Bogotá, November 7, 2019. Pei, the leading real estate investment vehicle in Colombia, with over COP 6.0 trillion in assets under management, issued its second series of ordinary bonds worth five hundred 1,001,000 pesos (COP 500,000,000,000). With this issuance, Pei has completed a total of 1 trillion pesos in outstanding ordinary bonds.
The offering, which was available in three sub-series – two fixed-rate series with maturities of 5 and 10, and one indexed to the IPC with a maturity of 25 years – achieved excellent results, registering demand for more than 950,644,000 pesos (COP 644,950,000,000), which was more than 1,61 times the amount offered.
The net proceeds from this second issuance of ordinary bonds will be used entirely to replace existing bank debt, as part of a strategy to diversify funding sources and optimize the capital structure of the investment vehicle.
“The high demand for our second issuance of ordinary bonds, particularly from investors who also hold equity securities shares of Pei, is a sign of the growing confidence they have in the management and performance of the company,” said Jairo Alberto Corrales, President of PEI Asset Management, the real estate manager for Pei.
With this second issuance, Pei continued its program of issuing and placing ordinary bonds, after obtaining authorization from the Colombian Financial Superintendency to increase its total capacity to 1.5 trillion pesos.
The second issuance of Pei’s ordinary bonds featured Davivienda as the lead underwriter, with Valores Bancolombia, Alianza Valores, Ultraserfinco, Casa de Bolsa, and Scotiabank Securities acting as co-underwriters. The Pei ordinary bonds have a rating of AA+ from the risk assessment society BRC Standard & Poor’s.
The results of the Dutch auction were as follows:
| SUB – SERIE (PLAZO) | Monto Demandado (COP) | Monto Adjudicado (COP) | Cutting rate (EA) |
| A5 (5 AÑOS) | $ 140,340,000,000 | $ 122,000,000,000 | 6,50% |
| A10 (10 AÑOS) | $ 311,810,000.000 | $ 226,000,000,000 | 7,28% |
| C25 (25 AÑOS) | $ 192,800,000,000 | $ 152,000,000,000 | IPC + 3,79% |
| TOTAL | $644,950,000,000 | $ 500,000,000,000 |
About Pei
The Pei is a real estate investment vehicle that allows investors of equity securities to participate in a diversified portfolio of commercial real estate properties that generate income. The Pei aims to incorporate the key features of well-known international real estate investment vehicles, such as equity Real Estate Investment Trusts (equity REITs). Equity REITs are characterized by allowing anyone to invest in a diversified portfolio of real estate assets that have the potential to generate cash flow from lease agreements and are professionally managed.