Bancolombia SA said it has priced a $750.0 million public offering of subordinated notes set for Oct. 18.

The 10-year notes have an optional redemption right on the fifth year and a coupon of 4.875%, payable semi-annually on April 18 and Oct. 18 of each year, commencing on April 18, 2018, the bank said.

Citigroup Global Markets Inc., Merrill Lynch Pierce Fenner & Smith Inc. and UBS Securities LLC are acting as the joint book-running managers for the offering while Valores Banistmo SA is acting as co-manager.

The bank will use part of the proceeds to acquire a portion of its notes due 2020 and 2022, issued on July 26, 2010, and Sept. 4, 2012, respectively, through a private exchange following a dealer-intermediated tender offer.