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Glossary

COLTES

Category — Sovereign Bonds
COLTES (Titulo de Tesoreria de Colombia) is a type of government paper, which is Colombian treasury certificates. Coltes are an investment instrument provided by the Ministry of Finance and Public Debt of Colombia (Ministerio de Hacienda y Credito Publico Republica de Colombia) and administered by the Bank of the Republic (Banco De La Republica - Central Bank of Colombia).

COLTES are divided into two classes:

Class A: Certificates of Participation. This class of securities is used to cover debts presented by the Bank of the Republic, and it is also issued to replace debts acquired in the course of open market operations at maturity.

Class B: Treasury certificates of domestic public debt intended to finance appropriations from the General Budget of the Nation.

This type of class B government paper has the following features:

1. A security can be discounted if it’s placed for a period of less than 1 year, or coupon if it’s placed for a period of more than a year. The coupon rate can be either fixed or floating. The coupon payment frequency is once a year.
2. The bond is issued in Colombian pesos (COP), American dollars (USD) or units of real value (UVR). The latter will be placed and paid in Colombian legal currency (COP) using the current value of UVR on the day of application.
3. The face value of securities in COP is 100,000, in USD - 100, in UVR - 1000.
4. The term of circulation varies from 1 year to 30 years. At the same time, the period of circulation of certificates issued in UVR is at least 3 years.

Examples: Columbia, Bonds 3.75% 25feb2037, UVR, Columbia, Bonds 5.75% 3nov2027, COP.
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