Colombia authorizes oil producer Ecopetrol to arrange $1 bln loan

(Reuters) – Colombia’s Ministry of Finance has authorized state-controlled energy company Ecopetrol (ECO.CN) to arrange a line of credit worth up to $1 billion with international lenders, the company said on Monday.

The loan will be provided by Deutsche Bank AG (DBKGn.DE), Banco Inbursa S.A., Foreign Trade Bank of Latin America S.A. (BLX.N) and ICBC Standard Bank Plc (SBKJLS.UL), Ecopetrol said in a statement.

The loan has a seven-year term and includes a variable interest rate previously disclosed between the lenders and Ecopetrol, the company said, without specifying the rate.

The loan will see the disbursement of $800 million in the coming days, with an option to draw down an additional tranche of $200 million in the following 90 days, Ecopetrol added.

The loan will help fund Ecopetrol’s investment plan for this year, the company said.

Ecopetrol previously reported it will invest between around $6.1 billion and $7.2 billion this year to speed the transition toward renewable energies and help Colombian maintain energy self-sufficiency, among other investments.

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