(Bloomberg) -- A bond sale from Ecopetrol SA is up in the air after Colombia’s electoral council opened an investigation into President Gustavo Petro and the state-oil company’s top boss.
Banks working with the company had yet to finalize the $1.75 billion deal as of midday Wednesday, a day after the process began, according to people familiar with the matter. Terms for the notes, including the yield, were set and the deal was expected to price on Tuesday.
Bankers are now sounding out investors on their appetite for the debt, said the people, who asked not to be identified discussing private details. It was unclear whether they plan to restart the process or pick it up where they left off Tuesday, the people said.
A spokesperson for Ecopetrol said that the transaction is ongoing and that they will provide an update through a regulatory filing when information becomes available. JPMorgan Chase & Co., one of the leads on the deal, declined to comment. While representatives for the other two — BBVA Securities Inc. and Santander US Capital Markets — didn’t reply to messages seeking comment.
The delay comes after magistrates at the electoral council on Tuesday voted to investigate an alleged breaching of financial limits of Petro’s 2022 presidential campaign, which was run by Ricardo Roa. Roa was later appointed by Petro as the driller’s chief executive, a post he’s held since April 2023.
Petro dismissed the probe as “the start of a coup” that goes against the constitution.
Sovereign dollar bonds from Colombia slipped across the curve on Wednesday, while most Ecopetrol notes were also down. The oil company bonds due in 2043 fell 2.6 cents to 90 cents on the dollar, according to Trace data.
Ecopetrol was attempting to tap international markets for a second time this year to fund a buyback of existing debt.
--With assistance from Michael Gambale and Andrea Jaramillo.
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