July 9, 2020 / 3:21 PM / a month ago

Telefonica's Colombia unit raises $500 mln in bonds

BOGOTA, July 9 (Reuters) - Coltel, a Colombian unit of Spanish telecommunications company Telefonica, on Wednesday issued $500 million in bonds to international markets in an oversubscribed placing with proceeds earmarked for substituting debt, the company said Thursday.

Coltel issued 10-year bonds with a yield of 4.95% after receiving orders for $3.5 billion.

The funds will replace senior bonds issued by Coltel on Sept. 27, 2012.

“The resources from this placement will allow the company to advance in the process of substituting financial liabilities and improve its maturity profile, after also achieving very favorable conditions,” Telefonica Colombia’s director of finance management Elena Maestre said in a statement.

Coltel, in which Colombia’s government holds a minority stake, operates in the Andean country under the brand Movistar. It offers telephone and mobile services, fiber optic internet connections for homes and digital solutions for businesses, among others.

The paper received investment grade ratings of BBB- and BB+ from agencies Fitch Ratings and Standard & Poor’s respectively. (Reporting by Nelson Bocanegra Writing by Oliver Griffin Editing by Nick Zieminski)

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