Colombia’s Ecopetrol Sells $2 Billion in Bond Market Return

  • State oil driller is first major LatAm company to sell in 2023
  • Company was cut to junk in 2021 following sovereign downgrade
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Colombia’s state oil company paid a heavy premium to return to the global bond market for the first time since 2021 as rates continue to rise for emerging-market borrowers.

Ecopetrol SA sold $2 billion of 10-year, US dollar-denominated notes with a coupon of around 9%, around 539 basis points over similarly dated Treasury notes, according to people familiar with the matter. The driller last sold benchmark bonds in October 2021 at a spread of 307 basis points.