REFILE-UPDATE 2-Oil slide forces Ecuador to pay up on latest bond sale
(Corrects oil price in graf 9 to US$79.7 from US$79.7bn)
By Davide Scigliuzzo
NEW YORK, March 19 (IFR) - A dip in crude prices forced Ecuador to pay up on its latest bond sale Thursday, overshadowing the oil exporter's push to mend relations with international creditors and clean up its reputation as a serial defaulter.
Hurt by a 13% fall in oil prices since it began marketing the new bond sale earlier this month, the Andean nation has been forced to target a shorter maturity, a smaller size and a higher yield than originally expected.
The setback came in spite of the country's efforts to curb the negative impact of falling oil revenues on government finances and to improve relations with creditors after voluntarily defaulting on US$3.2bn of debt in 2008.
"They are trying to do the right thing, but I think oil prices are just moving in the wrong direction for them," said a Boston-based investor.
Sole lead manager Citigroup earlier this week was sounding out interest for a seven-year maturity at a yield of around 10%, according to two New-York based investors who met with the sovereign. The deal was expected to have a size of at least US$1bn. Continuación...