Milbank LLP advised the underwriters in connection with the US$2 billion SEC-registered bond offerings by Ecopetrol S.A., a Colombian mixed-economy oil and gas company.
The two-part transaction included a 10-year tranche of US$1.25 billion 4.625% notes due 2031 and a 30-year tranche of US$750 million 5.875 bonds due 2051. The proceeds will be used to prepay a portion of the outstanding principal amount of a $4 billion acquisition loan used to finance Ecopetrol S.A.’s acquisition of Interconexión Eléctrica S.A.
The Milbank deal team was led by Global Capital Markets partner Carlos Albarracín along with associates Pablo Richards, Gonzalo Guitart, Jesus Narvaez, Santiago Freyre and Oscar Campos.
Mr. Albarracín said: “We are pleased to have once again advised the underwriters on an Ecopetrol international bond offering, which plays a major role in Colombia’s economy, which is still recovering from the effects of COVID-19. We hope this will pave the way for more capital markets offerings by Colombian issuers in the midst of current challenges and uncertainty in the international capital markets.”
Milbank continues to have a strong presence in Colombia and a deep client base in the country. Milbank has previously represented the lenders in a $4 billion bridge acquisition loan to finance Ecopetrol’s acquisition of ISA, as well as the underwriters in several SEC-registered offerings by Ecopetrol, including the underwriters in another $2 billion bond offering by Ecopetrol in 2020. The firm has also advised Grupo Energía Bogotá (GEB) in its $400 million offering of 4.875% senior notes due 2030, the initial purchasers in the $750 million dual-currency corporate bond offering by Empresas Públicas de Medellín E.S.P. (EPM), Colombia's largest power company, the 144A Social Project Bond for Puerta de Hierro Toll Road in Colombia, and the $1.76 billion bank/bond financing by EnfraGen.
