Ecopetrol secures a USD 1 billion loan with international banks within the framework of its 2023 refinancing strategy
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Ecopetrol secures a USD 1 billion loan with international banks within the framework of its 2023 refinancing strategy
Dec 20, 2022
Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) informs that, within the framework of its debt management and refinancing program for all 2023 maturities, it has secured a credit agreement totaling USD 1 billion. The Bank of Nova Scotia will provide USD 700 million, while Sumitomo Mitsui Banking Corporation will supply the remaining USD 300 million.
The loan has a term of five (5) years as of the signature date and is subject to the following conditions, among others: (i) principal repayable in four equal semi-annual installments during its last two years, and (ii) a variable interest rate based on the secured overnight financing rate (SOFR) plus 210 basis points payable semi-annually.
The aforementioned loan was authorized by the Ministry of Finance and Public Credit through resolution 3373 of December 19, 2022, following a request submitted by Ecopetrol to execute a foreign public debt management operation that involves:
- Replacing the current loan for the nominal amount of USD 665 million secured on September 20, 2018, as a non-revolving line of credit with Mizuho Bank, Ltd., The Bank of Nova Scotia and Banco Sabadell, authorized by resolution No. 2733 of September 4, 2018; and,
- Make payments on the principal due at maturity of the Cartagena Refinery’s loans borne by Ecopetrol, authorized by resolution No. 4112 of December 7, 2017.
The Company fully complied with all the required internal and external procedures and approvals in this loan acquisition process.
The conditions achieved reflect the confidence the international financial sector has in the Company and its proactive 2023 debt refinancing program.
Bogota D.C., December 20, 2022
