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Capital Market

The Capital Market area structures debt securities issuances in the local capital market, incorporating risk mitigation products that allow the financing of projects and companies that traditionally do not resort to this source of resources

The structuring process starts with the identification of the specific need of each project and/or company, and the risks associated with an issuance in the local capital market, such as liquidity risk or placement risk. Products such as underwritings, guarantees and facilities are then developed and incorporated, which allow mitigating these risks.

Likewise, the Capital Market area seeks (i) to promote regulatory changes that allow expanding the base of investors and issuances, (ii) to contribute to the promotion and financial education of the Colombian capital market through the participation in forums and events, (iii) to be a benchmark as to Corporate Governance standards for issuances.

Products

  • Guaranteed Underwriting and Investment Commitment: FDN’s commitment to acquire the unplaced remnant of a securities issuance, mitigating, in this way, the placement risk and making it viable to develop new issuances, especially non-traditional issuances and with different levels of credit risk.
  • Partial Guarantee: Guarantee payable on first demand, irrevocable and unconditional, which supports the timely payment of the obligations of a bond issuer, improving its credit profile and making access to new financing sources viable through the capital market.
  • Liquidity and Multipurpose Facility: Additional source of liquidity over the life of the bond, which allows covering cash shortfalls for the payment of the debt service of a bond issuance.