Ecopetrol S.A. obtains authorization from the Financial Superintendence of Colombia to extend the term of its Program for the Issuance and Placement of Domestic Bonds and Commercial Paper

Rhea-AI Summary

Ecopetrol has received authorization from the Financial Superintendence of Colombia to renew its Program for Issuance and Placement of Domestic Public Debt Bonds and Commercial Paper for an additional five years, until December 22, 2027. This program, which originally began in August 2013, still has a remaining balance of COP 2.1 trillion. However, the authorization does not obligate Ecopetrol to issue any debt and future offerings will depend on favorable market conditions.

Positive

• Renewal of the bond issuance program provides extended financial flexibility until December 2027.
• Remaining program balance of COP 2.1 trillion allows for potential funding opportunities.

Negative

• No obligation to issue debt may limit access to capital if market conditions are not favorable.

BOGOTÁ, Colombia, Dec. 22, 2022 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC, "Ecopetrol" or the "Company") informs that the Financial Superintendence of Colombia, through Resolution 1654 of November 18, 2022, authorized the renewal of the term of the Company's Program for the Issuance and Placement of Domestic Public Debt Bonds and Commercial Paper for an additional five (5) years, until December 22, 2027 (the "Program").

The first bond issuance under the program was made in August 2013 for an aggregate principal amount of nine hundred billion Colombian pesos (COP 900,000,000,000).  Since then, Ecopetrol has not undertaken additional issuances under the Program and as such the remaining amount of the program is two trillion one hundred billion Colombian pesos (COP 2,100,000,000,000). No other amendments were made to the terms and conditions of the Program.

This authorization does not create any commitment or obligation on Ecopetrol to issue debt or commercial paper, nor does it imply that an offering of debt or commercial paper has been launched. Any public offering of debt or commercial paper under the Program will be subject to, among other considerations, favorable market conditions.

In compliance with applicable law, Ecopetrol S.A. will timely inform the market about future issuances it decides to carry 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 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 (a)
Maria Catalina Escobar Hoyos
Email: investors@ecopetrol.com.co

Head of Corporate Communications (a)
Juan Guillermo Londoño
Correo electrónico: juan.londono@ecopetrol.com.co

 

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SOURCE Ecopetrol S.A.

FAQ

What is the significance of Ecopetrol's bond issuance program renewal?

The renewal allows Ecopetrol to issue bonds for another five years, enhancing its financial flexibility.

When does Ecopetrol's renewed bond issuance program expire?

The renewal extends the program until December 22, 2027.

What is the remaining balance of Ecopetrol's bond issuance program?

The remaining balance is COP 2.1 trillion.

Does the renewal of the bond program mean Ecopetrol will issue new debt immediately?

No, the program does not obligate Ecopetrol to issue new debt; future issuances depend on market conditions.

What are the risks associated with Ecopetrol's bond program?

Risks include dependence on favorable market conditions for future debt issuance.