Milbank LLP represented the underwriters, Goldman Sachs, J.P. Morgan and Scotia Capital, in connection with the $2 billion SEC-registered offering of notes due 2030 by Ecopetrol, Colombia’s state-owned oil and gas major. This marks the first capital raise by Ecopetrol since 2016 and one of the few capital markets offerings by a Latin American non-financial company in the last two months, in the midst of the international health crisis, which has strongly contributed to the sharp decline in oil prices.
The Milbank deal team was led by Global Capital Markets partner Carlos Albarracín, along with associates Pablo Richards, Matthew Kusel, and international attorneys Juan Pablo Aspe and Osvaldo Norte-Sabino.
Ecopetrol, which accounts for almost two-thirds of Colombia’s crude oil production, also has exploration and production operations in Peru, Brazil, and the Gulf of Mexico.
Mr. Albarracín said: “We are pleased to have once again represented the underwriters on an Ecopetrol international bond offering, which plays a major role in Colombia’s thriving economy. 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 underwriters in 7 SEC-registered offerings by Ecopetrol, as well as advised the initial purchasers in the $1.4B dual-currency bond offering and the COP$2.3 trillion (approximately US$750 million) Colombian Peso-denominated Rule 144A senior notes offering by EPM, TGI (Colombia’s largest gas transmission company) in the $750M Rule 144A/Reg S note offering and Grupo Energía Bogotá in the COP$1.925 billion (approximately US$669 million) first ever dual-track secondary equity offering by a Colombia state-owned company.
