Colombia's Grupo Grupo de Inversiones Suramericana Plans Bond Sale -Source

Colombia's largest holding company, Grupo de Inversiones Suramericana SA (GIVSY, GRUPOSURA.BO), plans to raise some $300 million by selling dollar-denominated bonds, said a source Friday, who added that the exact amount of the sale remains preliminary.

The bonds would be for 10 years, the source said, adding that they will be rated BBB-. The issuer is Gruposura Finance and the bookrunners are Bank of America Corp. (BAC) and J.P. Morgan Chase & Co. (JPM), the source said.

Grupo Suramericana controls the country's largest insurance firm, Suramericana SA, and holds large stakes in the country's largest bank, Bancolombia SA (CIB, BCOLOMBIA.BO); the country's largest food company, Grupo Nutresa SA (NUTRESA.BO); and Colombia's largest cement company, Cementos Argos SA (CEMARGOS.BO).

The source didn't provide further details about the bond sale and officials at the company weren't available to comment on what the money would be used for.

However, local press reports have indicated torrential rains over the past year in Colombia, which have caused massive flooding and homelessness, are becoming very costly for insurance firms.

-By Dan Molinski, Dow Jones Newswires; 57-310-867-6542; [e-mail]