International Gas Transportation Company (TGI for its acronym in Spanish) issue bonds for $750 millon dollar.
These funds were issued to replace the bond issue of 2007. These bonds were placed for 10 years until 2022 with an interest rate of 5,70% at the end of the placement. This number is very low if we take into account the historical bond placement of colombian companies. This successful bond issue will allow TGI to save $28,5 millon dollars in interest payments per year.
This reflects 3 factors that affect this bond issue: First, investors can take advantage of the international situation that offers low interest rates. Second, the improvement in international credit ratings of colombian companies and the strengh that acquired in the last years, and third: the firms of the emerging countries have great perspectives of growth.
The next international bond issue for a Colombian company will be Davivienda Bonds that for the first time will be issuing international bonds.