Colombia's largest bank, Bancolombia SA would be proposing a preferred stock sale amounting to US$2.4 billion during its shareholders meeting to be held on March 4. The proposal by the board of directors needs shareholder approval as the plan entails the sale of 148.2 million preferred shares of stock.

The stock would be sold in several tranches or bulks. The shares can be sold in the local market or in foreign capital markets. The sale would amount to 4.3 trillion Colombian pesos at the preferred share prices in the country's bourse, or about 29,000 Colombian pesos per share.

Bancolombia's most recent acquisition was HSBC Holdings Plc's Panama unit, paying out US$2.1 billion. According to Bancolombia Chief Executive Officer Carlos Yepes, the bank was going into the share sale to comply with new global banking regulations as well as provide funding for its future expansion, such as external capital markets and other local projects.