Colombia's state oil company is selling dollar-denominated notes maturing in about seven years to help finance the buyback of existing debt due in 2026 and to prepay part of a bank loan.

Ecopetrol has gone to the international debt markets for the second time this year to buy back bonds worth US$1.25 billion (1.14 billion euros) from investors.

The oil company is selling dollar notes maturing in about seven years to help finance the buyback of existing debt due in 2026 and to prepay part of a bank loan. The new debt was expected to be priced on Tuesday and yield around 8% according to initial forecasts.

Ecopetrol last sold bonds abroad in January, raising US$1.85 billion (1.687 billion euros) to help finance the purchase of debt with a shorter maturity.

The repurchase offer expires on October 15. BBVA Securities, JPMorgan Securities and Santander US Capital Markets are managing the new agreement.

Fitch Ratings has assigned a "BB+" rating to Colombian state oil company Ecopetrol's new debt issuance of up to US$2 billion in senior unsecured bonds due in 2032, the rating agency announced on Tuesday.

"Ecopetrol's ratings reflect the company's strategic importance for the country, as well as its ability to maintain a solid financial profile," the agency said in a statement.

He added: "The ratings also reflect the Colombian government's strong incentive to support Ecopetrol in the event of financial difficulties, given the company's strategic importance for the country."