In one of the largest cross-border bank financings on record for a Colombian company, Milbank, Tweed, Hadley & McCloy has represented a group of 8 international banks in providing a $1.925 billion loan agreement for Colombia’s state-owned oil and gas major Ecopetrol.
The financing, with a term of five years, will be used for general corporate purposes and support for the Ecopetrol’s investment plan.
Milbank Global Securities partner Carlos Albarracín acted as counsel to a lenders’ group including JPMorgan Chase, Citibank, Banco Santander, BNP Paribas, Mizuho Bank, Bank of America, HSBC Bank USA, and Banco Bilbao Vizcaya Argentaria.
“That this milestone loan package, involving such an impressive group of leading financial institutions, was executed so quickly demonstrates tremendous confidence in Colombia and its leading energy firm,” Mr. Albarracín said.
“Ecopetrol has become one of the biggest and most important oil & gas players in all of Latin America, and Milbank is pleased to once again have played a key role in significant financing on its behalf.”
Ecopetrol, which accounts for almost two-thirds of Colombia’s crude oil production, also has exploration and production operations in Peru, Brazil, and the Gulf of Mexico.
Milbank previously advised underwriters in two large capital markets offerings by Ecopetrol: In 2014 the firm represented Goldman Sachs and Deutsche Bank Securities in Ecopetrol’s $2 billion issuance of 31-year notes; and in 2013 the firm represented Bank of America Merrill Lynch and Morgan Stanley in a three-tranche bond offering totaling $2.5 billion.
In addition to Mr. Albarracín, the Milbank lender team included Alternative Investments partner Jay Grushkin and Tax partner Russell Kestenbaum; Finance associate Gavin McKeon; Tax associate Lysondra Ludwig and Corporate associate Victor Liang.
