Press release 📈 Stocks 🌍 Colombia

Ecopetrol Prices US$2.0 Billion in Bonds to Optimize Debt Profile

Ecopetrol secured US$2.0 billion in international bonds at a 7.875% coupon, achieving the lowest spread to Colombia in five years to refinance existing liabilities and acquisition debt.

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Ecopetrol priced US$2.0 billion 7.875% notes due 2034 with a peak orderbook of about US$6.93 billion (roughly 3.5 times oversubscribed) and the lowest spread to the Republic of Colombia in five years. Proceeds redeem US$810 million of 8.625% 2029 notes and repay the Brava Energia acquisition financing without raising total debt, reducing refinancing risk. The deal supports credit quality and liquidity, though it does not change operations or earnings directly.

Catalysts
  • ▲ Pricing of US$2.0 billion notes due 2034 on November 9, 2026, with settlement expected November 12, 2026
  • ▲ Redemption of US$810 million 8.625% 2029 notes scheduled for November 19, 2026
Risk Factors
  • ▼ New 7.875% coupon carries a high interest cost
  • ▼ Final transaction size will only be determined on November 19, 2026

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🎯 Key Takeaways

  • Ecopetrol priced US$2.0 billion in 7.875% notes due 2034 with a peak orderbook of US$6.93 billion.
  • The offering achieved the lowest spread relative to the Republic of Colombia in five years.
  • Proceeds will fund the redemption of US$810 million in 8.625% notes due 2029 on November 19, 2026.
  • The transaction settles on November 12, 2026, and does not increase the company's overall indebtedness.

📝 Executive Summary

Ecopetrol S.A. successfully priced US$2.0 billion in 7.875% notes due 2034, attracting a peak orderbook of US$6.93 billion from over 235 investors. The company will use the proceeds to redeem US$810 million of 2029 notes and repay short-term financing from its August 2026 Brava Energia acquisition, effectively managing its debt without increasing total indebtedness.

❓ FAQ

Does this bond offering increase Ecopetrol's debt?

No. The company states the operation replaces existing liabilities and does not increase overall indebtedness; it redeems US$810 million of 2029 notes and repays the short-term financing for the Brava Energia acquisition.

Why is strong demand for the bonds relevant for shareholders?

The peak orderbook of about US$6.93 billion, roughly 3.5 times the amount offered, allowed Ecopetrol to achieve the lowest spread relative to the Republic of Colombia in an international debt offering in five years, which reduces refinancing risk and preserves liquidity and financial flexibility.