June 11, 2014 / 2:40 PM / 4 years ago

Colombia leaves door open to selling 100-year bond this year

BOGOTA, June 11 (Reuters) - Colombia is keeping open the option of selling a 100-year bond this year to finance part of its 2015 budget, the finance minister said on Wednesday, after an investment bank proposed to issue sovereign debt with a century-long maturity last week.

Mauricio Cardenas said the investment bank, which he did not name but which weekly news magazine Semana identified as Goldman Sachs, had offered to issue the debt with a 5.7 percent coupon.

“We’re simply saying, ‘No thanks, but leave us the option and if at some time we want to use it later in the year to pre-finance 2015, then we’ll do it.’ But it’s very good to have this kind of proposal because it shows there is confidence and above all that the country can have easy access to international markets,” Cardenas told an economic forum in Bogota.

The longest-running bond Colombia has issued to date has been for 30 years.

With steady growth of 4 percent or more and low inflation, the sound management of Colombia’s economy has raised its status among investors and analysts. J.P. Morgan began raising the weighting of Colombian debt in two of its indexes from May 31. (Reporting by Nelson Bocanegra; Writing by Peter Murphy; Editing by Dan Grebler)

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