Ecopetrol Wants Pesos in Debt Mix

Colombia’s Ecopetrol plans to make use of the country’s domestic debt markets in the immediate future. “We have a lower cost of indebtedness in US dollars, but given our revenue structure, it is important to have funding in pesos and in dollars,” says CFO Adriana Echeverri. The oil producer plans to raise up to COP1trn ($500m) in local markets. Echeverri says rates are low in Colombia, like in the US, consistent with the general global trend. The company is still choosing banks for the deal, she says, and will hire them once regulators have approved a transaction. She declines comment on possible maturities. The company will also seek peso financing for a portion of the $4.2bn Oleoducto Bicentenario pipeline project. Ecopetrol is choosing a partner from among 14 interested parties – including Pacific Rubiales and Petrominerales –and should decide by the end of the month. The joint venture will seek a certain portion of funding in debt markets, Echeverri says. New shares for the public are still in the cards, as Ecopetrol can sell another 9.9% to bring the float to 20%. “The transaction depends on the rhythm of our investments – it could be next year, or 2012,” says CEO Javier Gutierrez. Gutierrez declines to comment on the possibility of a return to the dollar bond markets, following 2009’s successful $1.5bn debut. Echeverri and Gutierrez spoke to reporters in New York Monday.