Ecopetrol gets commitments for $1.2 billion contingent credit line

By Marisa Wong

Los Angeles, Aug. 2 – Ecopetrol SA announced that Colombia’s Ministry of Finance and Public Credit authorized the execution of an up to $1.2 billion contingent credit line, according to a company press release.

The committed credit line will be subscribed with Banco Bilbao Vizcaya Argentaria SA New York Branch, Banco Santander, SA, JPMorgan Chase Bank, NA, Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corp. and Bank of Nova Scotia, each participating with an amount of up to $200 million.

The credit line will have a two-year availability period for disbursements, starting on the signing date, subject to the following conditions: principal payable at maturity, three years from the agreement’s date; an interest rate of six-month Libor plus 125 basis points; an up-front and structuring fee of 40 bps; and a commitment fee of 37 bps per year on the undisbursed principal during the availability period.

Loan proceeds may be used for general corporate purposes in the ordinary course of business, including the strengthening of Ecopetrol’s liquidity position in case of eventual organic growth opportunities, risk mitigation in connection with unexpected fluctuations in oil prices, as well as reducing specific refinancing needs in the coming years with flexibility and competitive borrowing costs.

The oil company is based Bogota, Colombia.

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