DAVIVIENDA PLACED ALL THE BONDS IN THE EU AND USA

DAVIVIENDA PLACED ALL THE BONDS IN THE EU AND USA

The international markets are trying to structure their portfolios of investment differently than they have been doing it.

The uncertainty generated by the performance of the finance sector and the industrial sector in the industrialized economies like the European Union and the United States, also due to the deceleration of the Chinese and Brazilian economy; economies of countries like Colombia are being viewed favorably by investors, and if it is about fixed income assets even more.

This is why the three bond issuances of Colombian companies have been as successful as they were. The Colombian companies are issuing bonds in the international markets and are having a great success due to the strength of the Colombian economy and the great performance of its financial system; the bonds issued by the banks are being sold like warm bread in the stock exchange markets all over the world.

This was the case of Davivienda which placed all its bond issuance into the portfolio of 190 investors of the United States and the European Union for a value of 500.000 million dollars with a very low interest rate, which is around the 5.95% with an expiration of 10 years. The only risk that the bank is taking is if the exchange rate between the COP$ and the dollar present in the future a drastic change, but if not, they got a lot of capital with a very low interest rate, which will allow the bank to continue with the expansion of its business in the mortgage credit line.