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

Ecopetrol (NYSE:EC)
Historical Stock Chart
From Aug 2024 to Sep 2024 Click Here for more Ecopetrol Charts.
Ecopetrol (NYSE:EC)
Historical Stock Chart
From Sep 2023 to Sep 2024 Click Here for more Ecopetrol Charts.