Ecopetrol Secures Authorization to Refinance $1.25 Billion in Debt
Colombian oil company Ecopetrol has received Finance Ministry authorization for a $1.25 billion syndicated loan from four international banks to refinance existing debt obligations.
| Sectors | Oil |
|---|---|
| Themes | Investments & Transactions, Financing |
| Companies | Bank of America, Bank of China Limited, Ecopetrol S.A., Banco Bilbao Vizcaya Argentaria, S.A., JP Morgan Chase Bank, N.A. |
| Countries | Colombia, United States, Panama |
Ecopetrol S.A., Colombia's leading petroleum group, has received authorization from the Ministry of Finance and Public Credit (MHCP) to take out a loan of up to $1.25 billion. Resolution No. 0666, dated April 1, 2026, frames the transaction within the group's comprehensive debt management strategy.
Four International Banks for a Syndicated Loan
The financing is split among four banking institutions. Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), New York Branch, contributes $350 million, as do Bank of America, N.A. and JP Morgan Chase Bank, N.A. Bank of China Limited, Panama Branch, provides the remaining $200 million.
Repayment will be made in four equal installments over five years from the signing date. The loan carries a floating interest rate indexed to the SOFR (Secured Overnight Financing Rate), the benchmark overnight rate for U.S. dollar transactions.
Refinancing Two Existing Debt Obligations
The transaction covers the full repayment of the $1.2 billion loan authorized by the MHCP under Resolution No. 0652 of March 20, 2024, originally contracted to finance Ecopetrol's acquisition of an ownership interest in Interconexión Eléctrica S.A. E.S.P., Colombia's electricity transmission network operator. It also covers the repayment of $50 million of the outstanding balance on a $500 million loan authorized under Resolution No. 0910 of April 25, 2025.
The loan agreement includes standard events of default, including failure to pay principal or interest, potential impairment of the borrower's repayment capacity, and breach of covenants. Should such an event occur, lenders may demand early repayment of the debt. Ecopetrol also retains the right to seek recourse against lenders in the event of a failure to disburse funds. The agreement is governed by the laws of the State of New York.
