The first public debt bond issuance made by the district of Barranquilla had a positive result with the placement of $ 394,365 million in series with terms of 5, 10 and 20 years.
In the bonds of the first series, to 5 years, $ 106,080 million were placed with an annual interest rate of 2.09%; in the 10-year series, $ 79,502 million were placed with a rate of 3.10% and in the 20-year series, $ 208,783 million with a rate of 3.98%.
The president of the Colombian stock exchange, Juan Pablo Córdoba, said that the results obtained welcome the District as an issuer and that the capital market and investors will surely accompany the process of growth and economic and social development of the city.
Stood out as something favorable the fact that more than half of the resources placed have a term of 20 years, which indicates that at this time the District will not have to pay capital installments achieving a higher cash flow.
“Barranquilla dares to do things in a better way thinking about the future and the well-being of the community,” he added.
Córdoba said that the capital market and the BVC are allies of the municipalities and departments of Colombia as well as companies for economic recovery in the framework of the pandemic.
“This is the demonstration that the capital market is open to other issuers that are doing things well like Barranquilla and that are willing to place the money and accompany their investment and growth plans,” he added.
The mayor of Barranquilla, Jaime Pumarejo, said in turn that this broadcast opens the possibility for the city to position as a capital with financial and institutional capacity and solidity.
“It is a pride to do this bond issue and to know that we placed almost $ 400 billion as our first issue in the Colombian Stock Exchange market,” he said.
In the process of issuance, $ 500 billion were offered out of a total amount of the issuance of $ 650 thousand, through the Dutch auction system.
“We enter a pedestal on which we compare ourselves in quality standards and institutional framework with large companies in Colombia and we see great confidence from the private and financial sector in the city and we open a new financing window, different from the traditional one of going to the bank ”, said the Barranquilla president.
He explained that by opening this window through the issuance of bonds in the Colombian Stock Exchange, those who want to have this type of paper are reached directly, whether they are institutional buyers of pension funds, private equity funds and investors who buy through brokers.
“What this issuance has done is that it allows us to borrow in the longer term, which is great news, since the development of large countries occurs when they can access capital markets at long terms and low rates and we are achieving that today with this first broadcast”Added Pumarejo.
These resources can be used to increase social investment, have better money management and carry out more works to reduce poverty.
They will be used to finance the Barranquilla Development Plan that seeks to give a short-term boost to the local economy and generate employment in the coming months.
Pumarejo indicated that the District, from now on, will be able to finance itself in a new way and recur to the market when necessary.
“In the middle of a turbulent time like this, the stock market becomes a very attractive option that democratizes and makes debt more dynamic and it gives us an option with good terms and at low rates, “he said.
The issuance of bonds allows the District to have a greater cash flow since it frees resources from debt service, since it can pay with a longer term and with favorable rates.
Lowering the cost of interest means that debt will cost less, what gives a margin of indebtedness in the long term with manageable financial costs.
“Thanks to the institutions and ordinary people who today became members of Barranquilla and not just holders of a bond. Today they bet on a city that does not want to stop and continue to be a light of hope in such a difficult time. You were not wrong, keep believing in us, here they have an institution that pays and pays well. With your vote of confidence we will use the resources to improve the quality of life of many people, ”said Mayor Pumarejo.