the colombian oil company ecopetrol issued 10-year bonds in the international market, obtaining resources from external investors for 2,000 million dollars, after they demanded up to three times the amount placed.
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Nearly 320 investors from the United States, Europe, Asia and Latin America showed strong interest in the securities that received a BB+ rating from the Fitch Rating Agencywhich indicates a low probability of default compared to other issuers rated in lower categories.
The proceeds from said issuance will be used to prepay the balance of the credit obtained to finance the acquisition of 51.4 percent of Electric Interconnection SA (ISA); and to finance Ecopetrol’s 2023 organic investment plan, as well as other non-investment expenses, including the refinancing of obligations that mature this year, the company specified.
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According to Fitch, Ecopetrol’s ratings reflect the strong link with the credit profile of the Nation, which owns 88.5 percent of the total capital of the oil company”, as well as the strong incentive of the colombian government to support the company in case of financial difficulties, given its strategic importance for the country, since it supplies almost all the liquid fuel demand in Colombia.
Ecopetrol’s credit profile is higher than that of pemex, as a result of the deleveraging of Ecopetrol’s capital structure in the face of the increasing leverage trajectory of the Mexican company, says Fitch, which estimates that “Ecopetrol will continue to report stable production, around 700,000 barrels per day.
