Ecopetrol S.A. obtains authorization from the Financial Superintendency of Colombia to amend its Local Public Bond and Commercial Paper Issuance and Placement Program

Rhea-AI Summary

Ecopetrol (NYSE: EC), Colombia's largest energy company, has received authorization from the Financial Superintendency of Colombia to amend its Local Public Bond and Commercial Paper Issuance and Placement Program (PEC). The authorization, granted through Resolution 1139, enables significant updates to the company's bond issuance capabilities.

The key amendments include the ability to issue sustainable performance-linked bonds, specific-purpose bonds (green, social, sustainable, and blue), bonds allowing in-kind payments, and bonds indexed to UVR and TRM. The program will also permit bond reopenings and security allocation through book-building.

Since the Program's first issuance of COP 900 billion in August 2013, no additional issuances have occurred. Ecopetrol maintains the capacity to issue additional bonds and commercial papers worth up to COP 2.1 trillion. The amendments align with Ecopetrol's corporate strategy focusing on decarbonization and energy transition while expanding its capital market options.

Positive

• Authorization to issue sustainable performance-linked bonds and specific-purpose bonds (green, social, sustainable, blue)
• Significant remaining bond issuance capacity of COP 2.1 trillion
• Enhanced flexibility with new bond types including UVR and TRM indexed bonds
• Alignment with corporate decarbonization and energy transition strategy

Negative

• No additional bond issuances made under the Program since August 2013

Insights

Corporate Finance Analyst

Ecopetrol gains flexible financing options aligned with sustainability goals, signaling preparation for future capital raising without immediate financial impact.

Ecopetrol's authorization to amend its bond program represents a strategic enhancement of its financing toolkit. The Colombian oil giant now has the flexibility to issue sustainability-linked bonds and specific-purpose bonds (green, social, sustainable, and blue), positioning it alongside global energy majors who have increasingly tapped sustainable finance markets.

The expanded program features several technical innovations that provide Ecopetrol with sophisticated financing mechanisms:

• Bonds indexed to UVR (inflation protection) and TRM (currency exchange rates), providing natural hedges against macroeconomic volatility
• Ability to accept in-kind payments from investors, potentially opening doors to novel financing structures
• Option to reopen previous issuances, allowing for increased liquidity in existing bond series
• Implementation of bookbuilding process, enabling more market-responsive pricing

Particularly noteworthy is that despite having this program since 2013, Ecopetrol has only issued COP 900 billion of the total COP 3 trillion capacity, leaving COP 2.1 trillion (approximately USD 500-550 million) available for future issuances. The timing of this amendment suggests Ecopetrol may be preparing for capital raises to support its energy transition initiatives.

This authorization itself doesn't immediately impact Ecopetrol's balance sheet or cash position. Rather, it creates valuable optionality for future financing that aligns with the company's decarbonization strategy while potentially broadening its investor base to include ESG-focused funds who might offer more favorable terms for sustainable instruments.

BOGOTA, Colombia, July 1, 2025 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC, the "Company" or "Ecopetrol") announces that the Financial Superintendency of Colombia (SFC), through Resolution 1139 dated June 11, 2025[1], authorized an amendment to the prospectus for the issuance and placement program (the "PEC" or the "Program") of Ecopetrol's local public bonds and commercial paper.

This amendment, formalized through Addendum No. 5, will be incorporated into the Program's prospectus and will include the following key updates:

1. Issuance, under the PEC, of local public bonds linked to sustainable performance, as well as bonds for specific purposes (green, social, sustainable, and blue bonds);
2. Issuance of bonds that allow in-kind payments by investors;
3. Reopening of bond issuances carried out under the PEC;
4. Issuance of bonds indexed to the UVR (Real Value Unit);
5. Issuance of bonds indexed to the TRM (Representative Market Exchange Rate); and
6. Allocation of securities through a book-building process.

This amendment aims to align the Program with Ecopetrol's corporate strategy for decarbonization and energy transition, while also expanding the range of alternatives available in capital markets.

It is worth nothing that since the first bond issuance under the Program in August 2013, totaling nine hundred billion Colombian pesos (COP 900,000,000,000), no additional issuances have been made. As a result, Ecopetrol may still issue additional bonds and commercial papers for up to two trillion one hundred billion Colombian pesos (COP 2,100,000,000,000).

Ecopetrol will duly inform the market of any future issuances carried out under the Program.

Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 19,000 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 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 (a)
Daniel Alexander Hurtado
Email: investors@ecopetrol.com.co 

Head of Corporate Communications (Colombia)
Marcela Ulloa
Email: marcela.ulloa@ecopetrol.com.co 

¹ Resolution 1139 was notified to Ecopetrol by the Financial Superintendency of Colombia (SFC) on June 12, 2025. As a result, and in accordance with the ten-day period established in Article 5 of the same resolution, it became final on June 27, 2025.

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SOURCE Ecopetrol S.A.

FAQ

What changes did Ecopetrol (NYSE: EC) receive authorization for in its bond program?

Ecopetrol received authorization to issue sustainable performance-linked bonds, specific-purpose bonds (green, social, sustainable, blue), bonds with in-kind payments, UVR and TRM indexed bonds, and implement book-building allocation.

How much can Ecopetrol (EC) still issue under its bond program?

Ecopetrol can still issue up to COP 2.1 trillion in bonds and commercial papers under the program.

When was Ecopetrol's last bond issuance under this program?

Ecopetrol's last and only bond issuance under this program was in August 2013, totaling COP 900 billion.

What is the purpose of Ecopetrol's bond program amendments?

The amendments aim to align the program with Ecopetrol's corporate strategy for decarbonization and energy transition while expanding its capital market alternatives.

What types of new bonds can Ecopetrol (EC) now issue under the amended program?

Ecopetrol can now issue sustainable performance-linked bonds, green bonds, social bonds, sustainable bonds, blue bonds, bonds with in-kind payments, and bonds indexed to UVR and TRM.