#Ecopetrol #Colombia #Bogota #Debt Management #International Bonds

Ecopetrol's Bold Step into New Era

Ecopetrol S.A., the leading Colombian and significant energy company in the Americas, recently made a strategic leap by pricing a remarkable $2.0 billion offering of international bonds with a 7.875% interest rate, set to mature in 2034. This decisive action, which occurred on November 9, 2026, is a testament to Ecopetrol’s commitment to optimizing its debt portfolio and reinforcing investor confidence during a transformative phase for the company.

Strong Market Demand

The bond issuance indicates strong demand, drawing interest from both domestic and international investors. The peak order book for the offering reached an impressive $6.93 billion, representing about 3.5 times the principal amount offered. Over 235 investors across the United States, Europe, Asia, and Latin America participated, underlining the solid market optimism surrounding Ecopetrol's future.

The company's ability to achieve the lowest spread relative to the Republic of Colombia in an international debt offering over the past five years showcases its enhanced access to global capital markets under competitive terms. This positive reception reflects the strategic transformation efforts being implemented by the new management team.

Strategic Debt Management

Ecopetrol plans to utilize the proceeds from this bond offering to redeem existing debts and manage its short-term liabilities. Specifically, $810 million will be allocated to repay the outstanding 8.625% notes due in 2029. Furthermore, the company aims to fully repay the short-term acquisition financing for its recent acquisition of a stake in Brava Energia S.A., which took place on August 17, 2026.

This proactive approach to debt management not only replaces existing liabilities but also does not increase Ecopetrol's overall indebtedness. The transaction is designed to reduce near-term debt maturities, effectively lowering refinancing risks while preserving liquidity and enhancing financial flexibility.

Key Offering Details

The details of the bond issuance are as follows:

• - Tenor: 8 years
• - Transaction Date: November 9, 2026
• - Settlement Date: November 12, 2026
• - Maturity Date: November 12, 2034
• - Principal Amount: $2.0 billion
• - Yield: 7.980%
• - Coupon Rate: 7.875%
• - Issue Price: 99.388%
• - Interest Payment Frequency: Semi-annual

The company’s bonds have received ratings of Ba2, BB-, and BB from prominent rating agencies like Moody's, Standard & Poor's, and Fitch. The redemption for the 2029 notes is set for November 19, 2026, and the final size of this bond transaction will be communicated on that date.

Commitment to Sustainable Growth

Recognized as Colombia's largest company and a pivotal player in the Americas' energy sector, Ecopetrol is responsible for over 60% of hydrocarbon production in Colombia. The company is also engaged in various segments including petrochemicals, gas distribution, and energy transmission thanks to its recent acquisition strategies.

Through its various operations, including those in the United States, Brazil, and Mexico, Ecopetrol is poised for growth during this new era. The company believes that the strategic use of the bond proceeds will bolster its financial position and enable it to adapt to evolving market conditions and opportunities.

Ecopetrol remains committed to maintaining transparent communication with its investors and stakeholders and encourages them to review detailed documents previously filed with the U.S. Securities and Exchange Commission regarding the bond offering.

In summary, this bond issuance marks a significant step in Ecopetrol's new era, reflecting strong investor confidence and a strategic overhaul that positions the company for future growth in the competitive energy landscape.