Obligation Colombiana 10.375% ( US195325BB02 ) en USD

Colombiana

117.58 % ▼

Colombie

US195325BB02 ( en USD )

10.375% par an ( paiement semestriel )

27/01/2033

Prospectus brochure de l'obligation Colombia US195325BB02 en USD 10.375%, échéance 27/01/2033

195325BB0

28/07/2025 ( Dans 51 jours )

La Colombie est un pays d'Amérique du Sud caractérisé par une grande diversité géographique, une riche biodiversité, une histoire complexe et une culture vibrante influencée par des populations indigènes, espagnoles et africaines.

L'obligation colombienne (US195325BB02, CUSIP 195325BB0) à 10,375% de taux d'intérêt, échéant le 27 janvier 2033, cotée actuellement à 119,41% de sa valeur nominale en USD, est émise par la République de Colombie.

Prospectus Supplement
424B5 1 d424b5.htm PROSPECTUS SUPPLEMENT
Table of Contents

Filed Pursuant to Rule 424(b)(5)
Registration No. 333-13624

Prospectus Supplement to Prospectus dated June 14, 2001

$500,000,000

Republic of Colombia

10.375% Global Bonds due 2033

We will pay interest on the bonds each January 28 and July 28. The first interest payment will be made on July
28, 2003.

We may not redeem the bonds prior to their maturity on January 28, 2033. There is no sinking fund for the
bonds.

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

Price to Public
Underwriting Discounts
Proceeds to Us, Before Expenses

Per Bond

92.514%
.65%
91.864%
Total
$462,570,000 $
3,250,000 $
459,320,000
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Delivery of the bonds, in book entry form only, will be made on or about January 28, 2003.

Neither the Securities and Exchange Commission nor any other regulatory body has approved or disapproved
of these securities or determined if this prospectus supplement or the accompanying prospectus is truthful or
complete. Any representation to the contrary is a criminal offense.

Joint Lead Managers and Joint Bookrunners

Credit Suisse First Boston

JPMorgan

Co-Managers

Bear, Stearns & Co. Inc.

UBS Warburg

The date of this prospectus supplement is January 21, 2003.
Table of Contents

TABLE OF CONTENTS

Page

PROSPECTUS SUPPLEMENT
ABOUT THIS PROSPECTUS SUPPLEMENT

S-2
INCORPORATION BY REFERENCE

S-2
SUMMARY OF THE OFFERING

S-3
USE OF PROCEEDS

S-4
RECENT DEVELOPMENTS

S-4
Introduction

S-4
Republic of Colombia

S-4
Economy

S-5
Foreign Trade and Balance of Payments

S-6
Monetary System

S-8
Public Sector Finances

S-10
Public Sector Debt

S-12
DESCRIPTION OF THE BONDS

S-14
General Terms of the Bonds

S-14
Payment of Principal and Interest

S-15
Paying Agents and Transfer Agents

S-15
Further Issues

S-15
Notices

S-15
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Registration and Book-Entry System

S-16
Certificated Bonds

S-16
TAXATION

S-17
UNDERWRITING

S-18
GENERAL INFORMATION

S-19
PROSPECTUS
ABOUT THIS PROSPECTUS

2
FORWARD-LOOKING STATEMENTS

2
USE OF PROCEEDS

2
DESCRIPTION OF THE SECURITIES

3
TAXATION

11
PLAN OF DISTRIBUTION

13
OFFICIAL STATEMENTS

14
VALIDITY OF THE SECURITIES

14
AUTHORIZED REPRESENTATIVE

14
WHERE YOU CAN FIND MORE INFORMATION

14

You should rely only on the information contained in or incorporated by reference in this prospectus supplement
and the accompanying prospectus. We have not authorized anyone to provide you with different information. We
are not making an offer of these securities in any state where the offer is not permitted. You should not assume that
the information contained in this prospectus supplement or the accompanying prospectus is accurate as of any date
other than the date on the front of this prospectus supplement.
S-1
Table of Contents

ABOUT THIS PROSPECTUS SUPPLEMENT

You should read this prospectus supplement along with the prospectus attached hereto. 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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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 supplement and any
accompanying prospectus:

· 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 supplement

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 supplement 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 supplement 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-2
Table of Contents

SUMMARY OF THE OFFERING

This summary highlights information contained elsewhere in this prospectus supplement and the prospectus. It is not
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Prospectus Supplement
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.
Aggregate Principal Amount

U.S. $500,000,000.
Issue Price
92.514% of the principal amount of the bonds, plus accrued

interest from January 28, 2003, if any.
Issue Date

January 28, 2003.
Maturity Date

January 28, 2033.
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 January 28, 2003 at the
rate of 10.375% per year. We will pay you interest
semi-annually in arrears on January 28 and July 28 of each

year, commencing on July 28, 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 Amounts
We will make all payments on the bonds without
withholding or 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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Governing Law
New York. The laws of Colombia will govern all matters

relating to authorization and execution by Colombia.

S-3
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USE OF PROCEEDS

The net proceeds of the sale of the bonds will be approximately $459,170,000 after deduction of underwriting discounts
and of certain expenses payable by Colombia estimated at $150,000. 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, and any amendments thereto on Form 18-K/A that are
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, as amended, you should rely on the information in this section.

Introduction

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. Official figures for 2002 have not yet been released, but the ratio of debt to GDP is expected to have exceeded
50% in 2002. Although Congress approved tax, pension and labor reform legislation on December 20, 2002, and the
Government has 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. For a further
discussion of the reforms passed by Congress, see "Public Sector Finances--Recently Enacted Fiscal Reforms."

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 through economic growth incentives. 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.
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.

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

Republic of Colombia

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 also met with leaders of the guerilla group, Ejército de Liberación
Nacional (National Liberation Army, or "ELN"), to discuss a possible cease-fire. 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-4
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Economy

Gross Domestic Product

According to preliminary figures, real GDP growth for the first three quarters of 2002 was approximately 1.6%. The
Government's current official projection for real GDP growth is approximately 1.6% for the full year 2002 and 2.0% for
2003. 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.

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%.

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 the same period:
mining, which contracted by 7.8%; and retail, restaurants and hotels, which contracted by 0.2%.
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Employment and Labor

The following table presents monthly average rates of unemployment in urban areas for January-November 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
October

16.1
November

15.5
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-5
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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 nine months of 2002 was $1,116 million, as compared to a $1,074 million deficit for the first nine
months of 2001. The Government currently expects that the current account deficit for the full year 2002 will be
approximately 1.9% of GDP. The capital account surplus for the first nine months of 2002 was $565 million, as compared
to a $1,500 million surplus for the same period in 2001. This difference was primarily attributable to a decrease in net
foreign direct investment. See "Foreign Trade and Balance of Payments--Foreign Investment."
S-6
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The following table presents preliminary balance of payments figures for 2001, the first nine months of 2001 and the first
nine months of 2002.

Balance of Payments(1)

Jan-Dec
Jan-Sept
Jan-Sept

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

(in millions of U.S. dollars)

Current Account

Exports (FOB)

Oil and its Derivatives

$ 3,285 $ 2,648 $ 2,383
Coffee

764 517 518
Coal

1,179
906 745
Nickel

235 186 197
Gold and emeralds(3)

144 111 136
Nontraditional(4)

6,613 4,914 4,841

Total Exports

12,220 9,281 8,821
Imports (FOB)

Consumer Goods

2,296 1,704 1,813
Intermediate Goods

5,290 4,055 3,948
Capital Goods

4,240 3,205 2,808

Total Imports (FOB)

11,826 8,964 8,569
Special Trade Operations (Net)(5)

116
78
73
Trade Balance

510 395 325
Services (Net) (6)

Inflow

2,198 1,607 1,382
Outflow

3,594 2,619 2,444

(1,396) (1,011) (1,062)
Income (Net) (7)

Inflow

880 683 506
Outflow

3,493 2,677 2,536

(2,613) (1,994) (2,030)
Transfers (Net)

2,085 1,537 1,650

Total Current Account

(1,414) (1,074) (1,116)
Capital Account

Foreign Direct Investment (Net) (8)

2,333 1,810
752
Portfolio Investment (Net) (9)

(119) 158 158
Loans (Net) (10)

(2) (379) (315)
Commercial Credits (Net)

110
76 217
Leasing (Net) (10)

(219) (161) (182)
Other (Net) (10)

158
27
(40)
Other Long Term Financing

(35)
(30)
(26)
Special Capital Flows (Net) (11)

0
0
0
Total Capital Account

2,226 1,500
565
Errors and Omissions

405 159 670

Change in Gross International Reserves

$ 1,217 $ 586 $ 118
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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-7
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Foreign Investment

According to preliminary figures, net foreign investment (consisting of direct and portfolio investment) decreased by
53.8%, from $1,968 million in the first nine months of 2001 to $910 million in the same period of 2002. Net foreign direct
investment decreased by 58.4%, from $1,810 million in the first nine months of 2001 to $752 million in the same period of
2002, due to a reduction in foreign capital inflows to the industrial, financial and communications sectors. Net portfolio
investment amounted to $158 million during the first nine months of 2002, unchanged from the first nine months of 2001.

Monetary System

Financial Sector

Colombia's financial sector had a total gross loan portfolio of Ps. 49.5 trillion at November 30, 2002, as compared to Ps.
47.7 trillion at December 31, 2001 and Ps. 47.3 trillion at December 31, 2000. Past-due loans amounted to Ps. 4.6 trillion
at November 30, 2002, consistent with the same amount of Ps. 4.6 trillion at December 31, 2001 and as compared to Ps.
5.2 trillion at December 31, 2000. As a percentage of total loans, past-due loans fell from 11.0% at December 31, 2000 to
9.7% at December 31, 2001 and further decreased to 9.3% at November 30, 2002. The provisions covering past-due loans
increased from 55.6% at December 31, 2000 to 77.5% at December 31, 2001 and to 81.5% at November 30, 2002.

On January 14, 2003, a reform of the financial institutions law was enacted. The principal objectives of this legislation are
to improve the regulation of banks and to introduce mechanisms to better protect depositors. No assurance can be given,
however, that it will achieve these objectives.

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

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