Ecopetrol Said to Postpone $1.75 Billion Bond Sale amid Probe Involving CEO

Ecopetrol SA postponed an offer to sell $1.75 billion of dollar bonds after Colombia’s electoral council launched an investigation involving the nation’s president and the state oil driller’s chief executive officer, according to people familiar with the matter. 

The company decided against moving forward with the transaction this week, though it may consider returning to the market in the future, the people said, asking not to be identified as the decision hasn’t been made public. 

In reply to a request for comment, Ecopetrol said the process hasn’t ended and that any relevant information will be released in a regulatory filing. JPMorgan Chase & Co., one of the leads on the deal, declined to comment. Representatives for the other two — BBVA Securities Inc. and Santander US Capital Markets — didn’t reply to messages seeking comment. 

Ecopetrol’s American depositary receipts rose 1.6 percent in New York Thursday, snapping a two-day losing streak, while bonds edged lower, according to Trace data.

The company, which is majority owned by the Colombian government, opened the sale process on Tuesday, seeking to borrow from capital markets for the second time this year to fund a debt buyback. Terms were set, including a yield of 7.65 percent, but the deal never priced, according to the people.  

The decision to postpone the offering comes after electoral council magistrates started an investigation into an alleged breach of campaign financing limits, naming President Gustavo Petro and Ecopetrol CEO Ricardo Roa as targets. Roa ran Petro’s 2022 presidential campaign before being appointed to the Ecopetrol post last year. 

After an extraordinary meeting, Ecopetrol’s board on Wednesday said it supports Roa and will continue to monitor the investigation.