World Bank Launches its First Colombian Pesos Bond
Washington, DC, March 30, 2004 – Today, the World Bank issued its first bond denominated in Colombian pesos. The bonds, for an amount of COP 535.6 billion (about USD $200 million), will mature on September 30, 2010. The coupon is linked to the Colombian consumer price index (CPI), and will offer a spread of 4.40% over this index.
This bond issue is a milestone for the World Bank. Although the institution has issued bonds in other Latin American currencies such as Mexican peso, Chilean peso and Brazilian reals, this Colombian peso transaction is the first placed exclusively in a domestic market in Latin America. In addition, it is the first World Bank bond issue listed on a Latin American stock exchange - the Bolsa de Valores de Colombia. Previous bond issues in Latin American currencies have been placed and listed in markets outside the region.
Further characteristics are:
Settlement date: March 30, 2004
Maturity Date: September 30, 2010
Issue price: 100%
Coupon: linked to the Colombian Consumer Price Index (CPI)
Denomination: COP 1,000,000
Form of Notes: Permanent global notes
Listing: Bolsa de Valores de Colombia
Clearing systems: DECEVAL SA
According to Doris Herrera-Pol, Manager of Capital Market Operations of the World Bank Treasury, "this transaction is in the best tradition of our institution as a cooperative endeavor among the countries that are its shareholders. Colombia has been a major user of World Bank financing for its own growth and development, so it is especially gratifying that it is now at a point at which is can open its market to help finance the World Bank itself."
ABN Amro Bank NV was the arranger of this transaction, and was joined by a selling group of Colombian financial intermediaries including Corfinsura as lead manager and Alianza Valores, Ultrabursátiles and Suvalor as the selling agents for the bonds.
The World Bank's bond products and investor presentation can be accessed through the website of the World Bank for bond investors (www.worldbank.org/debtsecurities).
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