By Prabha Natarajan
Ecopetrol S.A.(EC), the Colombian state oil company, sold $2.5
billion in debt 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 sold at its launch price.
The $350 million, five-year note launched at a price of 260
basis points over comparable Treasury yields to yield 4.349%. The
10-year note was at a price of 305 basis points over comparable
Treasury yields or a yield of 6.005%. The 30-year note was quoted
at 350 basis points over comparable Treasury yields or a yield of
7.419%.
Ecopetrol plans to use most of the funds from the bond sale for
overseas investments, a move that Colombia's finance minister said
would avert an influx of dollars in the local spot market and
deflect any pressure on the Colombian peso.
Write to Prabha Natarajan at prabha.natarajan@wsj.com