Colombia's majority state-owned oil company Ecopetrol on Dec. 20 said it has secured a $1 billion loan with international banks as part of its 2023 debt refinancing program.

The Bank of Nova Scotia will supply $700 million of the loan, while Sumitomo Mitsui Banking Corp. will supply $300 million, Ecopetrol said in a statement.

The loan has a term of five years, with repayments due in four semi-annual installments during its last two years, as well as a variable interest rate based on the secured overnight financing rate plus 210 basis points, Ecopetrol said.

The new loan will be used to pay a previous credit arrangement worth $665 million with Mizuho Bank LTD, The Bank of Nova Scotia and Banco Sabadell, the company said.

The loan will also be used to make payments on maturing credit for the company's refinery in the Caribbean city of Cartagena, Ecopetrol said.