(Bloomberg) — Ecopetrol is using a loan from Sumitomo Mitsui Banking Corporation to repay other debt this week after postponing a bond sale on the international market.
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Colombia’s state-run energy company said in a regulatory filing Thursday that it will use an existing $250 million loan with Sumitomo Mitsui to repay half of a $1 billion loan due in 2030. Then he announced. The rest will come from cash on hand.
The announcement comes after an eventful week that started with Ecopetrol launching a $1.75 billion dollar bond offering early Tuesday morning. The plan was to use the proceeds to buy back bonds and repay part of the loan in 2030. Conditions were set, including a yield of 7.65%, but a price was never set and the sale was later postponed.
Ecopetrol did not immediately respond to a request for comment.
The delay comes after Colombia’s electoral commission launched an investigation into Gustavo Petro’s alleged violations of campaign finance restrictions during his 2022 presidential bid. The investigation involves Petro and Ecopetrol’s CEO Ricardo Roa, who managed their campaigns before joining the company.
“Bond investors still view bonds as the quintessential quasi-sovereign instrument of national policy, and it is likely that this deal will be withdrawn and returned with an additional 50 basis points coupon in the coming weeks,” said Roger Horn. I’m sure he’ll be happy about that.” , Senior Emerging Markets Strategist at Mariba Capital Markets.
“Ecopetrol’s credibility is not so bad because of all these political headlines,” he says.
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