The Colombian oil company Ecopetrol contracts a loan for 1,000 million dollars

ecopetrol announced that it signed a credit agreement worth 1,000 million dollars with international banks. 70% of the loan was contracted with The Bank of Nova Scotia and the remaining 30% with Sumitomo Mitsui Banking Corporation.

The loan has a five-year term and is part of the comprehensive debt management and refinancing strategy for 2023 maturities. Among the conditions of the contract are that the capital be “payable in four equal semi-annual installments during the last two years of life of the contract, and a variable interest rate of SOFR plus 210 basis points payable semi-annually,” the company reported.

With this measure, it is intended to replace the external loan of 665 million nominal dollars that it had contracted ecopetrol in September 2018 with Mizuho Bank LTD, The Bank of Nova Scotia y Sabadell Bank. Likewise, the company seeks to assume the payments on the principal maturities of the credits of the Cartagena Refinery.

This external public debt management operation was approved by the Ministry of Finance through resolution 3373 of December 19, 2022.

Last week, Ecopetrol’s Board of Directors approved a general investment plan with an amount ranging between 25.3 billion Colombian pesos and 29.8 billion Colombian pesos for the year 2023, in which special emphasis was placed on promoting the energy transition.