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The oil company Ecopetrol reported on Monday through a communication that it made a successful issuance of public debt bonds in the international market for 2,000 million dollars, despite the crisis that the sector is experiencing due to low oil prices.
The bonds, with a 10-year maturity, were placed with a yield of 7.0% and a coupon of 6.875% in an operation in which demand reached $ 5 billion, that is, 2.5 times the amount offered .
“Despite the current oil situation, 250 investors from the United States, Europe, Asia and Latin America reaffirmed their vote of confidence in Ecopetrol, in its solidity and in its ability to face the new scenario,” said the state company.
According to Ecopetrol, this transaction “seeks to anticipate eventual cash needs associated with a deterioration in market conditions and provide flexibility in the development of the business strategy. At the moment, based on available information and current financial projections, no additional borrowing needs are estimated for the current year. “
The multinational is the largest company in Colombia and in 2019 it obtained a net profit of 13.3 trillion pesos (about 3,871 million dollars), the highest in the last six years and 14.7% higher than in 2018 .
The collapse of international oil prices amid the global crisis of demand due to the coronavirus pandemic, has punished in recent weeks the company’s actions in the stock markets.
To adapt to the changing conditions of the world oil market, Ecopetrol announced on March 17 a cut of 1,200 million dollars in its investment plan for this year, which was in a range between 3,300 and 4,300 million dollars.
The Colombian state company recalled on that occasion that to maintain its cash flow, it also has available committed lines of credit for 665 million dollars with international banks and the terms for another with local banks for 990,000 million pesos have been agreed.
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