the TES bonds portfolio went from 9.29 to 9.33 years, while the average coupon cost fell from 9.39% to 9.38%, the statement added.

“The swap we carried out today attracted offers from a wide range of institutional investors, which allowed us to extend the average term of our local debt,” said Finance Minister Jose Manuel Restrepo.

The transaction followed two tranches of swaps made in March and April, for 2.3 trillion pesos and 2.6 trillion pesos, respectively.

($1 = 4,080.32 Colombian pesos)

(Reporting by Nelson Bocanegra
Writing by Oliver Griffin
Editing by Leslie Adler)

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