- Ecopetrol (EC, Financial) receives authorization to enhance its bond issuance program, allowing for sustainable and specific-purpose bonds.
- The amendments enable the issuance of up to COP 2.1 trillion in bonds, bolstering flexibility in capital markets.
- These changes align with Ecopetrol's strategy for decarbonization and energy transition.
Ecopetrol S.A. (NYSE: EC), Colombia's largest energy company, has received authorization from the Financial Superintendency of Colombia to amend its Local Public Bond and Commercial Paper Issuance and Placement Program (PEC). The authorization, given through Resolution 1139, introduces significant updates to the company's bond issuance capabilities.
The key amendments now allow Ecopetrol to issue sustainable performance-linked bonds and specific-purpose bonds, including green, social, sustainable, and blue bonds. Furthermore, the program now accommodates bonds permitting in-kind payments, as well as those indexed to UVR and TRM. Additionally, the amendments provide for bond reopenings and security allocation through a book-building process, enhancing market responsiveness and liquidity.
Since the inception of the program in August 2013, when COP 900 billion was issued, no further issuances have taken place. However, Ecopetrol retains the capacity to issue up to COP 2.1 trillion in additional bonds and commercial papers, a move that supports the company's strategic aims in decarbonization and expanding its footprint in the capital markets.
This updated bond issuance program reflects Ecopetrol's commitment to aligning its financing options with sustainable and innovative financial practices, potentially attracting a broader investor base keen on supporting energy transition efforts.
