Ecopetrol S.A. obtains authorization to carry out a debt management transaction of up to USD 1.25 billion

Ecopetrol (NYSE:EC) received MHCP authorization (Resolution No. 0666, Apr 1, 2026) to execute a up to USD 1.25 billion five‑year loan to support its debt management strategy.

Rhea-AI Summary

Ecopetrol (NYSE:EC) received MHCP authorization (Resolution No. 0666, Apr 1, 2026) to execute a up to USD 1.25 billion five‑year loan to support its debt management strategy.

The facility will repay a USD 1.2 billion 2024 loan and USD 50 million of a 2025 loan; lenders, maturity, interest index, and default terms were approved.

Positive

• Authorized facility up to USD 1.25 billion
• Lender syndicate includes four global banks with USD breakdown
• Five‑year term with repayment in four equal installments
• Used to refinance USD 1.2B 2024 loan and USD 50M of 2025 loan

Negative

• Floating rate exposure – interest indexed to SOFR
• Default acceleration risk – lenders may demand early repayment on borrower defaults
• Governing law – agreement governed by New York law

Argus Apr 6 session

-1.45% close to close Open Argus

Details

News Market Reaction – EC

In the Apr 6 session, EC declined 1.45%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details a USD 1.25 billion syndicated loan aimed at refinancing prior borrowings t...

Analysis

This announcement details a USD 1.25 billion syndicated loan aimed at refinancing prior borrowings tied to the ISA acquisition and other debt, with a five-year term and SOFR-linked floating rate. It fits Ecopetrol’s recent pattern of capital structure and governance updates. Investors may track future disclosures on interest expense, covenant headroom, and how this transaction affects the company’s maturity profile alongside oil price and regulatory risks.

Key Figures

Authorized loan amount: USD 1.25 billion BBVA loan tranche: USD 350 million Bank of America tranche: USD 350 million +5 more

Authorized loan amount

USD 1.25 billion

Maximum size of new loan authorized under Resolution No. 0666 (2026)

BBVA loan tranche

USD 350 million

Banco Bilbao Vizcaya Argentaria S.A. New York Branch participation

Bank of America tranche

USD 350 million

Bank of America, N.A. participation in new loan

JPMorgan tranche

USD 350 million

JP Morgan Chase Bank, N.A. participation in new loan

Bank of China tranche

USD 200 million

Bank of China Limited – Panama Branch participation

Loan term

5 years

New loan tenor from execution date, repaid in four equal installments

Refinanced ISA acquisition loan

USD 1.2 billion

Existing loan to be repaid from 2024 Resolution No. 0652

Stake in ISA

51.4%

Ownership of Interconexión Eléctrica S.A. E.S.P. shares

Historical Context

5 past events · Latest: Mar 30

5 events

1. Mar 30

   Shareholder meeting decisions

   24h Move

   +0.1%

   Approval of 2025 reports, COP 121 dividend, and large occasional reserve.

2. Mar 25

   Board statement

   24h Move

   +2.3%

   Board of Directors issued a formal statement without detailed disclosed impacts.

3. Mar 12

   Legal decision statement

   24h Move

   +2.9%

   Company commented on an Attorney General’s Office decision affecting Ecopetrol.

4. Mar 05

   ESG and climate chapter

   24h Move

   +8.8%

   Publication of 2025 social, environmental, and climate chapter under regulatory guidance.

5. Mar 04

   Earnings distribution proposal

   24h Move

   +8.8%

   Board proposed 2025 earnings distribution with COP 110 dividend and large reserve.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

sofr, events of default, forward-looking statements

3 terms

sofr financial

"bearing a floating interest rate indexed to the SOFR rate, under the terms..."

The Secured Overnight Financing Rate (SOFR) is a market benchmark that measures the cost of borrowing cash overnight using U.S. Treasury securities as collateral. Investors watch SOFR because it acts like a speedometer for short-term interest costs—affecting loan rates, bond yields and the pricing of interest-rate contracts—so movements change borrowing expenses, cash returns and the value of interest-sensitive investments.

events of default financial

"includes customary borrower events of default, such as failure to pay principal..."

Events of default are specific breaches or failures listed in a loan, bond, or credit agreement that give lenders the right to act, such as demanding immediate repayment, raising interest rates, or taking secured assets. They matter to investors because triggering one is like setting off a financial alarm: it raises the chance of foreclosure, restructuring, or bankruptcy and can sharply reduce the value of a company’s stock or bonds and increase borrowing costs.

forward-looking statements regulatory

"This release contains statements that may be considered forward-looking statements..."

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BOGOTA, Colombia, April 2, 2026 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) ("Ecopetrol" and together with its subsidiaries, the "Ecopetrol Group") hereby reports that, as part of its comprehensive debt management strategy, through Resolution No. 0666 dated April 1, 2026, the Ministry of Finance and Public Credit ("MHCP") authorized the execution of a loan of up to USD 1.25 billion.

The lenders participating in the loan are: Banco Bilbao Vizcaya Argentaria, S.A. New York Branch (USD 350 million), Bank of America, N.A. (USD 350 million), JP Morgan Chase Bank, N.A. (USD 350 million), and Bank of China Limited – Panama Branch (USD 200 million). The term of the loan will be five (5) years as from the execution date of the agreement, repayable in four (4) equal installments and bearing a floating interest rate indexed to the SOFR rate, under the terms previously agreed with the lenders.

This loan was authorized within the framework of a request submitted by Ecopetrol to execute an external public debt management. The transaction involves: (i) repayment of the USD 1.2 billion loan authorized by the MHCP under Resolution No. 0652 dated March 20, 2024, originally entered into for the acquisition of Ecopetrol's ownership interest in Interconexión Eléctrica S.A. E.S.P; and (ii) repayment of USD 50 million of the outstanding balance of the USD 500 million loan authorized by the MHCP under Resolution No. 0910 dated April 25, 2025.

The MHCP has reviewed and authorized the terms of the loan agreement, which includes customary borrower events of default, such as failure to pay principal or interest, potential impairment of the borrower's payment capacity, impairment of the integrity of its financial information, and breach of covenants. If any such event occurs, the lenders may demand early repayment of the debt, following the procedure set forth in the agreement. The agreement also provides Ecopetrol with the right to seek recourse against the lenders if they fail to disburse funds as required. The agreement is governed by the laws of the State of New York.

The terms of this agreement demonstrate the international financial sector's support for and confidence in the Ecopetrol Group's strategy to reduce debt costs and optimize its maturity profile.

All required internal procedures and approvals were completed by Ecopetrol prior to executing the loan.

Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 19,000 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 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:

Investor Relations Office
Email: investors@ecopetrol.com.co  

Head of Corporate Communications (Colombia) 
Marcela Ulloa
Email: marcela.ulloa@ecopetrol.com.co

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SOURCE Ecopetrol S.A.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the size and purpose of Ecopetrol's USD 1.25 billion loan (NYSE:EC) authorized April 1, 2026?

The authorized loan is up to USD 1.25 billion for debt management and refinancing. According to Ecopetrol, proceeds will repay a USD 1.2 billion 2024 loan and USD 50 million of a 2025 loan to optimize maturities.

Who are the lenders and how is the USD 1.25 billion facility (EC) allocated among banks?

Four international banks will participate with specific commitments totaling USD 1.25 billion. According to Ecopetrol, BBVA, Bank of America, and JP Morgan each commit USD 350 million; Bank of China Panama commits USD 200 million.

What are the key terms of Ecopetrol's new loan (NYSE:EC) including maturity and interest?

The loan has a five‑year term repayable in four equal installments and carries a floating interest rate indexed to SOFR. According to Ecopetrol, these terms were reviewed and authorized by the MHCP.

What default and legal provisions should investors note for Ecopetrol's USD 1.25B facility (EC)?

The agreement includes customary borrower default events that may trigger acceleration and remedies. According to Ecopetrol, the contract allows lender acceleration on specified defaults and is governed by New York law.