(Ecopetrol, 30.Aug.2021) — Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC), informs that during the session held on Friday 27 August 2021, its Board of Directors approved the framework for the Third Round of the Program for the Issuance and Placement of Common Stock, in accordance with Law 1118 of 2006. The Program as well as the rest of documentation required by Colombian law, will be submitted to the Colombian Superintendence of Finance for its review and approval.
As provided by Law 1118 of 2006, to the extent any potential public offerings of Common Stock are carried out under the Program, the Nation (Colombia) will maintain at least 80% of the common equity interest of Ecopetrol.
The Program contemplates a 5-year, term during which the company may carry out one or more public offerings of Common Stock with a specific purpose to finance its energy transition plan, including: (i) organic growth projects, (ii) inorganic growth opportunities and (iii) strengthening Ecopetrol’s balance sheet and/or reducing its indebtedness.
The approvals by the Board of Directors of Ecopetrol and, when granted, by the Colombian Superintendence of Finance, related to the Program, provide optionality for its capital structure to finance the development of its energy transition strategy. However, such approvals do not imply any commitment or obligation on the company to issue Common Stock. Any public offering of Common Stock under the Program will be subject to favorable market conditions.
The company’s Board of Directors delegated to Ecopetrol’s CEO the authority to conduct the necessary procedures to conclude the authorization process of the Program, in accordance with the company’s statutory provisions.