The Colombian state energy company Ecopetrol announced on Thursday that it will prepay US$1.2 billion from a loan contracted in August last year with a group of international banks, for the purchase of the electric company ISA.
Ecopetrol signed a contract in August 2021 to acquire 51.4% of the outstanding shares of the ISA conglomerate for more than US$3.5 billion, as part of its strategy to become a comprehensive energy company.
“The resources will be allocated in their entirety to the advance payment of the credit originally contracted for the acquisition of Interconexión Eléctrica SA,” Ecopetrol said in a statement.
“With this operation, to date US$3.2 billion have been paid to the lending banks of said credit, leaving a remaining balance to be refinanced of US$472 million, maturing in August 2023,” he added.
The company claimed that transaction lowers 2023 refinancing needs and captures benefits from existing debt resources on competitive terms against market conditions.
ISA has operations in the energy, roads and telecommunications businesses in Colombia, Brazil, Chile, Peru, Bolivia, Argentina and Central America through 51 affiliates and subsidiaries.
Ecopetrol is the largest company in Colombia, generates most of the oil production in the South American country and owns the two main refineries and most of the network of oil and multi-purpose pipelines.