Nation To Auction Green Bonds In Local Market Sept. 29

Colombia public credit director Cesar Arias speaks in interview:

• Colombia will carry out its first auction of green bonds on Sept. 29 in an initial 500 billion peso-offering which may increase by as much as 50% depending on demand. (Bloomberg)
  • The bonds, known as green TES, will have a 10-year maturity and act as a "twin" to the nation's peso debt due 2031, given they'll be subject to the same local regulations
  • A second auction later this year will likely be enough to raise close to 2 trillion pesos ($527 million) to fund projects including water management, clean transport and renewable energy
  • Nation decided to sell green bonds in Colombia to help create a local market for the securities from other issuers, as well as a way to reduce currency risk
  • The finance ministry plans for the sale of green TES to be recurring
• Colombia still has between $750m and $1 billion remaining of planned overseas debt offerings for this year
  • "We will be very tactical in the remainder of the year, fortunately markets have been behaving very positively both locally and internationally", Arias added.