Colombia's state-owned oil producer Ecopetrol has obtained approval from the Ministry of Finance to arrange a $1 billion credit facility with international lenders.
In a statement, Ecopetrol said the loan will be provided by Deutsche Bank, Banco Inbursa, Foreign Trade Bank of Latin America, and ICBC Standard Bank, and carries a variable interest rate.
The credit line has a seven-year tenor. Ecopetrol expects an initial disbursement of $800 million in the coming days, with the potential to draw another $200 million within the subsequent 90 day period.
Proceeds from the loan will go towards financing Ecopetrol's investment plan for 2022. The company previously outlined plans to invest between $6.1-7.2 billion this year to accelerate its transition into renewable energies and maintain Colombia's energy independence.
As a state oil firm, Ecopetrol is playing a pivotal role in Colombia's energy transition away from fossil fuels. The secured credit facility will provide funding to support investments aimed at developing greener alternatives and ensuring continued secure energy supply.
