NEWS 2007

Bogota Sells Bonds in First Global Sale Since 2001

Bogota, the capital of Colombia, sold the equivalent of $300 million worth of 21-year, peso- denominated bonds in its first offering in international markets in six years. The city paid a lower-than-expected yield of 9.75 percent. Bogota's sale indicates that issuers in South America's fourth-largest economy are taking advantage of an improvement in Colombian credit ratings to tap international markets as local borrowing costs rise. Standard and Poor's and Fitch Ratings raised their ratings to BB+, one level below investment grade, as the economy grew at its fastest pace in three decades and the government trimmed spending. Bogota, Colombia's biggest city and the largest financial and industrial hub in the nation's $150 billion economy, will use the proceeds to build schools and hospitals and to repair roads. Bogota's debt totaled $961 million at the end of last year. The city last sold bonds in international markets in 2001, issuing $100 million of five-year bonds. Citigroup Inc. and Deutsche Bank AG handled the sale. Source: Bloomberg