BOGOTA, May 6 (Reuters) - Colombian holding company GrupoSura will offer up to 750 billion pesos ($390 million) of bonds in the local market on Wednesday, to pay off existing debt, the group said.
GrupoSura will offer bonds with two, five, nine and 16 year maturations in an effort to raise 600 billion pesos, with the option to increase the offer by 150 billion more in case of high demand.
The issue is part of 1.3 trillion pesos the financial regulator has authorized the company to sell.
“The resources which come from the issue will be destined one hundred percent for debt repayment,” said GrupoSura in their notice of the public sale.
The yield on the paper will be tied to inflation and the central bank’s IBR index, the company said.
GrupoSura also has interests in Chile, Peru, Mexico and Uruguay through its subsidiaries, including the bank Bancolombia , cement-maker Grupo Argos and insurance company Suramericana.
Colombian companies are preparing a wave of bond sales, jumping at the opportunity to borrow at lower cost after J.P. Morgan’s decision to boost the Andean nation’s debt in its indexes drew an influx of foreign cash into its financial markets.
$1 = 1,923.07 Colombian pesos Reporting by Nelson Bocanegra, writing by Julia Symmes Cobb; Editing by Bernadette Baum