Bancolombia board OKs initial terms for up to COP 3 trillion of notes

By Marisa Wong

Madison, Wis., June 26 - Bancolombia SA's board of directors approved terms for its proposed issue of senior notes and subordinated notes on Monday, according to a 6-K filing with the Securities and Exchange Commission.

On May 28 the board authorized the issuance of up to COP 3 trillion principal amount of ordinary notes and subordinated notes. As previously reported, the notes will be offered in Colombia in one or more tranches.

According to the latest filing, the senior notes will have maturities of between 18 months to 40 years, and the subordinated notes will have maturities of between five and 40 years.

The maximum coupon for the senior notes and subordinated notes will be determined by the legal representative of Bancolombia and will be published at pricing.

As noted before, Banca de Inversion Bancolombia SA Corporacion Financiera will act as structuring agent and lead manager and joint bookrunner for all note issuances. Alianza Fiduciaria SA will act as the representative for holders of the notes.

Proceeds from the note offerings will be used to advance the Medellin, Colombia-based bank's corporate objectives.

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