Canacol Bonds Rally as Ecopetrol Shows Interest in Assets

Published 9 May 2024, 21:21:32.308 GMT
By Vinicius Andrade and Nicolle Yapur

(Bloomberg) -- Bonds from Canacol Energy Ltd. extend a two-day rally after Ecopetrol CEO Ricardo Roa said the Colombian oil producer would consider buying Canacol’s assets in case that opportunity emerges.

* Dollar notes due in 2028 gain as much as 8.5 cents on the dollar to 52 cents on Thursday

** NOTE: From May 8, Ecopetrol Would Consider Buying Canacol Assets If Offered

* “The comments came as a positive surprise because we didn’t know Ecopetrol’s intention to buy gas assets in the short-term or that Canacol was looking to sell them,” said Lucror credit analyst Lorena Reich

* Canacol is scheduled to release 1Q24 results after the close

** “I do not believe that the reaction of the bonds is related to what they report today because the company has already anticipated that there would be further cash burn in Q2 before improving in H2,” Reich said

* NOTE: Canacol has been reaffirming it will make the next coupon payment due May 24 of about $14.4 million

* NOTE: Canacol Investors Fear Worst as Cash Woes Spur Major Selloff