Bancolombia S.A. Announces Board of Directors' Decision

MEDELLIN, Colombia, Oct. 27 /PRNewswire-FirstCall/ -- At a meeting held on October 26, 2009, the Board of Directors of Bancolombia S.A. ("Bancolombia") (NYSE: CIB) approved an amount for future issuances of Bonos Ordinarios (the "Ordinary Notes") as follows:

1. The Ordinary Notes may be offered in Colombia in multiple and successive issuances up to an aggregate principal amount of two trillion Colombian pesos (Ps COP$2,000,000,000,000, or approximately USD 1.03 billion).
2. According to the Reglamento de Emision y Colocacion de Multpiles y Sucesivas Emisiones de Bonos Ordinarios (the "Ordinary Notes Terms") to be approved by the Board of Directors, the Ordinary Notes can be issued in multiple series, subject to the financial terms and maximum interest rates set forth therein.
3. The legal representative of Bancolombia (i) may authorize, on behalf of Bancolombia, the issuance of one or more series of Ordinary Notes on the terms and conditions set forth in the Ordinary Notes Terms, (ii) execute and deliver any documents relating to the issuance of Ordinary Notes in accordance with the Ordinary Notes Terms.
   

The timing and amounts of future issuances of Ordinary Notes will depend on market conditions, Bancolombia's funding needs and management of its balance sheet structure. The proceeds from the offerings will be used for general corporate purposes, which may include funding any business or operational transactions available to banking institutions in accordance with the requirements established by applicable law.

SOURCE Bancolombia S.A.