Issuance of PyME CNV Guaranteed Class I Notes for $ 234,000,000 and Class II Notes for U$S 424,000 of Frigorífico General Pico S.A.
Counsel in the issuance of the PyME Guaranteed Class I Series I Notes for $2 34,000,000 and Class II Series I Notes for U$S 425,000, by Frigorifico General Pico S.A. due on January 13, 2025.
Adcap Securities Argentina S.A. acted as arranger of Class I Series I and Class II Series I Notes. Adcap Securities Argentina S.A. and Banco de Servicios y Transacciones S.A. acted as placement agents of the Notes. Fid Aval S.G.R., Crecer S.G.R., Integra Pymes S.G.R., Potenciar S.G.R., Acindar Pymes S.G.R. and Mills S.G.R. acted as guarantee entities of the Notes.
Lithium export reimbursement has been finalized
On January 16, 2023, Resolution No. 15/2023 (the "Resolution") was published in the Official Gazette whereby the Federal Ministry of Economy (the "Ministry") proceeded to waive the export reimbursement of the goods classified as lithium, hydroxide and lithium oxide, lithium chloride, and lithium carbonate.
The Resolution orders the secretaries of the Ministry to design the required administrative measure to waive the export reimbursement. Specifically, the Resolution impacts the following tariff positions: 19.90; 2825.20.10; 2825.20.20; 2827.39.60, and 2836.91.00 of the Mercosur Customs Tariff Code (N.C.M).
The Resolution will become effective on January 16, 2023.
Background information
As a reason for the issuance of the Resolution, the Ministry established that the lithium sector has registered exponential growth, both in terms of mineral prices -driven by a great global demand- and in the progress of the numerous projects that are located in the country.
Consequently, it considered that "taking into account the electro-mobility that caused a change in the market and that the international scenario had an abrupt growth in the demand for lithium that produced an exponential increase in the price and also in the profitability of the projects, it is understood that a stimulus such as the reimbursement has fulfilled the objectives for which it was opportunely established".
Before the enactment of the Resolution, the sector's companies received export refunds from the Federal Government ranging from 2.5% to 5% of sales. Meanwhile, the export duty of 4.5% for lithium compounds is maintained.
Data from the Federal Mining Secretariat ("FMS") regarding lithium
According to the FMS, Argentina has a lithium mining investment potential of approximately US$ 6,473 million. From 2020 to the second quarter of 2022, capital investment announcements for an approximate amount of USD 4,579 million have been registered. Current production is approximately 33,000 tons per year.
Regarding lithium export data, the latest Monthly Report (December 2022) of the FMS, states that "in the first 11 months of 2022 lithium sales abroad reached USD 620 million, growing 235% year-on-year and representing 18% of total mining exports. This export figure in historical terms represents this year's number one position for the first 11 months of a year, being 139% above the accumulated of the first 11 months of 2018 (the second historical year with the highest exported amounts). As for the quantities exported of lithium, in the accumulated so far this year they exhibited a growth of 4.5%."
For further information or questions on these issues, please contact Marcos Moreno Hueyo and/or Dolores Reyes.
Regulation of Distributed Generation Law of the Province of Buenos Aires
On January 11, 2022, Decree No. 2371/2022, complementary of Law No. 15,325 of the Province of Buenos Aires (the “Decree”), was published in the Official Gazette of the Province of Buenos Aires. Following the publication of the Decree, User-Generators of the Province of Buenos Aires, authorized to generate energy from renewable sources for self-consumption, may register in the Registry of Users-Generators of Renewable Energy of the Province of Buenos Aires (the “RUGER”, for its Spanish acronym, Registro de Usuarios-Generadores de Energía Renovable de la provincia de Buenos Aires) and benefit from tax exemptions related to Stamp Tax and Gross Income of such Province.
I. Legal Background
Law No. 27,424, passed by the National Congress on November 30, 2017, approved the federal regime that promotes distributed generation of renewable energy integrated into the public electricity grid (for additional information on Law No. 27,424, please see https://www.trsym.com/renewable-energy-regulation-of-distributed-generation-law-no-27424/?lang=en). Article 40 invites the provinces and the City of Buenos Aires to adhere to such law and pass any specific regulation.
Within such framework, Law No. 15,325, passed by the Congress of the Province of Buenos Aires on April 21, 2022, adhered to Law No. 27,424.
Law No. 15,325 declares of provincial interest distributed generation renewable energy generation, for self-consumption and eventual injection of energy surplus into the provincial grid.
Furthermore, by Law No. 15,325, the Province of Buenos Aires adheres to the promotional, tax, fiscal and financing benefits scheme set forth by Law No. 27,424.
II. Relevant aspects of the Decree
The most relevant aspects of the Decree are described below:
a. Enforcement authority
The Decree designates the Ministry of Infrastructure and Public Services (or any legal successor thereto) as the enforcement authority of Law No. 15,325. The enforcement authority will determine the technical, legal, economic, contractual, rate terms, and all other necessary matters that are necessary to allow the application of the distributed energy generation scheme in the Province of Buenos Aires.
Likewise, the enforcement authority is entrusted to enter into agreements with the Bank of the Province of Buenos Aires (Banco de la Provincia de Buenos Aires) to offer special promotional credit lines.
b. Definition of User-Generator
“User-Generator” is defined as the user of the public electricity distribution service of provincial or municipal distributors that installs renewable generation equipment for self-use, that may inject any surplus thereof to the grid, and meets the technical requirements determined by the enforcement authority. Large Users or self-generators of the Wholesale Electricity Market (WEM) are not included, as they are ruled by Law No. 27,424.
c. Creation of RUGER and issuance of a tax exemption certificate
The Decree creates the RUGER. The RUGER will be implemented for the registration of User-Generators, as determined by the enforcement authority, through the organization of a data base that enables access to the provincial tax exemptions established by Law No. 15,325 and special credit lines, as well as any other benefit or tax incentive that may be foreseen in the future.
For the purposes of processing the provincial tax exemptions set forth in article 4 of Law No. 15,325, the RUGER will issue a User-Generator certificate. In addition, the RUGER will notify ARBA of any certificate that is issued and receives from User-Generators, under the concession area of federal jurisdiction. Such certificate must contain surname and name, or company name, tax id (CUIT), NIS, address, code of the activity included in that benefit (according to the corresponding Nomenclator of Activities of the Tax on Gross Income, of NAIIB 18 approved by ARBA) or their equivalents codes under the Nomenclator of Economic Activities of the Federal Collection System (NAES) of the Arbitration Commission of the Multilateral Agreement (Comisión Arbitral del Convenio Multilateral), details of the respective exemption and term for which it is granted.
d. Taxes for which the exemption is granted and term
User-Generators registered under the RUGER are exempted from the following taxes for a period of twelve (12) years:
- Stamp tax: only applies to the power purchase agreements entered into by the distributor and the User-Generator, as long as the latter is registered in the RUGER, and such inscription is detailed in that agreement; and
- Tax on Gross Income: with respect to the injection of surplus renewable energy into the distribution network by the User-Generator.
For additional information, please contact Nicolás Eliaschev, Javier Constanzó and/or Rocío Valdez.
MSU Energy S.A.´s US$ 15.100.000 Series VII Notes Offering
Counsel to MSU Energy S.A. in the issuance of its 7.5% Series VII Notes for US$ 15,100,000, denominated, integrated and payable in U.S. dollars, maturing 24 months from the issuance date, under its US$ 285,000,000 Global Notes Program.
“San Cristóbal Servicios Financieros I” Financial Trust for AR$ 422,500,000
Deal counsel in the issuance and placement in Argentina of trust securities for AR$ 422,500,000 issued under the “San Cristóbal Servicios Financieros I” Financial Trust, in which San Cristóbal Servicios Financieros S.A. acted as trustor, TMF Trust Company (Argentina) S.A. acted as trustee, Banco Macro S.A. acted as arranger, First Corporate Finance Advisors S.A. acted as financial advisor and Macro Securities S.A.U. acted as placement agent.
“Wenance II” Financial Trust for AR$ 481,538,000
Deal counsel in the issuance and placement in Argentina of trust securities for AR$ 481,538,000 issued under the “Wenance II” Financial Trust, in which Wenance S.A. acted as trustor, servicer and collection agent, Adcap Securities Argentina S.A. as arranger, structuring agent, financial advisor and placement agent, and Rosario Administradora Sociedad Fiduciaria S.A. acted as trustee.
Legal Advice in the Issuance of Additional Series 6 Notes of CT Barragán S.A. for AR$ 58,577,648
Counsel to SBS Trading S.A., Balanz Capital Valores S.A., BACS Banco de Crédito y Securitización S.A., Banco de Servicios y Transacciones S.A., Invertir en Bolsa S.A., Banco Patagonia S.A., TPCG Valores S.A.U., BNP Paribas Sucursal Buenos Aires, Banco Mariva S.A., Allaria Ledesma & Cía S.A., Banco Santander Argentina S.A., HSBC Bank Argentina S.A., Industrial and Commercial Bank of China (Argentina) S.A.U., Banco de Galicia y Buenos Aires S.A.U., Cocos Capital S.A., Banco de la Provincia de Buenos Aires, Puente Hnos. S.A., Banco Hipotecario S.A., Banco Comafi S.A., Latin Securities S.A., Macro Securities S.A.U. and Industrial Valores S.A. as placement agents, in the reopening and public offering of 0% Additional Series 6 Notes for US$ 58,577,648 due May 16, 2025 of CT Barragán S.A. (“Additional Series 6 Notes”). Additional Series 6 Notes were issued on December 14, 2022 under the Global Notes Program for an amount of up to US$400,000,000.
Additional Series 6 Notes are denominated in U.S. Dollars and payable in Argentine Pesos, are additional to the Series 6 Notes issued on May 16, 2022, and have a personal guarantee, subject to a resolutory condition granted by YPF S.A. and Pampa Energía S.A.
SBS Trading S.A., Balanz Capital Valores S.A., BACS Banco de Crédito y Securitización S.A., Banco de Servicios y Transacciones S.A., Invertir en Bolsa S.A., Banco Patagonia S.A., TPCG Valores S.A.U., BNP Paribas Sucursal Buenos Aires, Banco Mariva S.A., Allaria Ledesma & Cía S.A., Banco Santander Argentina S.A., HSBC Bank Argentina S.A., Industrial and Commercial Bank of China (Argentina) S.A.U., Banco de Galicia y Buenos Aires S.A.U., Cocos Capital S.A., Banco de la Provincia de Buenos Aires, Puente Hnos. S.A., Banco Hipotecario S.A., Banco Comafi S.A., Latin Securities S.A., Macro Securities S.A.U. and Industrial Valores S.A. as placement agents of Additional Series 6 Notes Banco de Galicia y Buenos Aires S.A.U. also acted as Settlement Agent for Additional Series 6 Notes.
“CFA CRÉDITOS III” Financial Trust for AR$1,050,000,000
Deal counsel in the issuance and placement in Argentina of trust securities for AR$1,050,000,000 issued under the “CFA CRÉDITOS III” Financial Trust, in which Compañía Financiera Argentina S.A. (Efectivo Sí) acted as trustor, arranger, collection agent and placement agent, TMF Trust Company (Argentina) S.A. acted as financial trustee, and Banco Patagonia S.A. acted as arranger and placement agent.
We're a certified Great Place to Work® in Argentina!
Our Firm is a great place to work!
We are delighted to announce that our Firm received the Great Place to Work® certification in recognition of the quality of our organizational culture.
This recognition makes us extremely proud, not only because of what it says about us, but also because it is the direct result of our team's feedback, which highlighted values such as integrity, communication, community, hospitality and competence.
Our constant effort to focus on people, on their development and on caring for the work environment, was key to obtaining this distinction.
Being aware of our achievements is very important to continue growing, and sharing them is the best way to celebrate them together!
Issuance of PyME CNV Guaranteed Class I Notes of Syntex S.A. for $200,000,000
Counsel in the issuance of the PyME CNV Guaranteed Class I Series I and Class II Series I Notes for $200,000,000 by Syntex S.A. due on Dicember 7, 2024.
Banco Supervielle S.A. and Banco de Galicia y Buenos Aires S.A.U. acted as arrangers, placement agents and guarantee entities of Class I Series I and Class II Series I Notes. Supervielle Agente de Negociación S.A.U. acted as placement agent of the Notes.