Ecopetrol S.A. Secures $500 Million Loan from International Bank

Ecopetrol S.A. Secures $500 Million Loan from Banco Santander

On April 25, 2025, Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) was granted authorization by Colombia's Ministry of Finance and Public Credit (MHCP) to proceed with a loan agreement worth up to $500 million with Banco Santander, S.A. This substantial loan is intended to enhance the company's financial strategies and operational capabilities amidst a complex economic landscape.

Loan Specifics

The loan will have a five-year term, with repayment due at maturity. The interest accrued will be indexed to the Secured Overnight Financing Rate (SOFR), reflecting an increasingly popular standard in financial agreements. This move is a calculated step for Ecopetrol as it aligns with the company's 2025 financing plan to meet its Gross Debt/EBITDA target for the year.

!Ecopetrol Logo

Prior to obtaining this authorization, Ecopetrol adhered to all necessary internal processes and received the respective approvals required by the MHCP, ensuring compliance with governmental regulations. This transparency not only facilitates the loan process but also reinforces Ecopetrol's strong standing within the financial sector.

A Positive Outlook Amid Challenges

The successful negotiation of this loan agreement underscores the confidence that international financial institutions have in Ecopetrol's strategic vision. Despite global market challenges, including fluctuating oil prices and regulatory scrutiny, the company remains resilient and capable of securing favorable financing options. It is noteworthy that the agreement will be governed by the laws of New York, adding an extra layer of assurance and stability to the arrangement.

Ecopetrol, Colombia's largest enterprise, employs over 19,000 people and significantly contributes to the national economy. The company produces over 60% of Colombia's hydrocarbons and has established a robust infrastructure for transportation, logistics, and refining. Recent successes, including its acquisition of 51.4% of Interconexión Eléctrica S.A. (ISA), enhance its portfolio in energy transmission and real-time system management, along with well-established operations in the Americas.

Vision for the Future

With operations stretching across key areas in the Americas, including the United States, Brazil, and Mexico, Ecopetrol is strategically positioned in diverse regions. It holds significant stakes in drilling and exploration ventures and is expanding its reach within the power transmission sector through subsidiaries in Brazil, Chile, Peru, and Bolivia.

The successful execution of this loan agreement will support Ecopetrol's ongoing projects and assist in maintaining its competitive edge in a dynamic industry landscape. The financial framework provided by Banco Santander will not only bolster its operational effectiveness but will also enable the company to pursue future growth opportunities.

Forward-looking statements in this announcement highlight risks pertaining to market conditions, internal performance dynamics, and broader economic factors. Ecopetrol acknowledges these potential challenges and aims to address them through strategic planning and active market engagement.

For further information on this loan agreement or financial details, interested parties may reach out to Ecopetrol's Capital Markets department, managed by Carolina Tovar Aragón, or the Corporate Communications department in Colombia, overseen by Marcela Ulloa for timely updates and inquiries.

Conclusion

Today’s news marks a significant milestone for Ecopetrol S.A. as it reaffirms its financial stability and commitment to growth in the challenging energy sector. With a clear strategy and robust support from the international financial community, Ecopetrol is poised to navigate the future effectively.