Ecopetrol Gets Go Ahead For $4bn Loan For ISA Acquisition

(Ecopetrol, 16.Aug.2021) — Ecopetrol S.A. (BVC: ECOPETROL;NYSE: EC) informs that by means of Resolution 1928 of 13 August 2021, the Ministry of Finance and Public Credit (MHCP) authorized the company to enter into an external credit loan with international banks for up to four billion dollars ($4bn), whose exclusive purpose will be to finance the acquisition of 569,472,561 shares of Interconexión Eléctrica S.A. ESP (ISA) equivalent to 51.4% of its outstanding shares, which represents 100% of the stake that MHCP has in ISA.

The lenders under the credit facility are Banco Santander, S.A., Citibank, N.A., JPMorgan Chase Bank, N.A. and The Bank of Nova Scotia, each with a 25% participation.

The main considerations on the loan are: (i) Payment of 100% of capital at maturity within a 2-year maturity from the loan signing date; (ii) an interest rate of 3-month LIBOR + 80 basis points and (iii) an additional upfront fee of 30 basis points.

By means of the Resolution of Authorization obtained by the MHCP, the Company has complied with all the internal and external procedures and approvals required for this credit facility.

The conditions obtained on this loan confirm the confidence that the financial sector has in the Ecopetrol Group’s financial standing and its prospects with the announced ISA acquisition.

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