Pricing Heard on Ecopetrol Local Bond

Ecopetrol’s COP1trn ($543m) local bond issue will have tenors of 5,7,10 and 30 years at various spreads over the IPC benchmark, according to bankers away from the deal. The issue is expected to price no later than December 2, though could price as early as this week, the bankers say. Correval and Valores Bancolombia are leading the sale of the AAA rated bonds. One banker away from the deal says that the 5-year notes could price at around IPC plus 3.0%-3.2%, the 7-year notes at around IPC plus 4.0%, the 10-year notes at around IPC plus 4.5% and the 30-year notes at IPC plus 5.0%. Proceeds from the sale will go to finance the Colombian oil giant’s capex plan, for which it has a budget of about $8.5bn.