Bonds News

Colombia to swap local bonds expiring in 2021, finance ministry says

BOGOTA, Oct 21 (Reuters) - Colombia will swap some of its internal public debt with an expiry date of 2021 for bonds extending out as far as 2037, the finance ministry said on Monday.

The government did not say how much so-called TES-UVR paper would be swapped in the Tuesday operation. But it said the new paper, which is tied to inflation, will come due in 2027 and 2037.

According to ministry figures, the government has issued 20.7 trillion pesos ($6.04 billion) in TES-UVR bonds due in 2021.

The swap will not increase net government debt, the ministry said in a statement. TES bonds make the second-largest contribution to public finances in Colombia, after tax collection.

Some 314 trillion pesos in TES had been issued through September, a fourth of which is held by foreign investment firms.

$1 = 3,428.63 Colombian pesos Reporting by Nelson Bocanegra Writing by Julia Symmes Cobb; Editing by Tom Brown