EC - Ecopetrol wins approval for up to $1.2B contingent credit line

Ecopetrol (EC +2.2%) opens higher after Colombia's Ministry of Finance and Public Credit authorized the execution of a contingent credit line up to $1.2B. Ecopetrol says the proceeds from the facility may be used for general corporate purposes, including strengthening of its liquidity position in case of eventual organic growth opportunities and risk mitigation in connection with unexpected fluctuations in oil prices. Separately, Ecopetrol's board authorizes the submission of a binding offer to buy the Ministry of Finance and Public Credit's 51.4% stake in the Interconexión Eléctrica utility. The ISA acquisition will increase Ecopetrol's geopolitical risks since it expands the company's assets into Brazil, Chile and Peru, which are all facing political questions, Daniel Thurecht writes in an analysis posted earlier this summer on Seeking Alpha.

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Ecopetrol wins approval for up to $1.2B contingent credit line