By Prabha Natarajan
Ecopetrol S.A.(EC), the Colombian state oil company, launched a
$2.5 billion bond offering Wednesday.
The multitranche deal comes on the back of other emerging-market
issuers coming to market this week, using the window of opportunity
before the Federal Reserve's meeting next week. At that time, the
U.S. central bank is expected to decide on whether it would begin
to taper its bond-buying program, which already has led to
investors paring back on their exposure to emerging-market
assets.
Ecopetrol's three-tranche offering is expected to be priced
later today.
The $350 million, five-year note launched at a price of 260
basis points over comparable Treasury yields. The 10-year note was
at a price of 305 basis points over comparable Treasury yields. The
30-year note was quoted at 350 basis points over comparable
Treasury yields.
Colombia Finance Minister Mauricio Cardenas said that Ecopetrol
plans to use most of the funds from the bond sale for overseas
investments, a move that will avert an influx of dollars in the
local spot market and could deflect any pressure on the Colombian
peso.
--Darcy Crowe contributed to the article.
Write to Prabha Natarajan at prabha.natarajan@wsj.com