Ecopetrol Rumored Picking Bond Duo

Colombia’s Ecopetrol, preparing a dollar bond to likely come in the second half of this year, is rumored to have selected JPMorgan and Barclays as managers on the deal, according to Colombia-based DCM sources. Officials at the state-owned oil producer and its presumed leads decline to comment. Ecopetrol, which has no financial debt, has been looking to boost the efficiency of its balance sheet through dollar bonds, peso notes and loans. Shareholders have approved a $4.1bn shelf for combined bond issuance in international and local markets. A $500m plus 10-year USD deal and local transaction of up to COP3trn in size, with multiple tenors, are expected. In May Ecopetrol raised COP2.2trn ($994m) via a 7-year loan from a group of local banks, priced at 400bp over DTF.