BOGOTA, May 5 Reuters Colombia swapped internal public debt worth 2.6 trillion pesos 641 million in April, the second such operation this year and part of an effort to reduce amortizations and improve the country39;s debt profile, its finance ministry said on Thursday.

In the latest operation, the ministry traded TES securities coming due in 2023 for others tied to inflation which come due in 2035 and 2037 and pesodenominated paper coming due in 2042.

The transactions took place at market prices and contribute to an improvement in the profile of Colombia39;s internal public debt, the ministry said in a statement. In particular, the median life of paper was extended from 8.97 years to 9.08 years, while the average coupon fell from 9.10 to 9.08.

The swap did not increase the net indebtedness of the South American country, it added. TES paper is the second most important financing source for Colombia39;s government after tax revenues.

The government swapped 2.3 trillion pesos worth of paper in March and estimates its net public debt will close the year at 62.7 of gross domestic product.

1 4,056.41 Colombian pesos

Reporting by Nelson Bocanegra Writing by Julia Symmes Cobb Editing by Paul Simao

Source Reuters