Bancolombia’s $750 Million Offering and Related Liability Management Transaction

October 11, 2017

Cleary Gottlieb represented the underwriters and dealer managers Citi, BofA Merrill Lynch and UBS in an SEC-registered public offering and related liability management transaction by Bancolombia S.A.

Bancolombia S.A. offered $750 million 4.875 percent subordinated notes due 2027. This is the first ever Basel III-compliant subordinated note issued by a Colombian bank. The issuance priced on October 11, 2017, and is expected to close on October 18, 2017.

The related liability management transaction consisted of an offer to purchase for cash up to $750 million aggregate total consideration for Bancolombia’s outstanding 5.125 percent notes due 2020 and 5.125 percent notes due 2022, which was made by Citi, as tender offer structuring advisor and purchaser. The tender offer established a waterfall feature giving priority to the repurchase of certain series of old notes over others. The tender offer was oversubscribed as of the early tender date, which is expected to settle on October 13, 2017, and the final expiration of tender offer is scheduled to occur on October 24, 2017.

Bancolombia S.A. is a full-service financial institution that offers a wide range of banking products and services to a diversified individual and corporate customer base of nearly 11 million customers.