Bogotá, November 7, 2019. Pei, the leading real estate investment vehicle in Colombia, with more than COP 6.0 trillion in real estate assets under management, carried out its second Ordinary Bonds issuance for five hundred billion pesos (COP 500,000,000,000). With this issuance, Pei reaches a total of 1 trillion pesos in Ordinary Bonds placed.
The issuance, offered in three sub-series — two at fixed rates with 5- and 10-year terms, and one CPI-indexed with a 25-year term — achieved excellent results, recording demand of more than six hundred forty-four billion nine hundred fifty million pesos (COP 644,950,000,000), exceeding the offered amount by 1.61 times.
The net proceeds from this second Ordinary Bonds issuance will be used entirely to replace bank financial debt, as part of a strategy to diversify funding sources and optimize the investment vehicle’s capital structure.
“Achieving this level of demand in our second Ordinary Bonds issuance, particularly from investors who are also holders of Pei’s Equity Securities, is a sign of the growing market confidence generated by the vehicle’s management and results,” said Jairo Alberto Corrales, President of PEI Asset Management, Pei’s real estate manager.
With this second issuance, Pei continued its Ordinary Bonds Issuance and Placement Program, after obtaining authorization from the Superintendencia Financiera de Colombia to expand its total limit to 1.5 trillion pesos.
Pei’s second Ordinary Bonds issuance was carried out with Corredores Davivienda as Lead Placement Agent. Placement agents also included Valores Bancolombia, Alianza Valores, Ultraserfinco, Casa de Bolsa, and Scotiabank Securities. Pei’s Ordinary Bonds carry an AA+ rating from the risk rating agency BRC Standard & Poor’s.
The results of the Dutch auction allocation were as follows:
| SUB-SERIES (TERM) | Amount Demanded (COP) | Amount Allocated (COP) | Cutoff Rate (E.A.) |
| A5 (5 YEARS) | $ 140,340,000,000 | $ 122,000,000,000 | 6.50% |
| A10 (10 YEARS) | $ 311,810,000.000 | $ 226,000,000,000 | 7.28% |
| C25 (25 YEARS) | $ 192,800,000,000 | $ 152,000,000,000 | CPI + 3.79% |
| TOTAL | $644,950,000,000 | $ 500,000,000,000 |
About Pei
Pei is a real estate investment vehicle that allows equity securities investors to become part of a diversified portfolio of income-generating commercial properties. Pei seeks to incorporate the main characteristics of real estate investment vehicles known in international markets as equity Real Estate Investment Trusts (equity REITs). Equity REITs allow anyone to invest in a diversified portfolio of real estate assets capable of generating cash flow from lease contracts and that are professionally managed.