Banco de Bogotá plans sale of $1.2 billion in bonds

Banco de Bogotá, Colombia's second largest bank by assets, secured approval from its board of director to launch a bond issue for $1.22 billion, a move that appears geared to raise cash for a recent expansion in Central America.

The bank said on Sept. 17 that it planned to raise $1.45 billion to finance the acquisition of Central America's bank BAC-Credomatic. Banco de Bogotá announced in July it agreed to buy BAC-Credomatic for $1.9 billion from the financial arm of US conglomerate General Electric (GE).

Banco de Bogotá is controlled by Grupo Aval, which is owned by Colombia's second-wealthiest man, Luis Carlos Sarmiento.

Original source: Dow Jones