Colombia’s production, use of biofuels expected to fall 10% and 8.2% in 2020

Colombia’s production and use of biofuels is expected to fall this year due to impacts associated with the COVID-19 pandemic. The country’s biofuel imports are also expected to fall, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network. Lower fuel consumption and no changes in biofuel blend mandates are forcing lower ethanol and biodiesel production. Colombian production of fuel ethanol is expected at 400 million liters, down 11% from 2019, while consumption will fall 8%. Biodiesel production is expected to fall 9.8% (550 million liters), and consumption 8.3%.

Colombia to substitute some planned dollar financing for $1.3 bn in bonds

Colombia plans to substitute some of its planned 2020 financing in dollars for a local debt emission of about 5 trillion pesos ($1.28 bln), three market sources with knowledge of the plan told Reuters on Monday. The ministry will extend auctions of local so-called TES bonds until November in order to raise the projected funds. TES paper is the country’s second top source of financing after tax collection.

Avianca Holdings S.A. Receives U.S. Court Approval to Access $2.0 Billion Debtor-In-Possession Financing

Avianca Holdings announced that it has received approval from the U.S. Bankruptcy Court for the Southern District of New York to access its debtor-in-possession financing totaling just over $2.0 billion, consisting of a US$ 1.27 billion Tranche A senior secured financing and a $ 722 million Tranche B secured subordinated loan. The DIP financing includes approximately $ 1.2 billion of new funds ($ 881 million in Tranche A and $ 336 million in Tranche B).

Chevron concludes $5 bn Noble takeover, secures Colombia E&P return

Chevron has completed its $5 bn acquisition of Noble Energy in a deal that sees the US oil and gas major return to Colombia's upstream segment. The agreement means Chevron will operate the Colombia-3 and Guajira Off-3 blocks off the Caribbean coast with a 40% working interest. According to information on Noble's website, exploration drilling at Colombia-3 and Guajira Off-3 is expected to begin next year.

Productive activity in Colombia would have fallen 9.7% in the third quarter of 2020: Bancolombia

Bancolombia's Economic Research Group delivered a new analysis on the behavior of the Colombian economy. In Q3 2020, the country's productive activity would have fallen between 12.6% and 8.8%, with 9.7% being the central estimate of the variation. The bank´s GDP forecast -is 7.5% at the end of 2020, for which it is required that growth in the fourth quarter be around -6%. This scenario does not contemplate an eventual return of containment measures as a result of possible outbreaks of Covid-19.