International Finance Corporation’s COP 33.700 Million ($11.6 Million) Notes Offering

Gómez-Pinzón Zuleta advised on the transaction

IFC, a member of the World Bank Group, increased its efforts to bolster capital markets in Colombia by becoming the first multilateral organization to issue bonds in the country under a new regulation that facilitates multilateral organizations’ issuances in the local market. This will pave the way for other multilateral institutions to also tap the Colombian market for their own issuances.

The COP33.7 billion issuance ($11.6 million) in the local Colombian market was purchased mostly by insurance companies that were interested in investing in local bonds from an international institution with a triple-A credit rating like IFC. The issuance is part of an IFC program for bond issuances in Colombia that could total as much as $1 billion in the next three years.

The issuance leveraging on the new regulation established by the Colombian government that allows multilaterals to issue bonds in the local Colombian markets to institutional investors under the umbrella of their global issuance programs.

The bond sale is also part of IFC’s strategy to promote the development of capital markets in Colombia by introducing a new funding alternatives and setting an example that can be used in the future for further issuances by IFC or by other similar institutions. The issuance is an example of harmonizing issuance and disclosure standards for multilateral organizations across global markets. The issuance will be used for IFC’s operations, including funding of projects Colombia.

This transaction follows other landmark operations in Colombia by IFC, such as fully subscribing the first green bond issuances by two local banks earlier this year.

The new bond sale is listed in Colombian Stock Exchange.

Credicorp acted as the lead manager of the transaction.

Gomez-Pinzón Zuleta advised with a team including Daniel Londoño (Picture), José Luis Suárez, Germán Villamil, Diana Bogotá and Tonia Orozco.

 

Involved fees earner: Daniel Londoño – Gómez-Pinzón Zuleta Abogados; José Luis Suárez Parra – Gómez-Pinzón Zuleta Abogados; Germán Villamil-Pardo – Gómez-Pinzón Zuleta Abogados; Diana Bogotá Prieto – Gómez-Pinzón Zuleta Abogados; Tonia Lucia Orozco Araujo – Gómez-Pinzón Zuleta Abogados;

Law Firms: Gómez-Pinzón Zuleta Abogados;

Clients: International Finance Corporation;

 

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Author: Ambrogio Visconti.