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Colombia issues bonds in dollars by 2061 (Correction)

(Bloomberg) – Colombia has returned to international capital markets with its longest-maturing dollar bond as it seeks to take advantage of low borrowing costs and further boost debt obligations. The government sold $ 1.3 billion in a 40-year bond, along with $ 790 million of its existing debt due in 2031, according to a person familiar with the matter, who asked not to be identified because she is not authorized to speak on the matter. Colombia offered to buy back US $ 1,230 million of debt in an auction. “It is good for this year in particular because the Government will need fewer resources to cover maturities if they are included in this swap,” said Andrés Pardo, chief market strategist for Latin America of XP Investments in Bogotá. However, the nation’s difficult fiscal situation will last for years, he said. The fiscal deficit is expected to reach 7.6% of gross domestic product this year, as Colombia struggles to maintain its credit rating that is only one level above grade. speculative. The deficit widened to an estimated 8.9% in 2020. Colombian bonds maturing this year have an outstanding principal of $ 1.5 billion before the buyback, according to data compiled by Bloomberg. Bonds due 2061 were valued at 210 basis points over US Treasuries, down from 230 at the launch, according to a person familiar with the matter. The portion due in 2031 was valued at 2.8%, down from an initial 2.95%. “Countries looking to issue bonds are rushing because Treasuries are rising,” said Klaus Spielkamp, ​​director Fixed Income Sales Manager at Bulltick LLC in Miami. “They want to make sure they lock in these rates before they go up.” The offer comes days after Mexico sold its first sovereign bond aimed at Taiwanese investors. The nation’s $ 3 billion sale of Taiwan-listed 50-year bonds garnered $ 10 billion in orders, according to Mexico’s Finance Ministry Original Note: Colombia Selling Longest Dollar Bond to Date Amid Buyback Offer reference on Taiwan quotes. This story was first published on January 12. Prices and buyback details are updated.) For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source. © 2021 Bloomberg LP

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