MercoPress. South Atlantic News Agency

Colombia's oil company raises funds in bonds market and plans to cut production

The bonds with a 7% yield were oversubscribed by two-and-a-half times, with some 250 investors bidding a total of US$ 5 billion in the issuing round, Ecopetrol said.

Colombia’s Ecopetrol said on Monday it raised US$ 2 billion through more than a doubly subscribed bond issue. Majority state-owned Ecopetrol issued 10-year paper due April 29, 2030, with a 7% yield.

 On Friday, Ecopetrol cut guidance for its first-quarter results and said it would look to raise money via the bond issue because of the fall in oil prices caused by the spread of the new coronavirus.

The bonds were oversubscribed by two-and-a-half times, with more than 250 investors bidding a total of US$ 5 billion in the issuing round, Ecopetrol said.

The oil company is watching market movements and may make further reductions to its investment plan for this year, it said last week. Ecopetrol also said it may cut its 2020 production target, which is currently in a range of 745,000 and 760,000 barrels of oil equivalent per day.