Ecopetrol Prices $2 Billion of 2034 Notes to Refinance Debt

Ecopetrol said in a bond-pricing announcement on November 10, 2026 that it had priced US$2.0 billion of eight-year notes with a 7.875% coupon. Net proceeds are designated for a redemption of 2029 debt and full repayment of the short-term financing used for the Brava Energia acquisition.

The SEC-registered transaction was priced on November 9, 2026 and is expected to settle on November 12, 2026, subject to customary closing conditions. The notes were priced at 99.388% of principal to yield 7.980%, pay interest semiannually and mature on November 12, 2034. Announced ratings are Ba2 from Moody’s, BB- from S&P and BB from Fitch.

Ecopetrol reported a peak order book of approximately US$6.93 billion, about 3.5 times the principal offered, from more than 235 investors in the United States, Europe, Asia and Latin America. It characterized the resulting spread relative to the Republic of Colombia as its lowest in an international debt offering during the last five years.

Refinancing the 2029 Notes and Brava Debt

Ecopetrol plans to use the net proceeds to redeem US$810 million aggregate principal amount of its outstanding 8.625% notes due 2029 and repay the Brava acquisition financing in full. The 2029-note redemption is scheduled for November 19, 2026, with the final transaction size to be determined and communicated on that date.

The new notes’ 7.875% coupon is 75 basis points below the 8.625% coupon on the targeted 2029 notes, calculated from the two stated rates. The transaction therefore combines a lower-coupon bond refinancing with the repayment of floating-rate acquisition debt.

Management said the transaction replaces existing liabilities rather than increasing overall indebtedness, reduces near-term debt maturities, mitigates refinancing risk and preserves liquidity and financial flexibility. Colombia’s Ministry of Finance and Public Credit authorized the transaction on November 9, 2026.

Brava Financing and Debt Structure

The preliminary prospectus supplement dated November 9, 2026 supplies the background to that borrowing. Ecopetrol completed its share purchase and voluntary tender on August 17, 2026, acquiring a controlling voting interest of approximately 51% in Brava through Ecopetrol Brasil for aggregate consideration of approximately 5.6 billion Brazilian reais.

To finance the acquisition, Swiss subsidiary Ecopetrol Capital AG entered a short-term New York-law credit facility on August 5, 2026 and an intercompany loan with Ecopetrol Brasil. Ecopetrol guarantees the facility, which provides up to US$1.19 billion, matures approximately 360 days after disbursement and bears interest at three-month Term SOFR plus a margin that increases from 1.25% to 2.125%.

The new notes are general senior, unsecured and unsubordinated obligations, ranking pari passu with Ecopetrol’s other senior unsecured external indebtedness. Although Colombia owns 88.49% of Ecopetrol, the nation is not liable for the notes.

The prospectus puts consolidated indebtedness at 105 trillion Colombian pesos at June 30, 2026, all of it unsecured. That dated total precedes both the Brava acquisition and the new offering.

Subsequent changes listed in the document include approximately US$1.1 billion of Brava acquisition financing, approximately US$3.7 billion of Brava debt consolidated following the acquisition and approximately US$1.25 billion of additional borrowing by energy-transmission subsidiary ISA. Those changes sit outside the June debt-stock figure and are separate from the refinancing’s stated effect on overall indebtedness.

Because at least 5% of net proceeds may repay Brava facility debt extended by affiliates of Citigroup, J.P. Morgan, BBVA and Itaú, those underwriters have a disclosed conflict of interest under Financial Industry Regulatory Authority rules. BofA Securities agreed to act as a qualified independent underwriter.

The transaction is structured as a liability restructuring rather than new funding for Brava: proceeds are intended to replace short-term floating-rate acquisition debt and part of the 2029 bond stock with longer-dated fixed-rate debt. The final redemption amount will establish how much near-term bond debt is ultimately removed alongside the planned full bridge-loan repayment.