Colombian state-controlled oil company Ecopetrol has obtained the Ministry of Finance and Public Credit (MHCP) authorization to implement a $500 million loan agreement with Banco Santander.

The loan, approved by Resolution 0910 on April 25, 2025, will have a five-year term and index for a guaranteed overnight financing rate (SOFR) rate.

The loan’s funds are specifically for non-investment expenses, consistent with MHCP’s resolution and Ecopetrol’s 2025 financing plan.

This financial transfer is part of the company's strategy to maintain its total debt/EBITDA (Earnings, Taxes, Depreciation and Amortisatoin) goals throughout the year.

Ecopetrol complies with all required internal procedures and approvals to enable MHCP to review and authorize the draft agreement, which will be governed by the laws of the State of New York.

The company reached a loan agreement of up to $250 million in August 2024 with Sumitomo Mitsui Banking Corporation, which has been authorized by MHCP through Resolution 2476.

The loan is expected to have a five-year term, with the principal due and variable interest rates. The funds will be used for non-investment expenditures, including repayment of financial obligations that should be reimbursed in 2026.

Reuters Ecopetrol is recently reported to be considering raising up to $2 billion in debt in 2025 to fund strategic investments.

The company is exploring financing avenues including bank loans and capital market tools to support potential acquisitions and new projects.

Ecopetrol is also evaluating continuity options for the Southern Caribbean gas project following Shell's exit.

Offshore assets include Kronos-1 of Gas, Purple Angel 1, Gorgon 1 and 2, and Glaucus 1, Purple Angel and Fuerte Sur blocks located within Col 5.

“Ecopetrol’s license to receive a $500 million loan from Banco Santander” was originally created and published by GlobalData-owned brand Offshore Technology.

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