Bancolombia S.A. Prices US$ 620 Million of Subordinated Notes

MEDELLIN, Colombia, July 19 /PRNewswire-FirstCall/ -- Bancolombia S.A. (the "Bank") (NYSE: CIB) announces that today it priced the public offering of US$620 million in aggregate principal amount of its Subordinated Notes due July 26, 2020 (the "Notes Offering").

The notes have a 10-year maturity and a coupon of 6.125%, payable semi-annually on January 26 and July 26 of each year, commencing on January 26, 2011. The notes have been rated Baa3 by Moody's and BB+ by Fitch Ratings. The Notes Offering is expected to close on July 26, 2010, subject to customary closing conditions.

Banc of America Securities LLC and J.P. Morgan Securities Inc. are acting as the joint book-running managers for the Notes Offering.

The securities are being offered pursuant to an effective shelf registration statement. Bancolombia has filed a registration statement (including a prospectus and prospectus supplement) with the Securities and Exchange Commission ("SEC") for the Notes Offering. Copies of the preliminary prospectus supplement relating to the offering is available from the SEC's website at: http://www.sec.gov/Archives/edgar/data/1071371/000095012310065273/0000950123-10-065273-index.htm

Proceeds from the offerings will be used one hundred percent (100%) for general corporate purposes, which include carrying out the business of a financial institution in accordance with applicable law.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sales of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

SOURCE Bancolombia, S.A.