Ecopetrol SA Enhances Sustainable Financing with Public Bond Program Amendment
- Ecopetrol S.A. amends its bond program to include sustainable performance-linked bonds, enhancing its financing strategy.
- The amendment allows for in-kind payments and reopens previous issuances, expanding Ecopetrol's capital market options.
- Ecopetrol's commitment to sustainability positions it as a leader in responsible energy practices amid evolving industry challenges.
Ecopetrol Advances Sustainable Financing Through Bond Program Amendment
Ecopetrol S.A. receives key authorization from the Financial Superintendency of Colombia (SFC) to amend its public bond issuance and placement program (PEC) via Resolution 1139, dated June 11, 2025. This significant development marks a strategic shift towards sustainable finance, as the amended program now includes the issuance of local public bonds linked to sustainable performance, encompassing green, social, sustainable, and blue bonds. This move aligns with Ecopetrol’s commitment to decarbonization and energy transition, reflecting its proactive approach to environmental considerations in its financing activities.
The newly introduced amendment, formalized in Addendum No. 5, not only enhances Ecopetrol’s bond offerings but also provides flexibility for investors through in-kind payments. The program also reopens previous bond issuances and introduces bonds indexed to the Real Value Unit (UVR) and the Representative Market Exchange Rate (TRM). Since its initial bond issuance in August 2013, which successfully raised COP 900 billion, Ecopetrol retains the capacity to issue up to an additional COP 2.1 trillion in bonds and commercial papers, thereby significantly expanding its capital market options. This strategic financial maneuver is expected to bolster the company’s funding avenues as it navigates the evolving energy landscape.
As Colombia's largest company, Ecopetrol plays a critical role in the nation’s economy, employing over 19,000 individuals and accounting for more than 60% of the country’s hydrocarbon production. The company’s recent acquisition of a 51.4% stake in ISA enhances its involvement in energy transmission and infrastructure projects, further solidifying its position in the market. Ecopetrol’s international footprint includes exploration and drilling operations in the U.S., Brazil, and Mexico, alongside a strong presence in power transmission through ISA across South America, which augments its diverse portfolio in telecommunications and road concessions in Chile.
In addition to the bond program amendment, Ecopetrol remains committed to keeping the market informed about any future bond issuances under the PEC. This transparency is essential as the company seeks to align its financial strategies with broader sustainability goals, positioning itself as a leader in responsible energy practices within the industry. The ongoing developments indicate Ecopetrol’s dedication to innovation in financing while addressing the challenges of energy transition and sustainable development.
