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Arnold & Porter Advises Colombia in Landmark $2.5 Billion Social Bond Offering

November 16, 2023

Arnold & Porter has advised the Republic of Colombia on its historic first issuance of social bonds in the international capital markets, valued at US$2.5 billion. The offering included two separate Global Bonds:

  • US$1.25 billion 8.000% Global Bonds due 2035, and
  • US$1.25 billion 8.750% Global Bonds due 2053

Colombia will allocate an amount equal to the net proceeds of the offering to eligible social expenditures, under the Republic’s Green, Social and Sustainable Bond Framework, which is aligned with ICMA’s Green Bond Principles.

The offering was registered with the Securities and Exchange Commission and the bonds will be listed on the Green Exchange (LGX) of the Luxembourg Stock Exchange. This significant transaction, which closed on November 14, 2023, aligns with the Republic's agenda of reforming the labor, pension, and health sectors and demonstrates investor confidence in its economic management and commitment to utilizing public debt to advance social goals.

The Arnold & Porter team included partner and co-head of Arnold & Porter’s Sovereign Finance practice Greg Harrington, counsel Carlos Pelaez and Arturo Caraballo, and associates Mateo Morris and Valentina Garzon, while partners Simon Firth advised on matters of English law and partners David Sausen and William Needle and associate Lauren Hoepfner advised on matters of U.S. taxation.