will issue 10-year subordinated bonds worth $250 million on July 19, the bank saidJuly 14.

Demandfor the bonds, which were offeredon domestic and international markets earlier in July, reached $1.26 billion, thebank said. The initial offering was for up to $300 million.

The bondswill pay a fixed annual interest rate of 8.25% for the first five years, after whichthe rate will be adjusted to include an additional margin.

The ratewas better than expected and the success of the issuance was reflected in the strongdemand from investors, which reached more than 5x the amount placed, Cronista reported, citing a statement bythe bank.

BancoGalicia's board approved the issuance in June under its negotiable bond programfor up to $600 million.

The bankpreviously said that the funds will be used to finance a tender offer to purchaseoutstanding subordinated debt due 2019 and to refinance other subordinated loans.

BancoGalicia acted as placing agent in the national market, while Deutsche Bank SecuritiesInc. and J.P. Morgan Securities LLC were the placing agents internationally.