Ecopetrol to provide up to $ 4 billion international loan

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BOGOTA, Aug. 14 (Reuters) – Colombian state energy company Ecopetrol will agree to provide a loan of up to $ 4 billion from international banks to finance the purchase of a government stake in ISA conglomerate.

On Wednesday, Ecopetrol signed a deal with Colombia’s Treasury Department to buy a 51.4% government stake in ISA for 14.2 trillion pesos ($ 3.7 billion).

The company has now received clearance from the ministry to secure loans from international banks Banco Santander, Citibank NA, JPMorgan Chase NA and Bank of Nova Scotia, Ecopetrol said in a statement late Friday.

The loan, which will involve 25% of each bank, must be repaid within two years of signing the contract and will include interest based on a three-month Libor rate plus 80 basis points with an initial cumulative commission of 30 basis points, Ecopetrol said. …

Ecopetrol is the largest company in Colombia. It produces most of the South American country’s oil and owns two of the most important refineries as well as much of the pipeline network.

ISA owns energy, road and telecommunications operations in Colombia, Brazil, Chile, Peru, Bolivia, Argentina and Central America through 51 subsidiaries and subsidiaries. ($ 1 = 3,830.25 Colombian pesos) (Reporting by Oliver Griffin; editing by Daniel Wallis)

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