Bogotá, november 2020. From 2015, Pei, the leading real estate investment vehicle in the country, managed by Pei Asset Management S.A.S., has authorization from the Superintendencia Financiera de Colombia (SFC) to issue one or more Ordinary Bonds through a public offering using its existing Ordinary Bond Issuance and Placement Program. This program initially had an authorized global capacity of COP 500.000.000.000, which was later expanded to COP 1.500.000.000.000 in 2019.
Through the two issuances of Ordinary Bonds in 2018 and 2019, each by COP 500.000.000.000, with oversubscriptions of 1.9x in the issuance of 2018 and 1.6x in 2019, the PEI has structured a well-received maturity curve that diversifies its funding sources and conditions. The maturities of the short-, medium-, and long-term series issued range from 3 to 25 years, aligning the debt’s maturity with the expiration dates of contracts.
In line with its goal of incorporating sustainable and responsible investment practices into its securities offerings, the 23 issued on September 2020 obtained authorization from the SFC to modify its Issuance and Placement Program to include the possibility of issuing Green Bonds and integrating Commercial Papers as new securities to be issued within its overall allocation. Based on this modification, the PEI’s Issuance and Placement Program for Credit Securities now has a diverse range of different securities, financial conditions, and placement terms to manage its capital structure.
Green Bonds are a type of Ordinary Bond whose proceeds from their issuance are exclusively used to finance or refinance, in whole or in part, eligible green projects, whether new or existing. In addition to the above, Green Bonds must comply with the standards and principles of the International Capital Market Association, also known as «Green Bond Principles».
Commercial papers are credit instruments with maturities (from the date of issuance to the maturity date) less than one year, secured by all assets of the issuer, present or future, and without giving rise to any particular lien that would provide them with special priority over other creditors.
One of the advantages of having an Emission and Placement Program is the ability to take advantage of potential liquidity windows in the stock market within a specific timeframe. According to Jairo Corrales, President of Pei Asset Management S.A.S.: «Access to financing through the capital markets has been a very valuable tool for optimizing Pei’s capital structure. This increase in capacity and the inclusion of green bonds and commercial papers will allow us to continue taking advantage of opportunities to access this type of credit aligned with our sustainability goals and associated with our business model.»