Gruposura's International Bond Issuance Obtained an Unprecedented Bid-to-Cover Ratio in Token of the Company's Sound Fundamentals

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MEDELLIN, Colombia, May 12, 2011 /PRNewswire/ -- Gruposura's issuance of senior unsecured bonds for a term of 10 years worth USD 300 million obtained a demand of USD 5.2 billion, for a bid-to-cover ratio of 17.3.

Gruposura's two investment grades, the first issued by Fitch Ratings and the second by Standard & Poor's, provided due backing for these bonds to be placed at a rate of 5.786%, this comparable with major global issues.

The funds obtained from this issuance shall be used to finance the Company's international expansion plans.

Gruposura's sound fundamentals and the international recognition it has been building up over the years were duly validated yesterday with the success enjoyed with its international issuance of bonds totaling USD 300 million. Bids worth USD 5.2 billion were placed, that is to say 17.3 times more than the value offered, which is the largest surplus demand ever recorded in the history of Colombian bond issues.

Mr. David Bojanini Garcia, the Company's CEO, expressed his satisfaction with these results stating "we are very proud of the gratifying results obtained with this issuance, which we interpret as a major vote of confidence in Grupo de Inversiones Suramericana, as well as the companies that form part of our investment portfolio and Colombia as a whole. Today we are considered as one of the most attractive countries to invest in throughout the region".

He also underscored the fact that "this is a magnificent example of how important it is to have an investment grade. We are convinced that this issuance shall pave the way for other Colombian issuers to raise funds on the international debt markets, taking advantage of this excellent moment in time".

GRUPOSURA has been given a BBB- rating along with a stable outlook from both Fitch Ratings and Standard & Poor's, thanks to which it was able to obtain such an excellent rate for this issuance, that is to say 5.786%, placing the Gruposura international bond on a par with major worldwide issuances.

Gruposura Finance, a subsidiary of Grupo de Inversiones Suramericana, was responsible for placing these bonds. Prior to the actual placement, the Company organized a worldwide road show, by means of which its CEO and senior executives were able to meet with a great many investors in London, Santiago de Chile, Boston, Los Angeles and New York.

These 10-year 144-A/Reg S bonds hold a BBB- rating (stable) from Fitch and a BBB- rating (stable) from S&P. These shall become due and payable on May 18, 2021 and coupon payments shall accrue on a half-yearly basis. Bank of America Merrill Lynch and JP Morgan acted as the investment banks for this placement.

The funds obtained from this issuance shall be used to finance the international expansion plans of Grupo de Inversiones Suramericana S.A., either directly or through the companies that make up its portfolio.

With the results obtained today, which complement the historic growth figures posted over the last decade, GRUPOSURA is set to strengthen its international presence as part of its corporate strategy, while remaining one of the most dynamic Colombian companies on the local stock market, this in order to continue creating greater shareholder value as well as contributing to the development and growth of the Colombian economy.

GRUPO DE INVERSIONES SURAMERICANA

Grupo de Inversiones Suramericana is a company listed on the Colombian stock exchange as well as with the ADR- Level 1 program in the United States and the Latibex Market for Latin American Stocks in Euros hosted by the Madrid Stock Exchange. Its portfolio of investments is divided into two main segments: the first is Strategic Investments, comprised of the financial services, insurance and social security sectors as well as complementary services. The second is its Portfolio Investments, mainly in the food and cement sectors

GRUPOSURA is mainly focused on its Strategic Investment segment, playing an active role in the management functions of all its companies with a view to harnessing common synergies, as well as taking full advantage of creating, growing and extending its business

Between 2000 and 2010, GRUPOSURA become one of the most robust companies on the Colombian stock exchange, thanks to results such as the following:

• Shareholders' equity increased 37-fold to reach COP 17.6 billion.
• The average annual weighted growth in shareholders' equity came to 43.5%.
• Assets increased 28-fold, going from COP 600 thousand million to COP 18.2 billion.
• The intrinsic value of the GRUPOSURA share increased 26-fold.
• Its share price rose 31-fold, from COP 1,200 to COP 37,480.
• The average annual weighted growth in net profits came to 36%.

Communications Office, +011-574-4355935, [email protected]; or Investor Relations, Luis Eduardo Martinez, +011-574-4355628, [email protected]

SOURCE Grupo de Inversiones Suramericana