Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

MILBANK REPRESENTS UNDERWRITERS IN $2B OFFERING BY COLOMBIA’S ECOPETROL

31-year notes take advantage of lowest long-term borrowing costs in a year; Milbank also advised on Ecopetrol’s $2.5B offering last September, one of largest Latin American issuances of 2013

Milbank, Tweed, Hadley & McCloy LLP represented underwriters Goldman Sachs and Deutsche Bank Securities in a $2 billion issuance of 31-year notes by leading Colombian oil and gas company Ecopetrol SA.  It’s the second multi-billion dollar debt offering by Ecopetrol since last September, another sign of surging investor interest in Colombia, which recently overtook Argentina as South America’s second-largest economy.

Global Securities partner Carlos Albarracín led the Milbank team in the latest transaction, in which Goldman and Deutsche Bank placed $2 billion of the 5.875% notes due May 2045.  Mr. Albarracín noted that demand was strong enough that Ecopetrol was able to lower the coupon by nearly 200 basis points (compared to Ecopetrol’s 2013 20-year notes), and issue only one tranche of 31-year notes.  The deal closed on May 28.

Carlos Albarracin
Carlos Albarracin

Ecopetrol, the largest oil and natural gas company in Colombia and supplier of nearly two-thirds the country’s crude oil supplies, is expected to use proceeds from the latest offering for general corporate purposes, including capital expenditures. Established in 1951, Ecopetrol is Colombia’s only vertical oil/gas producer, its operations extending from exploration and production to refining, transportation, distribution and marketing; it also operates in the petrochemical field.

In September 2013, Ecopetrol issued a three-tranche bond offering totaling $2.5 billion, one of the largest Latin American corporate debt issues for the year.  Milbank represented Bank of America Merrill Lynch and Morgan Stanley as underwriters in that transaction.

“Ecopetrol is taking strategic advantage of low long-term borrowing rates to tap international markets as part of its multi-year plan to expand globally,” said Mr. Albarracín. “Investor confidence in the company remains high as it has grown into one of the key oil and gas players in Latin America.  We’re pleased to have once
again played a key role in such a significant capital markets offering out of Colombia.”

Mr. Albarracín was assisted by Securities associates Jennifer Beaudry and Pablo Echeverri; Tax partner Andrew Walker and associate Erika Hauser; Washington DC- based partner Dara Panahy and associate Bijan Ganji; and international attorney Juan Turner.