Obligation Colombia 10.75% ( US195325BA29 ) en USD

Colombia

100 % ▲

Colombie

US195325BA29 ( en USD )

10.75% par an ( paiement semestriel )

15/01/2013 - Obligation échue

Prospectus brochure de l'obligation Colombia US195325BA29 en USD 10.75%, échue

100 000 USD

750 000 000 USD

195325BA2

L'Obligation émise par Colombia ( Colombie ) , en USD, avec le code ISIN US195325BA29, paye un coupon de 10.75% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 15/01/2013

FORM 424B5
424B5 1 d424b5.htm FORM 424B5

FILED PURSUANT TO RULE 424(B)(5)
FILE NO. 333-13172
333-13624

Prospectus Supplement to Prospectus dated June 14, 2001.

$500,000,000

Republic of Colombia

10.75% Global Bonds due 2013

We will pay interest on the bonds on January 15 and July 15 of each year. The first such payment will be made
on July 15, 2003. The bonds will mature on January 15, 2013. The bonds will be issued only in denominations
of $1,000 and integral multiples of $1,000. The bonds will not be redeemable prior to maturity and will not be
entitled to the benefit of any sinking fund.

The listing agent, on behalf of Colombia, has applied to have the bonds listed on the Luxembourg Stock
Exchange.

Neither the Securities and Exchange Commission nor any other regulatory body has approved or
disapproved of these securities or passed upon the accuracy or adequacy of this prospectus
supplement or the accompanying prospectus. Any representation to the contrary is a criminal offense.

Per Bond
Total

Initial public offering price
97.52% $487,600,000
Underwriting discount

0.40% $ 2,000,000
Proceeds, before expenses, to the Republic
97.12% $485,600,000

The initial public offering price set forth above does not include accrued interest, if any. Interest on the bonds
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FORM 424B5
will accrue from December 9, 2002 and must be paid by the purchaser if the bonds are delivered after
December 9, 2002.

The Underwriters expect to deliver the bonds in book-entry form only through the facilities of The Depository
Trust Company against payment in New York, NY on December 9, 2002.

Joint Lead Managers and Joint Bookrunners
Deutsche Bank
Goldman, Sachs & Co.
Securities

Prospectus Supplement dated December 2, 2002.

ABOUT THIS PROSPECTUS SUPPLEMENT

You should rely only on the information contained or incorporated by reference in this prospectus supplement
and the accompanying prospectus, all of which should be read together. Colombia has not authorized anyone
to provide you with information different from that contained in this prospectus supplement and the
accompanying prospectus. Colombia is offering to sell the bonds and seeking offers to buy the bonds only in
jurisdictions where offers and sales are permitted.

Colombia is furnishing this prospectus supplement and the prospectus solely for use by prospective investors in
connection with their consideration of a purchase of the bonds and for Luxembourg listing purposes. Colombia
confirms that:

· the information contained in this prospectus supplement and the accompanying prospectus is true and

correct in all material respects and is not misleading;

· it has not omitted other facts the omission of which makes this prospectus supplement and the

accompanying prospectus as a whole misleading; and

· it accepts responsibility for the information it has provided in this prospectus supplement and the

accompanying prospectus.

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FORM 424B5
INCORPORATION BY REFERENCE

The SEC allows Colombia to incorporate by reference some information that Colombia files with the SEC.
Colombia can disclose important information to you by referring you to those documents. The following
documents, which Colombia has filed or will file with the SEC, are considered part of and incorporated by
reference in this prospectus and any accompanying prospectus supplement:

· Colombia's annual report on Form 18-K for the year ended December 31, 2001, filed with the SEC on

September 30, 2002;

· Any amendment on Form 18-K/A to the 2001 annual report filed after the date of this prospectus and

prior to the termination of the offering of the bonds; and

· Each subsequent annual report on Form 18-K and any amendment on Form 18-K/A filed after the date

of this prospectus and prior to the termination of the offering of the bonds.

Later information that Colombia files with the SEC will update and supersede earlier information that it has filed.

Any person receiving a copy of this prospectus may obtain, without charge and upon request, a copy of any of
the above documents (including only the exhibits that are specifically incorporated by reference in them).
Requests for such documents should be directed to:

Dirección General de Crédito Público
Ministerio de Hacienda y Crédito Público
Carrera 7a, No. 6-45, Piso 8
Bogotá D.C., Colombia
Telephone: 57-1-350-9476
Fax: 57-1-350-6206

You may also obtain copies of documents incorporated by reference, free of charge, at the office of the
Luxembourg paying agent and transfer agent specified on the inside back cover of this prospectus supplement.
S-3
SUMMARY OF THE OFFERING

This summary highlights information contained elsewhere in this prospectus supplement and the prospectus. It
is not complete and may not contain all the information that you should consider before investing in the bonds.
You should read the entire prospectus supplement and prospectus carefully.

Issuer
The Republic of Colombia.

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FORM 424B5
Aggregate Principal Amount
U.S. $500,000,000.

Issue Price
97.52% of the principal amount of the bonds, plus accrued interest from
December 9, 2002, if any.

Issue Date
December 9, 2002.

Maturity Date
January 15, 2013.

Form of Securities
We will issue the bonds in the form of one or more registered
global securities without coupons. We will not issue any bonds
in bearer form.

Denominations
We will issue the bonds in denominations of $1,000 and
integral multiples of $1,000.

Interest
The bonds will bear interest from December 9, 2002 at the rate of
10.75% per year. We will pay you interest semi-annually in arrears on
January 15 and July 15 of each year, commencing on July 15, 2003.

Redemption
We may not redeem the bonds before maturity. At
maturity, we will redeem the bonds at par.

Status
The bonds will be direct, general, unconditional, unsecured and
unsubordinated external indebtedness of Colombia and will be backed by
the full faith and credit of Colombia. The bonds will rank equal in right of
payment with all of Colombia's present and future unsecured and
unsubordinated external indebtedness.

Withholding Tax and Additional
We will make all payments on the bonds without withholding or
Amounts
deducting any taxes imposed by Colombia, subject to certain specified
exceptions. For more information, see "Description of the
Securities--Debt Securities--Additional Amounts" on page 4 of the
prospectus.

Further Issues
Colombia may, without your consent, create and issue additional debt
securities having the same terms and conditions as the bonds (or the
same except for the amount of the first interest payment). Colombia
may consolidate the additional debt securities to form a single series
with the outstanding bonds.

Listing
Application has been made to list the bonds on the Luxembourg Stock
Exchange.

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FORM 424B5
Governing Law
New York. The laws of Colombia will govern all matters relating to
authorization and execution by Colombia.

S-4

USE OF PROCEEDS

The net proceeds of the sale of the bonds will be approximately $485,430,000 after deduction of underwriting
discounts and of certain expenses payable by Colombia estimated at $170,000. Colombia will use the proceeds
for the general budgetary purposes of the Government of Colombia including, but not limited to, the refinancing,
repurchase or retirement of external indebtedness.

RECENT DEVELOPMENTS

This section provides information that supplements the information about Colombia corresponding to the
headings below that is included in Colombia's Annual Report on Form 18-K, which is incorporated into this
prospectus supplement by reference. To the extent that the information in this section differs from the
information contained in Colombia's Form 18-K, you should rely on the information in this section.

Republic of Colombia

Colombia's ratio of debt to gross domestic product ("GDP") increased from 39.0% in 1999 to 45.1% in 2000 and
to 47.7% in 2001. It is expected to exceed 50% in 2002. Although the Government has passed legislation, and
proposed additional legislation, to reduce Government expenditures, the debt to GDP ratio is expected to
continue to increase due to slowing economic growth and the current level of Government spending.

On November 16, 2002, President Uribe's administration announced its intention to propose to Congress a
four-year national development plan entitled "Hacia un Estado Comunitario" (Towards a Communitarian State).
The proposed plan, which is currently in draft form and subject to change, seeks to increase annual real GDP
growth and reduce the unemployment rate and the public sector deficit. The proposed plan calls for total
expenditures of Ps. 108 trillion, Ps. 65.7 trillion of which would be spent on social programs, including an
education initiative which seeks to integrate 1.5 million new students into the school system. Of the remainder,
Ps. 27.6 trillion would be spent on infrastructure improvements and Ps. 3.2 trillion would be spent to buy
equipment for the armed forces. Moreover, as part of its goal to reduce the fiscal deficit and modernize the
State, the plan calls for the Government to trim the public workforce by an estimated 40,000 employees. The
Government's development plan has not yet been submitted to Congress and no assurances can be given that
it will be adopted in the form proposed by the Government, if at all, or that it will achieve its stated objectives.

No assurances can be given that the Government will achieve the desired increase in GDP growth or that it will
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FORM 424B5
meet the goals set by the development plan without incurring additional indebtedness, each of which could
result in an even higher ratio of debt to GDP.

Internal Security

Due to continued attacks by rebel groups against the Colombian population, the Government extended the
State of Emergency declared on August 10, 2002 for an additional 90 days, beginning on November 9, 2002.
The Government may extend the State of Emergency for a second 90- day period, but only after Senate
approval.

On November 29, 2002, leaders of the paramilitary group, Autodefensas Unidas de Colombia (Colombian
United Self-Defense Group ("AUC")) announced a unilateral cease-fire beginning on December 1, 2002. AUC
expressed a desire to enter into peace negotiations with the Government and international authorities, and
announced that it would release to UNICEF all child combatants. Government officials have also met with
leaders of the guerilla group, Ejército de Liberación Nacional (National Liberation Army, or "ELN"), to discuss a
possible cease-fire. Peace talks with the ELN were suspended in May 2002. The Government has stated that it
will not begin peace talks with any of Colombia's armed rebel groups unless a unilateral cease-fire is declared.
S-5

Economy

Gross Domestic Product

According to preliminary figures, in the second quarter of 2002 Colombia's GDP increased by 2.2% in real
terms as compared to a 1.8% increase in real terms in the second quarter of 2001. The sectors of the economy
that experienced the largest increases in real growth during the second quarter of 2002 were: building and
construction, which grew by 20.8% (the construction sector as a whole grew by 8.7%); agriculture, livestock,
fishing, forestry and hunting, which grew by 5.4%; financial services, which grew by 4.7%; transportation, which
grew by 3.3%; social services, which grew by 2.9%; and electricity, gas and water, which grew by 2.5%. Two
sectors experienced negative real growth in same period: mining, which contracted by 7.8%; and retail,
restaurants and hotels, which contracted by 0.2%.

According to preliminary figures, in the third quarter of 2002, Colombia's GDP increased by 1.9% in real terms
as compared to a 0.8% increase in real terms in the third quarter of 2001. The sectors of the economy that
experienced the largest increases in real growth during the third quarter of 2002 were: building and
construction, which grew by 18.9% (the construction sector as a whole grew by 6.3%); electricity, gas and
water, which grew by 3.2%; and transportation, which grew by 2.8%. Two sectors experienced negative real
growth in the same period: financial services, which contracted by 11.0%, and mining, which contracted by
10.0%.

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FORM 424B5
The Government's current projection for real GDP growth in 2002 is approximately 1.6%. This and other
assumptions underlying the budget, while believed by the Government to have been reasonable when made,
are subject to revision, and no assurance can be given that these projections will be reached.

Employment and Labor

The following table presents monthly average rates of unemployment in urban areas for January-October 2002,
according to the most recent methodology adopted by the National Administrative Department of Statistics
("DANE").

Monthly Unemployment Rates for the 13 Largest Urban Areas(1)

2002

January
20.4%
February
18.8
March
17.7
April
18.3
May
17.5
June
18.0
July
18.3
August
18.1
September
17.2
1:

Statistics for the cities and metropolitan areas of Bogotá, Medellín, Cali, Barranquilla, Bucaramanga, Manizales, Pasto, Pereira, Cúcuta,
Ibagué, Montería, Cartagena and Villavicencio.

Source: DANE.
S-6

Foreign Trade and Balance of Payments

Balance of Payments

According to preliminary figures from Banco de la República, Colombia's central bank, Colombia's current
account deficit for the first half of 2002 was $828 million, as compared to a $1,025 million deficit for the first half
of 2001. The capital account surplus for the first half of 2002 was $491 million as compared to a $1,520 million
surplus for the first half of 2001. This difference is primarily attributable to a decrease in net portfolio
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FORM 424B5
investment. See "Foreign Trade and Balance of Payments--Foreign Investment."
S-7

The following table presents preliminary balance of payments figures for 2001, the first half of 2001 and the first
half of 2002.

Balance of Payments(1)

Jan-Dec
Jan-June
Jan-June

2001(2)
2001(2)
2002(2)

(in millions of U.S. dollars)

Current Account

Exports (FOB)

Oil and its Derivatives

$ 3,285 $ 1,687 $ 1,548
Coffee

764
369
360
Coal

1,179
646
532
Nickel

235
132
117
Gold and emeralds(3)

144
75
76
Nontraditional(4)

6,613 3,154 3,200

Total Exports

12,220 6,062 5,833
Imports (FOB)

Consumer Goods

2,296 1,101 1,160
Intermediate Goods

5,290 2,704 2,546
Capital Goods

4,240 2,233 1,861

Total Imports (FOB)

11,826 6,037 5,567
Special Trade Operations (Net)(5)

117
48
25
Trade Balance

510
73
290
Services (Net)(6)

Inflow

2,194 1,051
859
Outflow

3,577 1,700 1,564

(1,383) (649) (705)
Income (Net)(7)

Inflow

762
405
311
Outflow

3,512 1,862 1,672

(2,750) (1,458) (1,361)
Transfers (Net)

2,085 1,009
948

Total Current Account

(1,538) (1,025) (828)
Capital Account

Foreign Direct Investment (Net)(8)

2,386 1,393 1,247
Portfolio Investment (Net)(9)

(120)
600 (351)
Loans (Net)(10)

366 (546) (405)
Commercial Credits (Net)

122
142
115
Leasing (Net)(10)

(169)
(59) (123)
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FORM 424B5
Other (Net)(10)

46
(6)
7
Other Long Term Financing

(35)
(5)
0
Special Capital Flows (Net)(11)

0
0
0
Total Capital Account

2,594 1,520
491
Errors and Omissions

162 (107)
675

Change in Gross International Reserves

$ 1,218 $ 388 $ 364

Totals may differ due to rounding.
1: Figures for all periods calculated according to the recommendations contained in the 5th edition of the
IMF's Balance of Payments Manual.
2:

Preliminary.
3:
Includes gold exports made by private agents (including an estimate of contraband gold transactions).
4:
Nontraditional exports consist of products other than oil and its derivatives, coffee, coal, nickel, gold and
emeralds.
5:

Principally goods acquired by ships in ports and foreign trade in free trade zones.
6: Includes non-financial services, such as transportation, travel, telecommunications, postal, construction,
insurance, information, personal and government services as well as commissions paid by the public and
private sector on financial services relating to managing external debt.
7:
Includes financial services and inflows and outflows related to payments for and costs of labor and
capital. Financial service outflows include interest payments on private and public external debt and
securities, dividend remittances abroad, salaries received by Colombian citizens abroad and interest
earnings on assets held by Colombian residents abroad.
8:
Foreign direct investment in Colombia less Colombian direct investment abroad (outflows). Includes
long-term and short-term foreign direct investment.
9:
Portfolio investment in Colombia less Colombian portfolio investment abroad (outflows). Includes
long-term and short-term portfolio investment flows.
10:

Includes long-term and short-term flows.
11:
As calculated with the new balance of payments methodology, these amounts are not substantial
enough to be material. Excludes portfolio investment flows.
Source: Banco de la República -- Economic Studies.
S-8

Foreign Investment

According to preliminary figures, net foreign investment (consisting of direct and portfolio investment)
decreased by 55.0%, from $1,993 million in the first half of 2001 to $896 million in the first half of 2002. Net
portfolio investment decreased by 158.5%, from an inflow of $600 million in the first half of 2001 to an outflow of
$351 million in the same period of 2002. The decreases in net foreign investment and net portfolio investment
can be attributed to the low exchange rate of the peso against the dollar in the first quarter of 2002 and to the
low interest rates on short-term deposits abroad which prompted local investors to prepay external debt and
reallocate their investments. Net foreign direct investment decreased by 10.5%, from $1,393 million in the first
half of 2001 to $1,247 million in the same period of 2002, due to a reduction in foreign capital inflows to the
industrial, financial and communications sectors.

Monetary System
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FORM 424B5

Financial Sector

Colombia's financial sector had a total gross loan portfolio of Ps. 49.5 trillion at September 30, 2002, as
compared to Ps. 48.1 trillion at December 31, 2001 and Ps. 47.9 trillion at December 31, 2000. Past-due loans
amounted to Ps. 4.7 trillion at September 30, 2002, consistent with the same amount of Ps. 4.7 trillion at
December 31, 2001 and as compared to Ps. 5.3 trillion at December 31, 2000. As a percentage of total loans,
past-due loans fell from 11.1% at December 31, 2000 to 9.8% at December 31, 2001 and further decreased to
9.6% at September 30, 2002. The provisions covering past-due loans increased from 55.9% at December 31,
2000 to 73.9% at December 31, 2001 and to 79.6% at September 30, 2002.

The following table shows the results of the financial sector as of, and for the nine-month period ended
September 30, 2002.

Selected Financial Sector Indicators
(in millions of pesos as of, and for the eight months ended, September 30, 2002)

Assets
Liabilities
Net Worth
Earnings/(Losses)

Private Sector Institutions
Ps. 70,176,601
Ps. 61,988,229
Ps. 8,188,372
Ps. 560,254
Cooperatives

58,048
52,641
5,407
168
State-Owned
Institutions(1)

35,843,305
28,464,390
7,378,915
604,867

Total

Ps. 106,077,954
Ps. 90,505,260
Ps. 15,572,694
Ps. 1,165,289

Totals may differ due to rounding.
1:

Includes Special Financing Institutions.
Source: Superintendency of Banks.

Interest Rates and Inflation

Preliminary 2002 data indicates that the average short-term composite reference rate (depósitos a término fijo,
or "DTF") was 7.9% in October 2002, as compared to 11.4% in December 2001 and 11.4% in October 2001.

Consumer inflation (as measured by the change in the consumer price index, or "CPI") for the twelve months
ended October 31, 2002 was 6.4%, as compared to 8.0% for the twelve months ended October 31, 2001 and
7.7% for the twelve months ended December 31, 2001.

Producer price inflation (as measured by the change in the producer price index, or "PPI") for the twelve
months ended October 31, 2002 was 8.9%, as compared to 7.6% for the twelve months ended October 31,
2001 and 6.9% for the twelve months ended December 31, 2001.
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Document Outline

Local Disk
- #1">FORM 424B5