BOGOTÁ, Colombia,
Sept. 10, 2018 /CNW/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE:
EC) ("Ecopetrol" or the "Company") reports that as part of its
integral debt management strategy, it will sign a contingent
line of credit for USD 665 million
with Scotiabank (USD 430 million) and
Mizuho Bank (USD 235 million).
Under this type of facility, known as a committed line of
credit, Scotiabank and Mizuho
Bank agree to disburse funds as and when Ecopetrol requires
them, under terms and conditions previously agreed between the
parties. This facility would increase the Company's
indebtedness only when the disbursements are made.
The contingent line will have a two (2) year availability period
for disbursements, subject to the following conditions: (i)
principal amortizable upon maturity after a five-year term as from
the signing date of the agreement, and (ii) an interest rate of
6-month LIBOR + 125 basis points and an annual fee of 30 basis
points on principal not disbursed during the availability
period.
Resources to be deployed under this contingent line may be
used for general corporate purposes, among them to strengthen
Ecopetrol's liquidity position in the face of eventual growth
opportunities, to mitigate risks associated to unexpected
fluctuations in crude prices, as well as to reduce refinancing
specific needs in the coming years, with flexibility and low
financing costs.
To obtain the committed line of credit, the Company complied
with all required internal and external procedures and approvals,
including the corresponding Authorization Resolution by the
Ministry of Finance and Public Credit**.
The conditions obtained confirm the local international
financial sector's confidence in the Company.
** This administrative act can be subject to
clarifications or changes, ex officio or at request of a party, in
accordance with the legal mechanism that are applicable to the
effect.
This release contains statements that may be
considered forward looking statements within the meaning of Section
27A of the U.S. Securities Act of 1933 and Section 21E of the U.S.
Securities Exchange Act of 1934. All forward-looking statements,
whether made in this release or in future filings or press releases
or orally, address matters that involve risks and uncertainties,
including in respect of the Company's prospects for growth and its
ongoing access to capital to fund the Company's business plan,
among others. Consequently, changes in the following factors, among
others, could cause actual results to differ materially from those
included in the forward-looking statements: market prices of oil
& gas, our exploration and production activities, market
conditions, applicable regulations, the exchange rate, the
Company's competitiveness and the performance of Colombia's economy and industry, to mention a
few. We do not intend, and do not assume any obligation to update
these forward-looking statements.
For further information contact:
Capital Markets Manager
Maria
Catalina Escobar
Telephone: +571-234-5190
Email: investors@ecopetrol.com.co
Media Relations (Colombia)
Jorge Mauricio Tellez
Telephone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co
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content:http://www.prnewswire.com/news-releases/ecopetrol-obtains-the-approval-for-a-contingent-line-of-credit-with-international-banks-for-usd-665-million-300710051.html
SOURCE Ecopetrol S.A.