By Jennifer Chiou
New York, Oct. 2 - Pacific Rubiales Energy Corp. announced that Oleoducto de los Llanos Orientales, the company that built and operates the oil pipeline that joins the Rubiales Field with the Ocensa Pipeline, completed a 500 billion Colombian peso issue of inflation-linked bonds on Thursday.
The bonds were offered on the Colombian capital market.
The securities have a maturity of seven years and bear interest at the domestic Consumers Price Index plus 488 basis points.
Corficolombiana was lead on the issue and structured the electronic Dutch auction.
There is a 50 billion Colombian peso over-allotment option.
The issue has been rated AAA by Fitch.
The Canadian oil and natural gas producer said that Oleoducto is a special purpose vehicle in which Ecopetrol and Pacific Rubiales hold an equity participation of 65% and 35%, respectively.
According to a news release, the pipeline runs 235 kilometers from the Rubiales Field to the Monterrey Station, and total investment for the project is $560 million, including financial costs.
Proceeds will go toward the second phase of the pipeline project, enabling transport capacity to reach 160,000 barrels of oil per day starting in January.
Pacific Rubiales produces natural gas and heavy crude oil in Colombia, where it owns 100% of Meta Petroleum Ltd., a Colombian oil operator that operates the Rubiales and Piriri oil fields in the Llanos Basin in association with Ecopetrol SA, the Colombian national oil company.
| Issuer: | Oleoducto de los Llanos Orientales
|
| Issue: | Inflation-linked bonds
|
| Amount: | 500 billion Colombian pesos
|
| Greenshoe: | 50 billion Colombian pesos
|
| Maturity: | Seven years
|
| Underwriter: | Corficolombiana
|
| Coupon: | Domestic Consumers Price Index plus 488 basis points
|
| Settlement date: | Oct. 1
|
| Stock symbol: | TSX: PEG
|
| Rating: | Fitch: AAA
|
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