(Bloomberg) -- Colombia is holding a $3.64 billion dollar-bond offering, tapping international debt markets for the first time in almost seven months.

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The South American country is selling $2 billion in notes maturing in 2036 and $1.64 billion in bonds due in 2054, according to people familiar with the matter. The transaction is expected to price Monday, said the people, who asked not to be identified discussing a private matter.

The bond sale launched with 12-year and 30-year notes yielding 7.8% and 8.5%, respectively, tighter than initial price talks of 8.15% and 8.8%, the people said.

Citigroup, Itau BBA and SMBC Nikko are handling the deal, according to a filing. Proceeds will be used for general budgetary purposes and to buy back up to all of Colombia’s notes maturing in 2026 and 2027, the filing shows.

Colombia last sold hard-currency bonds in a $1.3 billion transaction in April. This time, it’s borrowing as its congress discusses a proposal to boost central-government transfers to regions, a move that may sharply increase the ratio of debt to gross domestic product.

Colombian assets have been hit over the past few weeks on concerns surrounding the country’s fiscal sustainability, after lawmakers and the Gustavo Petro administration failed to agree on the 2025 budget. The government announced that it was increasing its sales of local currency bonds to finance this year’s expenses.

The country’s finance ministry already made some cuts to this year’s spending in order to stay within the limits of the fiscal rule, a decision that was well received by markets. However, analysts have warned that Colombia’s dire fiscal outlook could eventually hurt debt metrics.

“The downside is that they lost a window of opportunity to sell when Treasury yields dropped in September,” said Andres Pardo, head of LatAm macro strategy at XP Investments.

The extra yield investors demand to hold Colombia’s external debt has climbed to 3.2 percentage points over similarly dated Treasuries, after hovering the lowest levels since 2021 earlier this year.

--With assistance from Oscar Medina.

(Updates with deal launch starting in first paragraph.)

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