Ecopetrol’s share price is at pandemic levels

Ecopetrol’s stock closed yesterday at a price of $1,740 and fell 1.14% With which the price of the company’s paper was at levels seen in the pandemic, when due to global contagion there was an almost total paralysis of economic activity due to the confinements that were ordered to prevent further infections.

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This situation has only demonstrated a devaluation of the title this year, which reaches 26.1% driven by international market factors and additionally by the government policies that They seek to discourage activityas well as by factors such as announcements to abandon businesses or make decisions against corporate governance.

And despite all this, Ecopetrol issued foreign public debt bonds for US$1.75 billion in international markets on Wednesday, within the framework of its refinancing strategy and debt optimization.

The bond issue, which was carried out under authorization from the Ministry of Finance, was carried out to finance the total repurchase of bonds maturing in 2026 and the prepayment of obligations.

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The rating agency Fitch Ratings said it sees no impact on the rating of the announcement of Ecopetrol’s senior unsecured notes due 2032 for up to US$2 billion, rated ‘BB+’.
Ecopetrol’s ratings reflect its close ties to the Republic of Colombia (Issuer Default Ratings in Foreign and Local Currency, BB+/Stable), which owns 88.5% of the company.

In recent days, Bancolombia updated the report on its Top Picks portfolio for the month of October and said that it does not present changes in its composition. However, he added that the weight of Ecopetrol increased (+5%) but he warned that the increase in weighting does not imply that the risks have gone away.

Foreign investors continue to be net sellers, in addition to the fact that the international bank JP Morgan reduced the recommended price on Ecopetrol.

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HOLMAN RODRÍGUEZ MARTÍNEZ
Portfolio