Argentine Central Bank Mandates Companies to Refinance Debt
Pursuant to Communication “A” 7106 dated September 15, 2020, the Argentine Central Bank tightened currency controls.
According to the new regulation, private sector companies and financial institutions shall reprofile at least 60% of any payment of principal scheduled between October 15, 2020 and March 31, 2021 on any external financial debt (other than intercompany debt) and dollar-denominated local securities offerings.
A refinancing plan shall be filed with the Argentine Central Bank based on the following standards:
a) Argentine debtors shall be granted access to the foreign exchange market to purchase foreign currency to make payments of services of principal for up to 40% of the principal amount due on such period only; and
b) at least 60% of the principal amount due on such period shall be refinanced with a new external indebtedness with an average life of at least 2 years.
This shall not apply to: (a) indebtedness with international organizations or their associated agencies or guaranteed by them; (b) indebtedness granted by official credit agencies or guaranteed by them; or (c) payments of principal for an amount no exceeding USD 1,000,000 per calendar month.
The refinancing plan shall be filed before the following deadlines: (a) September 30, 2020, with respect any payment due before December 31, 2020; and (b) at least 30 calendar days before the relevant payment, with respect to any payment due between January 1, 2021 and March 31, 2021.
For more information, do not hesitate to contact Marcelo R. Tavarone, Federico Salim, Julieta De Ruggiero or Francisco Molina Portela.
Municipality of Cordoba’s Series XXXIX Treasury Notes Issuance for AR$600,000,000
Legal counsel to the Municipality of Córdoba, as issuer, Banco de la Provincia de Córdoba S.A., as arranger and placement agent, and to Banco de Servicios y Transacciones S.A., Puente Hnos. S.A., AdCap Securities Argentina S.A., Banco de la Ciudad de Buenos Aires, Banco Hipotecario S.A. and SBS Trading S.A., as placement agents, in the issuance of Municipality of Cordoba’s Series XXXIX Treasury Notes, under the Municipality of Cordoba’s Treasury Notes Issuance Programme. The transaction closed on September 3, 2020 and the payments due under the Treasury Notes Series XXXIX are secured by certain rights of the Municipality to collect certain contribution charges over the commercial, industrial and services activity. The Treasury Notes Series XXXIX were issued for AR$600,000,000 at an annual floating interest rate equivalent to Badlar plus 4.47%, due on March 2, 2021.
Province of Chubut’s Series LII Treasury Notes Issuance for AR$ 175,100,000
Legal counsel to Puente Hnos. S.A., as placement agent in the issuance of Province of Chubut’s Series LII Treasury Notes. The Treasury Notes Series LII are secured by certain rights of the Province of Chubut to receive amounts under the federal tax co-participation regime and were issued for AR$ 175,100,000 fixed annual nominal rate equivalent to 34%, and is due on September, 28 2020.
MSU S.A.'s US$ 15,000,000 Series VIII notes
Legal counsel to Banco de la Provincia de Buenos Aires, Balanz Capital Valores S.A.U., INTL CIBSA S.A., Banco de Galicia y Buenos Aires S.A.U. and Puente Hnos. S.A. acting as placement agents in MSU S.A.’s issuance of series VIII notes for US$ 15,000,000 under the global program of notes for an amount of up to US$ 50,000,000. The Series VIII Notes were issued on July 31, 2020 at a 0% fixed rate and due twenty-four months from the date of issuance.
Province of Chubut’s Series LI Treasury Notes Issuance for AR$ 381,400,000
Legal counsel to Puente Hnos. S.A., as placement agent in the issuance of Province of Chubut’s Series LI Treasury Notes. The Treasury Notes Series LI are secured by certain rights of the Province of Chubut to receive amounts under the federal tax co-participation regime and were issued in two classes amounting to AR$ 381,400,000. Class 1 has a fixed annual nominal rate equivalent to 34.75%, and is due on August, 24 2020. Class 2 has a fixed annual nominal rate equivalent to 35.50%, and is due on October, 23 2020.
Province of Chubut’s Series L Treasury Notes Issuance for AR$ 401,400,000
Legal counsel to Banco del Chubut S.A., as arranger, placement and financial agent, in the issuance of Province of Chubut’s Series L Treasury Notes. The Treasury Notes Series L are secured by certain rights of the Province of Chubut to receive amounts under the federal tax co-participation regime and were issued for AR$ 401,400,000 fixed rate equivalents to 35.50% annual nominal, due on September 15, 2020.
Generación Mediterránea in a loan for an amount of US$ 14,808,483.01 granted by J.P. Morgan Chase Bank
Legal counsel to Generación Mediterránea S.A., as borrower, and Albanesi S.A. and Central Térmica Roca S.A., as corporate guarantors, in a loan for an amount of US$ 14,808,483.01 granted by J.P. Morgan Chase Bank, N.A., as organizer, original lender and facility agent, and guaranteed by Export-Import Bank of the United States.
Municipality of Cordoba’s Series XXXVIII Treasury Notes Issuance for AR$400,000,000
Legal counsel to the Municipality of Cordoba, as issuer, Banco de la Provincia de Córdoba S.A., as arranger and placement agent, and to Puente Hnos. S.A., Banco de Servicios y Transacciones S.A., AdCap Securities Argentina S.A. and Banco de la Ciudad de Buenos Aires, as placement agents, in the issuance of Municipality of Cordoba’s Series XXXVIII Treasury Notes, under the Municipality of Cordoba’s Treasury Notes Issuance Programme. The transaction closed on July 3, 2020 and the payments due under the Treasury Notes Series XXXVIII are secured by certain rights of the Municipality to collect certain contribution charges over the commercial, industrial and services activity. The Treasury Notes Series XXXVIII were issued for AR$400,000,000 at an annual floating interest rate equivalent to Badlar plus 5.99%, due on October 2, 2020.
Province of Chubut’s Series XLIX Treasury Notes Issuance for AR$ 382,500,000
Legal counsel to Banco del Chubut S.A., as arranger, placement and financial agent, and to Puente Hnos. S.A., as placement agent, in the issuance of Province of Chubut’s Series XLIX Treasury Notes. The Treasury Notes Series XLIX are secured by certain rights of the Province of Chubut to receive amounts under the federal tax co-participation regime and were issued for AR$ 382,500,000 fixed rate equivalents to 35.50% annual nominal, due on July 24, 2020.
Legal advice in the issuance of Generación Mediterránea S.A. Notes
Counsel to Generación Mediterránea S.A. in the issuance of its 6.50% Class XI fixed rate notes for US$9,876,755 due June 23, 2021 and its Badlar plus 8% Class XII variable rate notes for $151,114,564 due December 23, 2020, issued under the company’s US$100,000,000 Global Notes Program. Class XI and Class XII notes are guaranteed by Albanesi S.A.
SBS Trading S.A., SBS Capital S.A., Balanz Capital Valores S.A.U., Banco de Servicios y Transacciones S.A., BACS Banco de Crédito y Securitización S.A., Banco de la Provincia de Buenos Aires and Banco Hipotecario S.A. acted as arrangers and placement agents for the Class XI and Class XII notes.