COLOMBIA · UTILITIES
Key Facts
- The deal US$1 billion in one seven-year dollar tranche due 2033, sold on Thursday 5 November 2026.
- Demand Orders were about twice the amount offered, from the US, Canada, Europe, Asia and Latin America.
- Ratings Moody’s rates EPM Baa3 with a negative outlook; Fitch rates it BB, below investment grade.
- Purpose Strengthen liquidity and pre-fund financing needs expected in 2027, EPM says.
- Exchange rate COP3,221.19 per US$1, Colombia’s official rate for 5 November 2026.
- Power Index Colombia ranks 6th of 14 in The Rio Times Latin America Power Index, with 51.1 points (November 2026 edition).
EPM bonds worth US$1 billion were sold to international investors on Thursday 5 November, the Colombian utility reported. The seven-year dollar notes mature in 2033 and drew orders about twice the amount offered.
EPM, short for Empresas Públicas de Medellín, is owned by the city of Medellín and runs power, water and gas networks. It says the money will strengthen its cash position and cover needs expected in 2027.
What EPM Sold
EPM sold a single tranche of US$1 billion in dollar bonds due in 2033, EPM said. The notes were sold in the international bond market.
Buyers came from the United States, Canada, Europe, Asia and Latin America, and orders reached about twice the amount offered. EPM’s general manager, John Maya Salazar, said the response reflects support for the company’s business model.
Why EPM Needs the Money
EPM says the proceeds will strengthen liquidity, meet medium-term financial needs and pre-fund requirements expected in 2027. It also wants to get ahead of financial pressure from hydrological conditions in the power sector through 2027.
Moody’s, a credit rating agency, wrote in May that EPM faces a large 2027 refinancing tied to an international bond of COP4.5 trillion (US$1.40 billion). EPM’s own report shows COP4.17 trillion (US$1.29 billion) in peso notes outstanding abroad at 30 June.
Where EPM’s Debt Stands
At 30 June 2026, EPM had US$1.575 billion in dollar bonds outstanding abroad, plus COP4.17 trillion (US$1.29 billion) in peso notes. The new US$1 billion issue adds to that total unless it is used to repay older debt.
Moody’s expected EPM’s credit metrics to weaken in 2026 and 2027 as debt rises to fund investment. It cited higher interest rates and a possible El Niño weather event as extra risks.
What the Ratings Say
EPM’s own investor page lists Moody’s at Baa3, the lowest investment-grade level, with a negative outlook dated 27 October 2026. Fitch cut EPM’s international rating to BB, a speculative grade, on 22 December 2025.
Moody’s gave the new bonds Baa3 and Fitch gave them BB, matching EPM’s issuer ratings. A negative outlook means the next rating move is more likely to be down than up.
In Plain English, Who Is Who
EPM is a public utility group headquartered in Medellín, Colombia’s second city, and the city is its only shareholder, according to Moody’s. It also runs the Hidroituango dam on the Cauca River, which is still being completed.
Moody’s and Fitch are agencies that grade the risk that borrowers will not repay. Our earlier reports cover EPM’s falling payments to Medellín and an audit finding at its Afinia unit.
What It Means for You
For US bond investors, the deal shows that a Colombian city-owned utility can still raise US$1 billion in dollars despite a BB rating from Fitch. Orders came partly from US investors, so American funds took part in the deal.
Residents of Medellín depend on EPM’s dividends, which Moody’s says have historically made up about 25% of the city’s revenue. EPM’s cash position therefore matters to the city’s budget.
What Is Not Known
The interest rate and price of the notes are the main open terms. EPM can give the final terms in its filing with Colombia’s financial regulator.
It is not yet known whether the rating agencies will change their outlooks after the sale. Moody’s, which holds a negative outlook on EPM, can answer at its next review.
More: Latin America news in English, every day from The Rio Times.
Frequently Asked Questions
How Much Did EPM Raise in Its Bond Sale?
EPM sold US$1 billion in seven-year dollar bonds due in 2033. The sale took place on Thursday 5 November 2026.
Who Bought the EPM Bonds?
Investors in the United States, Canada, Europe, Asia and Latin America placed orders. Demand was about twice the amount offered.
What Will EPM Do With the Money?
EPM says it will strengthen liquidity, meet medium-term financing needs and pre-fund requirements expected in 2027. It also wants to get ahead of financial pressure from hydrological conditions through 2027.
What Is EPM’s Credit Rating?
Moody’s rates EPM Baa3 with a negative outlook, and Fitch rates it BB. Baa3 is the lowest investment-grade level, while BB is below it.
Sources: EPM, credit ratings page (Moody’s and Fitch international ratings), accessed 6 November 2026; EPM, periodic report for the second quarter of 2026, 19 August 2026; Moody’s, credit opinion on EPM (hosted by EPM), 29 May 2026; Superfinanciera of Colombia, official representative market rate (via datos.gov.co), 5 November 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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