On September 9, 2020, the Colombian Ministry of Finance and Public Credit successfully issued their first 30-year government security (COP 4.8 billion with a 7.25% coupon) in the domestic market through a syndication. Despite the ongoing pandemic, the bond received good reception with a bid to cover ratio of 1,87 and immediately became part of the JP Morgan Emerging Market Global Index.
In this GDRM Program webinar, Cesar Arias, Director of Public Credit and National Treasury, shares Colombia’s experience with public debt managers across the world.
- Colombian government’s objectives for issuing the 30-years government security;
- Which issuance mechanisms the authorities explored before issuing the 30-years domestic syndication;
- How the authorities prepared in terms of determining the size, terms, and conditions of the bond, interacting with market players, and coordinating across Ministry of Finance units;
- How the issuance was executed and received by investors;
- Experiences of other countries;
- How the WB assisted the Colombian authorities under the Government Debt and Risk Management Program in analyzing the benefits and risks of domestic syndications.
The Government Debt and Risk Management (GDRM) Program, a World Bank initiative sponsored by the Swiss State Secretariat for Economic Affairs (SECO), provides customized technical advisory to middle-income countries in a programmatic approach.