Ecopetrol Prices $500mn Debt Offering

Instant Max AI

(Ecopetrol, 10.Jun.2016) — Ecopetrol S.A. reports that, on 8 June 2016, based on the authorization granted by the Ministry of Finance and Public Credit (Resolution 1657 of 7 June 2016) to subscribe, issue and place External Public Debt Bonds in the international capital markets, it reopened its 2023 Bond for $500mn, with the following results:

  • Maturity Date: 18 September 2023
  • Total Amount Issued: Five hundred million dollars ($500,000,000)
  • Offering Date: 8 June 2016   
  • Settlement Date: 15 June  2016    
  • Credit Rating:   
    • Moody’s Investors Service: Baa3
    • Standard & Poor’s Ratings Services: BBB
    • Fitch Ratings: BBB   
  • Amortization of Principal: Upon maturity    
  • Reopening Price: $101.612 
  • Reopening Yield: 5.600%   
  • Coupon Rate: 5.875%   
  • Interest Payment Dates: 18 September and 18 March, beginning on 18 September 2016

The offering had an order book of $1.7bn or 3.4 times the amount offered and participation of more than 130 institutional investors from the USA, Europe, Asia and Latin America. This transaction ratifies investors’ confidence in the decisions that have been made to face the pricing environment and Ecopetrol’s future.

The resources obtained will be used for general corporate purposes, including the company’s investment plan for the current year. With this operation, the company has achieved financing for 2016 in an amount totaling approximately $1.27bn, covers most of the company’s projected financing needs for 2016.  

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