Treasury authorizes ISA to extend term and rate of loan with Transelca

The Ministry of Finance and Public Credit authorized Interconexión Eléctrica S.A. E.S.P. (ISA) to enter into Addendum number 4 to the internal loan agreement it maintains with Transelca S.A. E.S.P., for $31,908,262,017.43. The authorization is contained in Resolution number 2107 of 2026, issued on September 18, 2026, and published in the Official Gazette number 53,634 on Monday, September 21, 2026, on page 1.

The operation was classified as internal public debt management (OMD), a figure that, according to article 2.2.1.1.2 of Decree number 1068 of 2015, comprises operations that do not increase the net indebtedness of the state entity and contribute to improving the debt profile in terms of term, interest rate, or foreign currency exposure. The decree itself specifies that these operations do not constitute new or additional financing and do not affect the borrowing limit.

The administrative act is based on article 2.2.1.4.2 of Decree number 1068 of 2015, which requires authorization from the Ministry when the underlying public credit operation has already been authorized by that portfolio, and on articles 5 and 6 of Law 781 of 2002, which subject the modifications of these contracts to the approval of the General Directorate of Public Credit. The resolution was signed by Luis Alexander López Ruíz, Deputy Director of National Internal Financing, acting in the functions of the General Director of Public Credit and National Treasury.

What the resolution exactly authorizes

• To enter into Addendum number 4 to the Internal Loan Agreement, identified with number 071 05 25/10/2005.
• To modify literals b) “Total Term and Amortization” and c) “Remunerative Interest” of the Second Clause of the contract.
• To maintain the operation for up to $31,908,262,017.43 (thirty-one billion nine hundred eight million two hundred sixty-two thousand seventeen pesos and forty-three cents).
• To subject the financial terms and conditions to the draft approved via the official letter with filing number 2-2026-064375 dated September 10, 2026.

Background of the contract

The link between both companies dates back to December 15, 2005, when they signed the Internal Loan Agreement for up to COP$45,498,488,224.91, intended to meet cash flow needs for that year, in development of Resolution number 2746 of November 3, 2005. Since then, the contract has been modified on four occasions:

• Addendum number 1, dated June 27, 2006, which agreed to the partial prepayment of the credit using resources from the reimbursement of contributions derived from a capital reduction.
• Addendum number 2, dated December 23, 2009, which modified the First Clause and literals b) and c) of the Second Clause.
• Addendum number 3, dated October 10, 2013, which adjusted the term, amortization, and remunerative interest, and added a paragraph to the Fourth Clause.
• Addendum number 4, now authorized.

Previous procedures and subsequent obligations

ISA requested authorization through communications 1-2026-027273 of March 12, 2026, and 1-2026-030019 of March 18, 2026, and submitted the Technical Justification Document required by article 2.2.1.5.2 of Decree number 1068 of 2015. The Risk Sub-directorate, in memorandum number 3-2026-005080 of March 30, 2026, considered the operation viable, concluding that it does not generate an increase in the balance of the obligation and contributes to improving the company’s debt profile.

The Legal Vice President of ISA certified on August 14, 2026, that the company’s legal representative has the legal capacity, without limit on the amount and without requiring authorization from the Shareholders’ Assembly or the Board of Directors, to enter into this type of contract. ISA is a mixed public services company, constituted as a commercial joint-stock company of national scope and linked to the Ministry of Mines and Energy, according to Public Deed number 1,400 of May 3, 2022, from the Fifth Notary Office of the Medellín Circle.

Once the addendum is perfected, ISA must request the General Directorate of Public Credit and National Treasury to include the operation in the Public Debt System (Single Database) and send a copy of Addendum number 4 within the following ten (10) calendar days, pursuant to article 16 of Law 185 of 1995, as modified by article 13 of Law 533 of 1999. The resolution takes effect from its publication in the Official Gazette.

The authorization allows ISA to reschedule the term and rate of an obligation with Transelca without resorting to new indebtedness, at a time when the maturity profile and financial cost of mixed companies in the electricity sector are closely monitored by the market. The registration of the operation in the Single Database will allow for the verification of its real effect on the consolidated debt of the sector.

Source: Official Gazette number 53,634, September 21, 2026, section I (Resolutions of the Ministry of Finance and Public Credit), p. 1 (official reference: Resolution number 2107 of 2026).