(Ecopetrol, 11.May.2023) — Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) informs that, by means of Resolution 1114 of 10 May 2023, the Ministry of Finance and Public Credit authorized the execution of a credit agreement for up to $400mn, as part of its comprehensive debt management strategy.
The loan will be subscribed with Banco Bilbao Vizcaya Argentaria, S.A. New York Branch and MUFG Bank LTD, each participating with an amount equal to $250mn and $150mn, respectively. The credit will have (i) a term of five (5) years from the signing date, expected before the end of the month, together with the disbursement, (ii) principal payable at maturity and (iii) a variable interest rate previously agreed between the parties.
This agreement demonstrates the support and confidence of the international financial sector in Ecopetrol’s Group strategy.
In accordance with applicable legislation, the Ministry reviewed and authorized the terms and conditions of the credit agreement which are related to events of default by the borrower, such as failure to pay principal or interest by the payment due date, the borrower’s inability to pay its debts as they become due, inaccuracy or impairment in the integrity of the borrower’s financial information, breach of covenants, etc., which are frequently present in transactions of this nature. If any of the borrower’s events of default materialize, the lenders would have the right to claim early payment of the debt, according to the early termination procedures of the credit agreement. Similarly, the credit agreement establishes the right of Ecopetrol to demand compliance from the lenders when they fail to make disbursements in accordance with the terms and conditions of the credit agreement. All of the above is governed by the laws of the State of New York.