BOGOTA,
Colombia, Aug. 29, 2023 /PRNewswire/ -- Ecopetrol
S.A. (BVC: ECOPETROL; NYSE: EC) announces that, as part of its
comprehensive debt management strategy, it has been granted
authorization by the Ministry of Finance and Public Credit
("MHCP"), through Resolution 2152 dated August 24, 2023, to execute a credit agreement
for up to USD 1,000 million. This
loan will serve to fund the Company's organic investment plan for
2023.
Deutsche Bank AG, Banco Inbursa S.A., Banco Latinoamericano de
Comercio Exterior S.A., and ICBC Standard Bank Plc will act as
lenders. The loan is set to span a period of 7 years from the
agreement's signing date, with principal payments commencing in the
third year. The interest rate will be variable and determined by
the involved parties.
The execution of the loan agreement and the initial disbursement
of USD 800 million are anticipated to
occur within the coming days. Additionally, the loan allows for the
possibility of additional disbursements for up to USD 200 million within 90 days of the date of
execution of the agreement, subject to a contractual process. As
per the terms of the agreement sanctioned by the MHCP, the
aggregate value of this external public credit will not surpass
USD 1 billion.
This agreement serves as a testament to the international
financial sector's support and confidence in the strategic
direction of the Ecopetrol Group.
In accordance with the law, the MHCP reviewed and endorsed the
terms of the documentation, which define potential default
scenarios by the borrower. These scenarios include failure to pay
principal and interest, the borrower's inability to meet financial
commitments, compromise to the accuracy of the borrower's financial
data, and failure to fulfill contractual obligations, among others
which are common in transactions of this nature. Should any of
these outlined events materialize, the lenders would have the right
to demand the early repayment of the debt, following the procedure
specified in the contract. Similarly, the loan documentation
establishes Ecopetrol's right to indemnification from the lenders
in cases where the disbursements are not made on a timely manner.
All of the above adheres to the regulatory framework of the
State of New York.
Ecopetrol is the largest company in Colombia and one of the main integrated energy
companies in the American continent, with more than 18,000
employees. In Colombia, it is
responsible for more than 60% of the hydrocarbon production of most
transportation, logistics, and hydrocarbon refining systems, and it
holds leading positions in the petrochemicals and gas distribution
segments. With the acquisition of 51.4% of ISA's shares, the
company participates in energy transmission, the management of
real-time systems (XM), and the Barranquilla - Cartagena coastal highway concession. At the
international level, Ecopetrol has a stake in strategic basins in
the American continent, with Drilling and Exploration operations in
the United States (Permian basin
and the Gulf of Mexico),
Brazil, and Mexico, and, through ISA and its subsidiaries,
Ecopetrol holds leading positions in the power transmission
business in Brazil, Chile, Peru,
and Bolivia, road concessions in Chile, and the telecommunications sector. This
press release contains business prospect statements, operating and
financial result estimates, and statements related to Ecopetrol's
growth prospects. These are all projections and, as such, they are
based solely on the expectations of the managers regarding the
future of the company and their continued access to capital to
finance the company's business plan. The realization of said
estimates in the future depends on the behavior of market
conditions, regulations, competition, and the performance of the
Colombian economy and the industry, among other factors, and are
consequently subject to change without prior notice.
This release contains statements that may be considered
forward-looking statements within the meaning of Section 27A of the
U.S. Securities Act of 1933, as amended, and Section 21E of the
U.S. Securities Exchange Act of 1934, as amended. All
forward-looking statements, whether made in this release or in
future filings or press releases, or orally, address matters that
involve risks and uncertainties, including in respect of the
Company's prospects for growth and its ongoing access to capital to
fund the Company's business plan, among others. Consequently,
changes in the following factors, among others, could cause actual
results to differ materially from those included in the
forward-looking statements: market prices of oil & gas, our
exploration, and production activities, market conditions,
applicable regulations, the exchange rate, the Company's
competitiveness and the performance of Colombia's economy and industry, to mention a
few. We do not intend and do not assume any obligation to update
these forward-looking statements.
For more information, please contact:
Head of Capital Markets
Carolina Tovar Aragón
Email: investors@ecopetrol.com.co
Head of Corporate Communications
Marcela Ulloa
Email: marcela.ulloa@ecopetrol.com.co
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SOURCE Ecopetrol S.A.