SABMiller's Colombian division, Bavaria, has set up a US$1.3bn bond and commercial paper programme.

The London-based brewer, which acquired Bavaria back in 2005, confirmed yesterday (29 March) that the COP2.5trn (US$1.325bn) programme will be used primarily to refinance Bavaria's existing COP1.910trn bonds by means of an exchange offer. Bondholders will be offered new securities in exchange for existing bonds.

The programme will also be available “to fund working capital and for other purposes”, SABMiller added.

Bonds and commercial paper issued under the programme will be registered for trading in the secondary market of the Colombian Stock Exchange – the Bolsa de Valores de Colombia - and admitted to the official list of the Cayman Islands Stock Exchange.

To read the official release, in Spanish, click here.