Colombia returned to the European debt market after a decade with an operation that broke records and that, according to the Ministry of Finance, constitutes a key step in the strategy for the management of liabilities and diversification of financing sources, since the most recent issuance, carried out in three sections, reached a total amount of € 4.1 billion, becoming the largest placement in euros in the history of the country.
The portfolio explained that it was bonds with maturities in 2028, 2032 and 2036, with coupons of 3.75%, 5%and 5.62%, respectively; while The weighted average coupon was 4.74%, which, for them, reflects an improvement compared to the initial reference levels.
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According to the Treasury, the conditions obtained will allow tax savings due to lower interest payments and, at the same time, reduce the exposure of the debt to the dollar, strengthening the exchange profile of the nation’s obligations.
The most striking result was the high demand of international investors in which the order book reached € 25,433 million, the highest figure ever registered by an emerging country in the European debt market.
The Ministry of Finance said that this movement will give a break to the Box of the Nation.
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“This appetite allowed to compress in 58 basic points the indicative levels of rate, which demonstrates the confidence of the international market in Colombia and in its medium -term financing strategy,” they said.
The operation also included a liabilities management component, with the repurchase of € 715 million in expiration bonds in March 2026 and with this decision, the Government seeks to relieve the calendar of immediate payments and mitigate the Refinancing risk next year, reducing the amount that should be covered in a single expiration.
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The Minister of Finance, Germán Ávila Plazas, highlighted the achievement and pointed out that “diversifying debt sources in coins other than the dollar is essential to shield public finances against exchange volatility scenarios. This issuance in euros not only allowed us to access the greater demand recorded by an emerging country, but also improve financial conditions and generate savings for the country”.
For his part, the public credit director, Javier Cuéllar, said the results They reinforce the strategy designed by the Nation in its medium -term debt management plan, since “the record in the orders book is a clear sign of the recovery of the confidence of the international market in Colombia. This success is not only a historical milestone, but a validation of the path that we have taken in the matter of responsible management of the debt”.
The Ministry of Finance said that this movement will give a break to the Box of the Nation.
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From the Ministry of Finance, the operation was highlighted for its triple benefit by contributing to the reduction of financing costs, expanding the investor base when attracting European capitals and improving the management of the maturity profile; While emphasizing that the use of European currency also allows better exchange risk administration, not depending exclusively on the dollar as a source of external indebtedness.
It is worth noting that in addition to the immediate financial impact, the placement has a strong symbolic component since it marks Colombia’s return to the European market after ten years of absence, with a sign of solidity that breaks records both in amount issued and in demand achieved. This, according to the Treasury, sends A positive message about macroeconomic stability and credibility of the country’s fiscal policy.
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This is why Germán Ávila’s team described the issuance of bonds in euros as a historical milestone by the Ministry of Finance, which not only ensures resources in favorable conditions, but also took an important step in the task of balanceing public accounts and mitigating immediate risks.
Daniel Hernández Naranjo
Portfolio journalist
