Operational and Services External Circular DEFI-501, Subject 4: Rules Applicable to Mandatory Investments in Agricultural Development Bonds and Their Substitutive Placements

Document No: OT/PF/JUN/2026/140155
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Recipient: Credit Institutions, Superintendencia Financiera de Colombia, Principal Office and Branches of the Bank of the Republic.
Subject 4: Rules applicable to mandatory investments in Agricultural Development Bonds and their substitutive placements pursuant to Articles 220 and 221 of Law 2294 of 2023 and Article 9 of Legislative Decree 0175 of February 24, 2026

The following Operational and Services External Circular DEFI-501 presents Subject 4: “RULES APPLICABLE TO MANDATORY INVESTMENTS IN AGRICULTURAL DEVELOPMENT BONDS AND THEIR SUBSTITUTIVE PLACEMENTS PURSUANT TO ARTICLES 220 AND 221 OF LAW 2294 OF 2023 AND ARTICLE 9 OF LEGISLATIVE DECREE 0175 OF FEBRUARY 24, 2026”, which will form part of the Corporate Manual of the Financial Stability Department.

This circular aims to compile the rules applicable to mandatory investments in Agricultural Development Bonds and their substitutive placements provided for in External Resolution 3 of 2000 of the Board of Directors of the Bank of the Republic and its modifications, taking into account the provisions of Articles 220 and 221 of Law 2294 of 2023 and Article 9 of Legislative Decree 0175 of February 24, 2026.

This circular takes effect from its issuance.

Sincerely,

HERNANDO VARGAS HERRERA
Technical Manager
ANDRÉS MURCIA PABÓN
Deputy Manager for Monetary and International Investments

OPERATIONAL AND SERVICES EXTERNAL CIRCULAR DEFI-501 FINANCIAL STABILITY DEPARTMENT Date: Tuesday, June 16, 2026

Document No: OT/PF/JUN/2026/140155
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OPERATIONAL AND SERVICES EXTERNAL CIRCULAR DEFI-501 Date: Tuesday, June 16, 2026 Subject 4: Rules applicable to mandatory investments in Agricultural Development Bonds and their substitutive placements pursuant to Articles 220 and 221 of Law 2294 of 2023 and Article 9 of Legislative Decree 0175 of February 24, 2026

1. Background

• Until the issuance of Law 2294 of 2023, “By which the National Development Plan 2022-2026 'Colombia World Power of Life'” (NDP) is issued, pursuant to Article 112 of the Organic Statute of the Financial System – Decree 663 of 1993 (EOSF), the Board of Directors of the Bank of the Republic (BDBR) had the following functions: (i) determine the conditions for mandatory investment in Agricultural Development Bonds (TDA) issued by the Fund for the Financing of the Agricultural Sector - Finagro, (ii) set the financial conditions of such bonds, and (iii) designate substitutive placements for any mandatory investment provided for by law, or establish alternative mechanisms for compliance, taking into account the destination of the respective investment.

These functions were exercised by the BDBR through External Resolution 3 of 2000 “By which norms are issued regarding mandatory investments in Agricultural Development Bonds and other operations of the Fund for the Financing of the Agricultural Sector - FINAGRO-” and its modifications (E.R. 3 of 2000).

• Articles 4 and 5 of E.R. 3 of 2000 state:
  Article 4. Investments in Agricultural Development Bonds Class A and B. The Investment made pursuant to this resolution must be represented by 50% in Agricultural Development Bonds Class A and 50% in Agricultural Development Bonds Class B.

Article 5. Substitutive Placements. Credit institutions may count as substitutive placements for the fulfillment of their investment requirement the value of the agricultural portfolio granted with own resources that, in addition to meeting the requirements established by the National Agricultural Credit Commission for the rediscount of loans in FINAGRO, is not in default and meets the financial conditions contemplated in this resolution, as follows:

i) Up to 100% of the value of the outstanding portfolio corresponding to loans approved and disbursed between March 27, 1996, and December 31, 2007, excluding loans to small producers referred to in item vi) of this subsection, approved and disbursed from January 1, 2000.

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OPERATIONAL AND SERVICES EXTERNAL CIRCULAR DEFI-501 Date: Tuesday, June 16, 2026 Subject 4: Rules applicable to mandatory investments in Agricultural Development Bonds and their substitutive placements pursuant to Articles 220 and 221 of Law 2294 of 2023 and Article 9 of Legislative Decree 0175 of February 24, 2026

ii) Up to 50% of the value of the outstanding portfolio corresponding to loans approved and disbursed between January 1, 2008, and December 31, 2012, granted to large producers.

iii) Up to 75% of the value of the outstanding portfolio corresponding to loans approved and disbursed between January 1, 2008, and December 31, 2012, granted to medium producers.

iv) Up to 25% of the value of the outstanding portfolio corresponding to loans approved and disbursed from January 1, 2013, granted to large producers.

v) Up to 50% of the value of the outstanding portfolio corresponding to loans approved and disbursed from January 1, 2013, granted to medium producers.

vi) Up to 120% of the value of the outstanding portfolio corresponding to loans approved and disbursed from January 1, 2000, granted to small producers.

vii) Up to 150% of the value of the outstanding portfolio corresponding to loans approved and disbursed from September 1, 2014, granted to small producers.

viii) Up to 150% of the value of the outstanding portfolio corresponding to agricultural and rural microcredits, approved and disbursed from September 1, 2014, whose amount is less than or equal to eight (8) current legal monthly minimum wages, regardless of the producer's rating.

First Paragraph. Small, medium, and large agricultural producers, as well as agricultural and rural microcredits, shall be understood as the persons and operations, respectively, that meet the requirements established by the National Government and the National Agricultural Credit Commission within their competencies.

Second Paragraph. For the purposes of this article, the monthly average of the agricultural portfolio of each calendar quarter shall be taken into account.

Third Paragraph. Agricultural portfolio corresponding to pledge bonds shall not be counted as substitutive agricultural portfolio for the mandatory investment.

Fourth Paragraph. The substitutive placements referred to in this article may be counted for the fulfillment of their investment requirement as follows:

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OPERATIONAL AND SERVICES EXTERNAL CIRCULAR DEFI-501 Date: Tuesday, June 16, 2026 Subject 4: Rules applicable to mandatory investments in Agricultural Development Bonds and their substitutive placements pursuant to Articles 220 and 221 of Law 2294 of 2023 and Article 9 of Legislative Decree 0175 of February 24, 2026

a) The value of the substitutive agricultural portfolio corresponding to loans to medium and large producers may only be deducted from the calculation base of Agricultural Development Bonds - TDA - Class B.

b) The value of the substitutive agricultural portfolio corresponding to loans to small producers may only be deducted from the calculation base of Agricultural Development Bonds - TDA - Class A.

c) The value of the substitutive portfolio provided for in item viii) of this article may only be deducted from the calculation base of investments in Agricultural Development Bonds - TDA - Class B.

• Article 112 of the EOSF was modified by Article 221 of Law 2294 of 2023 (NDP), as follows:

Article 112. Investment in agricultural development bonds. Financial entities, in accordance with item 2 of Article 229 of this Statute, must subscribe to “Agricultural Development Bonds” in proportion to the different types of their legal currency liabilities, previously deducting the reserve requirement, as established by general norms by the Board of Directors of the Bank of the Republic, which shall set their terms and interest rates.

In accordance with the Agricultural Credit regulation defined in the law, specifically in Article 219 and item b) of item 2 of Article 218 of this Statute, the Board of Directors of the Bank of the Republic shall determine the maximum amount of substitution of mandatory investments in Agricultural Development Bonds.

This obligation shall not extend to banks that are part of the National Agricultural Credit System.

• For its part, Article 220 of Law 2294 of 2023 (NDP) added the following function to the National Agricultural Credit Commission (CNCA):

Article 220. Item 1 is modified and item r) is added to item 2 of Article 218 of Decree-Law 663 of 1993 - Organic Statute of the Financial System, as follows:

[…]

r) Regulate the conditions of the substitutive placements of the mandatory investment in Agricultural Development Bonds, subject to what is provided by the Board of Directors of the Bank of the Republic in development of Article 112 of the Organic Statute of the Financial

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OPERATIONAL AND SERVICES EXTERNAL CIRCULAR DEFI-501 Date: Tuesday, June 16, 2026 Subject 4: Rules applicable to mandatory investments in Agricultural Development Bonds and their substitutive placements pursuant to Articles 220 and 221 of Law 2294 of 2023 and Article 9 of Legislative Decree 0175 of February 24, 2026

System (EOSF) and considering the type of producer or beneficiary, the agricultural activity and term, in accordance with the targeting policies and guidelines established by the Ministry of Agriculture and Rural Development and without having to attend to a predetermined minimum distribution for this effect.

Thus, the CNCA is permanently authorized to modify the weights with which the agricultural portfolio placements by credit institutions can substitute the mandatory investments in TDA, the procedures for their calculation, and the substitution rules applicable by type of bond, taking into account the maximum limit of substitution of the mandatory investment in said bonds.

• Recently, the aforementioned Article 112 of the EOSF was temporarily modified by Article 9 of Legislative Decree 0175 of 2026 (D. Leg. 0175 of 2026). In this way, while this article is in effect:

i. Paragraph 1 of Article 112 of the EOSF states that “[f]or the case of credits granted, credit institutions shall count as substitutive placements for the fulfillment of their investment requirement, twenty percent (20%) of the value of the agricultural portfolio granted with own resources that, in addition to meeting the requirements established by the National Agricultural Credit Commission (CNCA), is not in default and is destined for primary production, value addition, transformation and/or for productive schemes with a value chain or territorial focus that involve small and medium producers.” Additionally, Paragraph 2 of the same article states that “[t]he other operations that do not meet these criteria will not be taken into account as substitutive operations.”

ii. Paragraph 5 of Article 112 of the EOSF provides that the investment made in TDA “(…) must be represented by 60% in Agricultural Development Bonds Class A; and 40% in Agricultural Development Bonds Class B.”

In accordance with the above, Paragraphs 1 and 5 of Article 112 of the EOSF, modified by Article 9 of D. Leg. 0175 of 2026, suspended the application of Article 5 “Substitutive Placements” (partially) and Article 4 “Investments in Agricultural Development Bonds Classes A and B”, respectively, of E.R. 3 of 2000 during the validity of the aforementioned legislative decree. However, pursuant to Article 220 of Law 2294 of 2023 (NDP), the CNCA remains permanently authorized to regulate the conditions of the substitutive placements of the mandatory investment in TDA.

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OPERATIONAL AND SERVICES EXTERNAL CIRCULAR DEFI-501 Date: Tuesday, June 16, 2026 Subject 4: Rules applicable to mandatory investments in Agricultural Development Bonds and their substitutive placements pursuant to Articles 220 and 221 of Law 2294 of 2023 and Article 9 of Legislative Decree 0175 of February 24, 2026

2. Investment Requirement for Agricultural Development Bonds Class A and Class B

The investment requirement must be represented by 60% in Agricultural Development Bonds Class A and 40% in Agricultural Development Bonds Class B, as defined in Paragraph 5 of Article 112 of the EOSF, modified by Article 9 of D. Leg. 0175 of 2026, for the term of validity of said norm.

3. Maximum Substitution Limit and Weights of Substitutive Placements of the Mandatory Investment in Agricultural Development Bonds

The maximum amount of substitution of the mandatory investment in TDA is 20% of the value of the agricultural portfolio granted with own resources that, in addition to meeting the requirements established by the CNCA, is not in default and is destined for primary production, value addition, transformation and/or for productive schemes with a value chain or territorial focus that involve small and medium producers, as defined in Paragraph 1 of Article 112 of the EOSF, modified by Article 9 of D. Leg. 0175 of 2026, for the term of validity of said norm.

While the CNCA, in development of item r) of item 2 of Article 218 of the EOSF, added by Article 220 of Law 2294 of 2023 (NDP), provides modifications to the following rules of Article 5 of E.R. 3 of 2000, these continue to apply:

a) Items (i to viii) of the first subsection that establish the substitution weights of the agricultural portfolio. b) The first paragraph that defines small, medium, and large agricultural producers, as well as agricultural and rural microcredits. c) The second paragraph that establishes the calculation methodology for substitutive placements. d) The third paragraph that excludes pledge bonds from the calculation of the substitutive agricultural portfolio. e) The fourth paragraph that establishes the substitution rules applicable according to the class of TDA.