Colombian green, benchmark bonds likely this year -finance minister

WASHINGTON, April 14 (Reuters) – Colombia is trying to difficulty a inexperienced bond earlier than the top of 2023, seemingly in {dollars}, and will faucet conventional credit score markets once more this yr if borrowing prices fall, Finance Minister Jose Antonio Ocampo mentioned on Friday.

He mentioned the quantities weren’t set but, however that the inexperienced bond could be smaller than a $2.2 billion benchmark issuance from his authorities earlier this yr.

“We do not want extra financing for 2023. Al 2023 amortizations are lined, and even a part of subsequent yr’s. We do not want it, but it surely could possibly be handy,” he mentioned in Washington on the sidelines of the Worldwide Financial Fund and World Financial institution spring conferences.

Ocampo mentioned “when rates of interest come down” could be a very good time to market new bonds, seemingly within the second half of this yr, aiming for yields to be beneath the 7.5% of the latest issuance.

“We’re pondering inexperienced and social bonds,” he mentioned, “we’re working with the (Inter-American Improvement Financial institution) and the World Financial institution.”

PENSION REFORM

Ocampo mentioned views {that a} pension reform proposed by the federal government might decrease its means to finance itself have been “utterly unsuitable,” as any demand misplaced for native bonds from non-public pension funds could be absorbed by a brand new authorities pension fund.

Beneath the proposal, the federal government’s fund will soak up contributions from as much as 3 times the minimal wage, with staff incomes greater than that in a position to direct the remaining to present non-public funds.

The reform proposes that beginning in 2025, 20% of contributions to the federal government pension fund will go to a financial savings fund that may enhance that proportion progressively each 10 years.

Goldman Sachs mentioned in a March report that the reform offered a major fiscal danger for the federal government’s native financing plan. Non-public pension funds are the most important holders of native public debt, with some $26 billion, or barely greater than 25% of the overall.

Ocampo, rumored to be leaving the federal government of left-leaning President Gustavo Petro, mentioned when requested concerning the length of his time in workplace: “I’ve my public service go away from Columbia College till June of subsequent yr.”

Reporting by Jorgelina do Rosario and Rodrigo Campos; further reporting by Nelson Bocanegra

Our Requirements: The Thomson Reuters Belief Ideas.