(Ecopetrol, 27.Nov.2018) — Ecopetrol S.A. provided a Notice of Redemption to the Noteholders of its 7.625% Notes due 2019 issued on July 23, 2009 in the aggregate principal amount of $1,500 million and with an original maturity date of July 23, 2019.
The Redemption Date will be December 27, 2018. Pursuant to the terms of the Notes, the redemption price will be approximately, $1,025.29 per $1,000 principal amount, plus accrued and unpaid interest to the Redemption Date equal to $32.62 per $1,000 principal amount, amounting to, approximately, $1,057.91 per $1,000 principal amount, to be finally calculated three business days prior to the Redemption Date.
Ecopetrol was able to take advantage of the Notes’ optional redemption clause due to the company’s solid cash position, which amounted to COP 18.1 trillion (approximately $6,090 million) at September 30, 2018.
The redemption provides financial savings for the Ecopetrol Group. In particular, after the redemption, as if it had occurred on September 30, 2018, the company’s Gross Debt/EBITDA indicator (based on EBITDA over the past 12 months) would have dropped from 1.4x to 1.2x.
It is also expected that the Ecopetrol Group’s cash position will remain at a solid level to year-end and thus the Ecopetrol Group should be able to finance the investment plan announced for 2019, pay dividends and have the flexibility to cope with different crude price volatility scenarios.
This redemption is in line with the objectives of the company’s 2020 business plan and confirms Ecopetrol’s commitment to continue to improve its credit rating and competitive shareholder returns.