Ecopetrol continues the financing of its 2016 investment plan with a local bank loan for COP$990 billion
February 24, 2016 at 11:55 AM EST
BOGOTA, Colombia, Feb. 24, 2016 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; TSX: ECP) ("Ecopetrol" or the "Company") reports that on February 23, 2016, it signed a bilateral commercial loan agreement with Bancolombia S.A. for COP$990 billion (Approximately USD$300 million).
The Company fulfilled all the procedures and approvals required by the relevant government authorities in Colombia, including receipt of Resolution of Authorization No. 445 of February 22, 2016 from the Ministry of Finance and Public Credit.
This loan agreement has a term of 8 years and a 2-year grace period on principal, with interest payable semiannually at a rate of DTF TA + 560 basis points. With this loan agreement, the Company continues the funding of its 2016 investment plan and is able to diversify the currency of its financing sources.
The resources from the loan will be used for the 2016 investment plan and other general corporate purposes.
The terms of this loan agreement confirm that the Company has access to resources not only in the international market, but also in the Colombian banking market. This transaction also illustrates the local market's confidence in Ecopetrol.
Ecopetrol is the largest company in Colombia and is an integrated oil & gas company; it is among the top 50 oil companies in the world and among the four top ones in Latin America. Besides Colombia - where it generates over 60% of the national production - it has exploration and production activities in Brazil, Peru & the US (Gulf of Mexico). Ecopetrol owns the largest refinery in Colombia and most of the pipeline and multi-product pipeline network in the country, and is significantly increasing its participation in bio-fuels.
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 and Section 21E of the U.S. Securities Exchange Act of 1934. 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 further information, please contact:
Head of Corporate Finance and Investor Relations
Media Relations (Colombia)
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SOURCE Ecopetrol S.A.