& Tobago




Very usefull links



The Global Barrel

Tiempo Culural

Gustavo Coronel


Le Blog des
Energies Nouvelles

News Links




Dow Jones



Views and News






ISA CEO satisfied with Ecopetrol's assuring of no meddling if buys the company 

Interconexion Electrica SA

Bernardo Vargas

- ISA plans to sell $400 million in bonds overseas before summer
- Colombia-based company expects to sell Telecom unit this year

By Andrea Jaramillo and Oscar Medina/Bloomberg

Petroleumworld 03 29 2021

Electricity utility Interconexion Electrica SA will retain its managerial independence if it gets bought by Colombia’s state oil company, according to Chief Executive Officer Bernardo Vargas.

Ecopetrol SA is in talks with the Finance Ministry to buy a 51.4% stake in the electricity transmission company, known as ISA, in a deal worth around $4 billion.

“They recognize that if they interfere in ISA’s corporate governance or managerial autonomy they are going to be shooting themselves in the foot,” Vargas said in a video interview Friday.

Questions about ISA’s operational independence are “a valid concern in the mind of many people and in our minds as well,” Vargas said. However, Ecopetrol’s CEO and chairman, as well as Finance Ministry officials, have provided reassurances publicly and in private that they have no intention of destroying value by interfering in the company’s plans, Vargas said.

Shares in ISA have returned 14% since the start of 2020, compared to a 21% drop for the benchmark Colcap index.

READ MORE: Ecopetrol CEO Defends $4 Billion Deal That Unnerved Investors

Bond Sales

After selling so-called green bonds in the Colombian market last year, ISA plans to tap the overseas market by selling $400 million of debt “before the U.S. closes for summer vacation,” Vargas said. This is to refinance other debt, he added.

The company wants to keep borrowing low enough to ensure that it could take advantage of any deals that might present themselves, Vargas said.

“We are very careful in managing our debt because that’s the dry powder that we have for acquisitions or for opportunities that come up in the market,” he said.

Currently, the company has a “very high capacity” to expand, since net debt is less than four times earnings before interest, taxes, depreciation, and amortization, or EBITDA, he said.

Hot Market

ISA is looking to continue to expand its network of power transmission lines as Latin America expands production of renewable energy.

Earlier this year, it closed a deal for the acquisition of Brazil’s Piratininga-Bandeirantes Transmissora de Energia for approximately $277 million, and last year bought Orazul Energy Group in Peru, allowing it to increase its share in the Andean nation’s electricity transmission to more than 70%.

The Medellin-based company also operates more than 1,000 kilometers of highways in Colombia and Chile.

Earlier on Friday, ISA announced plans to sell its telecommunication and information technology unit to focus on its core businesses of power transmission and road concessions.

The sale of 100% of the shares in InterNexa is expected to happen this year, the company said in a statement. Vargas said he is prohibited from saying how much the sale is expected to raise.

The sale takes advantage of high investor appetite for telecommunications and IT in the region, he added.

“The market is hot for these types of assets right now,” he said. “We think it’s a very good time to sell.”


By Andrea Jaramillo and Oscar Medina from Bloomberg
03 26 2021



Editor & Publisher:Elio Ohep /
Contact Email:

CopyRight © 1999-2021, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2021, Petroleumworld   / Elio Ohep - All rights reserved

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.