#Ecuador #Investment #Notes #Quito

Ecuador's Tender Offer for Notes

On January 26, 2026, the Republic of Ecuador revealed the total principal amounts accepted for its tendered notes under a previously announced cash purchase offer. The acceptance followed the expiration of the Offer on January 23, 2026, creating notable interest among investors and financial analysts.

The Republic disclosed that it would pay a maximum total of $3.0 billion for the purchase of validly tendered notes as per the Offer, which had been set out in detail in the Offer to Purchase issued on January 16, 2026. This strategic move aims to manage the nation’s public debt effectively and improve its overall financial posture.

Details of the Tender Offer

Ecuador accepted several series of notes, with prominent examples being the Step-Up Coupon Notes due 2030 and 2035. According to the announcement, the purchase prices offered are $1,000.00 per $1,000 principal amount of the 2030 Notes, which reflected a total acceptance of $2,482,127,807.00 in this category. Additionally, for the 2035 Notes, they accepted $575,413,547.00 for a purchase price of $900.00 per $1,000 principal due to a proration factor of 27.10%.

Here's a quick rundown of the noted amounts:

• - 2030 Notes: Accepted amount of $2,482,127,807.00. Remaining outstanding amount is $558,996,457.00.
• - 2035 Notes: Accepted amount of $575,413,547.00 on a prorated basis, leading to a remaining outstanding amount of $5,927,377,145.00.

This systematic approach towards refinancing allows Ecuador to improve cash inflow and provides a voucher for further investment opportunities. The overall strategy appears to have been well-received, with various stakeholders expressing optimism for the nation’s economic agenda.

Settlement Information and Conditions

Settlement for the accepted notes is scheduled for January 29, 2026. It’s essential to note that acceptance of these offers is subject to various conditions, mainly concerning the concurrent closure of one or more series of new global notes that are expected to fund parts of this tender offer.

The Republic is set to leverage revenues from general sources to cover the balance of the purchase price for the notes accepted. It’s interesting to observe how the financial maneuvers of the Republic are aimed at enhancing liquidity while managing outstanding debt strategically.

Morrow Sodali International LLC, operating under the name Sodali Co, acts as the tender agent for this transaction, alongside prominent investment firms such as BofA Securities, Inc. and Citigroup Global Markets Inc. as Dealer Managers.

Conclusion

The Republic of Ecuador is making significant strides in its financial management through this tender offer, showcasing a commitment to transparency in its dealings. Investors are watching closely with regard to how these decisions will impact future purchasing power and overall economic health. The tender offer reflects Ecuador's responsive measures during challenging economic environments, and ongoing developments will likely shape market conditions in the near future.