Albanesi Energía S.A.’s issuance of Series X Notes for US$ 36,842,713 and Series XI Notes for US$ 6,734,405
Counsel to Banco de Servicios y Transacciones S.A. and SBS Capital S.A. as arrangers of the offer, and to SBS Trading S.A., Banco de Servicios y Transacciones S.A., Balanz Capital Valores S.A.U., Facimex Valores S.A., Banco Hipotecario S.A., Nación Búrsatil S.A., Banco de la Provincia de Buenos Aires, Bull Market Brokers S.A., Banco Supervielle S.A., Invertironline S.A.U., BACS Banco de Crédito y Securitización S.A., Becerra Bursátil S.A., Petrini Valores S.A., Allaria S.A., Invertir En Bolsa S.A., Don Capital S.A., S&C Inversiones S.A., TPCG Valores S.A.U., ADCAP Securities Argentina S.A., Cocos Capital S.A., GMA Capital S.A., Global Valores S.A., Macro Securities S.A.U. and Latin Securities S.A., as placement agents in the issuance of Albanesi Energía S.A.’s 5% Series X Notes for US$ 36,842,713, due September 21, 2025; and 9.50% Series XI Notes for US$ 6,734,405 due March 21, 2026, both of them issued under the Global Notes Program for an amount of up to US$ 250,000,000.
Argentine Government releases Hydrogen Guideline
The Argentine Government has released the National Strategy for the Development of the Hydrogen Economy (the “H2 Strategy”). The Strategy was released pursuant to the Energy Transition Plans to 2030 and 2050 (see our remarks on these documents, here), and bills of law currently being analysed in the Congress (see our remarks on these documents, here (available in Spanish)).
The H2 Strategy provides greater detail on the Government planning framework for H2 development and related activities. The key takeaways of the H2 Strategy are:
- Investment in H2 and associated industries of ≈US$ 90 billion.
- Deployment of electrolysis facilities aggregating 30 GW and 55 GW of new renewable power generation plants.
- Total hydrogen production around 5 MT per year, which will be destined to exports (≈3.75 MT) and for domestic use (≈1.25 MT).
- Creation of 5 new production hubs and construction of new ports.
- Levelized cost of green H2 ≈1.4 USD/kg.
Further, the H2 Strategy includes measures aiming at positioning Argentina as a global exporter of H2, embedded in a global and regional cooperation agenda, with the end-goal of supplying H2 to markets like Japan and Germany.
In turn, the H2 Strategy proposes actions to foster the local demand for H2, aiming for 100,000 tons per year by 2035, 500,000 tons per year by 2045 and 1 MT by 2050.
Finally, the H2 Strategy considers H2 in relation not only for exports and local use, but also for transport, industrial use, gas networks, electricity systems, and cross-cutting issues such as safety, skills, and environmental impacts.
For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Luciana Tapia Rattaro, Rocío Valdez and/or Victoria Barrueco.
Municipality of Cordoba’s Series XLIX Treasury Notes Issuance for AR$ 5,000,000,000
Legal counsel to the Municipality of Cordoba, as issuer, Banco de la Provincia de Córdoba S.A., as arranger and placement, 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 Santander Argentina S.A., Banco Hipotecario S.A., Facimex Valores S.A., SBS Trading S.A., Banco Comafi S.A., Nación Bursátil S.A., Banco de Galicia y Buenos Aires S.A.U., Becerra Bursátil S.A., Petrini Valores S.A., Macro Securities S.A., Banco Patagonia S.A., Dracma S.A. and S & C Inversiones S.A. as placement agents, in the issuance of Municipality of Cordoba’s Series XLIX Treasury Notes (the “Treasury Notes Series XLIX”), under the Municipality of Cordoba’s Treasury Notes Issuance Program. The payments due under the Treasury Notes Series XLIX are secured by certain rights of the Municipality to collect certain contribution charges over the commercial, industrial and services activity. The Treasury Notes Series XLIX were issued on September 21, 2023, for AR$ 5,000,000,000 at an annual floating interest rate equivalent to Badlar plus 7.25%, due on July 17, 2024.
Legal Advice in Petrolera Aconcagua Energía S.A. Class VI and Class VII Notes Issuance
Counsel in the issuance of Petrolera Aconcagua Energía S.A.’s 0% Class VI Notes and 3.4% Class VII Notes for US$ 30,000,000 issued on September 14, 2023, and due September 14, 2026, and September 14, 2027, respectively, under its US$ 150,000,000 Global Notes Program.
Banco de Servicios y Transacciones S.A. acted as arranger and placement agent, and Banco Mariva S.A., Banco Supervielle S.A., Banco Santander Argentina S.A., Banco de Galicia y Buenos Aires S.A.U., TPCG Valores S.A.U., SBS Trading S.A., Consultatio Investments S.A., Allaria S.A., Max Capital S.A., PP Inversiones S.A., Facimex Valores S.A., Invertir en Bolsa S.A. and Latin Securities S.A. acted as placement agents.
Legal Advice in Crédito Directo S.A.’s Class XXVI Notes Issuance
Counsel in the issuance of Crédito Directo S.A. 8,00% Class XXVI Notes for $1,000,000,000 issued on September 8, 2023, and due June 8, 2024, under its US$ 24,000,000 Global Notes Program.
Banco de Servicios y Transacciones S.A. acted as arranger and placement agent, and SBS Trading S.A., Banco Supervielle S.A., Facimex Valores S.A., Banco Mariva S.A., Banco CMF S.A., Banco de Valores S.A., Banco Patagonia S.A., Banco de la Provincia de Córdoba S.A and Industrial Valores S.A. acted as placement agents.
Tax break for Renewable Power Generation Projects
The Secretary of Energy has enacted Resolution 714/2023 (the “Resolution 714”), dated September 1, 2023, that foresees a tax break for Renewable Power Generation Projects.
Resolution 714 provides that the Impuesto País will not be applicable with respect to the import of assets for renewable power generation projects that either (a) have an import financing facility or (b) do not have an import financing facility in place but submit a request before the customs authority.
Furthermore, the tax break will only be applicable to the projects set forth in Annex I thereto.
Finally, Resolution 741 will be applicable to the extent that the relevant assets are not subject to other tax relief (in which case, the latter shall apply).
For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Rocío Valdez and/or Victoria Barrueco.
Province of Santa Fe’s Series II and III Treasury Notes Issuance for AR$ 5,000,000,000
Legal counsel to the Province of Santa Fe, as issuer, and to Nuevo Banco de Santa Fe S.A., as arranger and placement, in the issuance of Province of Santa Fe’s Series II Treasury Notes (the “Treasury Notes Series II”) and Series III Treasury Notes (“Treasury Notes Series III” and together with the Treasury Notes Series II the “Treasury Notes”) under the Province of Santa Fe’s Treasury Notes Issuance Programme (the “Programme”). The transaction closed on August 8, 2023 and the payments due under the Treasury Notes are secured by certain rights of the Province over the Federal Tax Sharing Regime. The Treasury Notes Series II were issued for AR$ 2,125,000,000, at an annual floating interest rate equivalent to Badlar plus 5.99%, due on November 6, 2023. The Treasury Notes Series III were issued for AR$ 2,875,000,000, at an annual floating interest rate equivalent to Badlar plus 6.50%, due on December 6, 2023.
Albanesi Group´s US$74,999,000 Senior Notes Offering in the Argentine and International Capital Markets
Counsel to Generación Mediterránea S.A. and Central Térmica Roca S.A. in the co-issuance of 13.25% Class XXII Notes for US$74,999,000 due July 26, 2026, issued under the Notes Program for an amount up to US$1,000,000,000.
The offer was addressed to the Argentine and International capital markets under the exemptions provided in the US Securities Act of 1933, as amended.
The proceeds from the placement were partially used to refinance the 9.625% Notes due July 2023, issued by the issuers for an aggregate principal amount of US$336,000,000.
The Class XXII Notes are secured by an Argentine law-governed collateral trust and first-priority pledges.
The Bank of New York Mellon acted as Class XXII Notes Trustee, Paying Agent, Registrar, Transfer Agent, and Settlement Agent. Balanz Capital Valores S.A.U. acted as local Registrar. TMF Trust Company (Argentina) S.A. acted as Argentine Collateral Agent and Onshore Trustee. SBS Trading S.A., Banco de Servicios y Transacciones S.A. and Balanz Capital Valores S.A.U. acted as Placement Agents.
Roch S.A. consent solicitation
Counsel to Roch S.A. in a consent solicitation process for the (i) deferral of the payment of certain principal installments under the company’s series 1 secured notes, private secured note and financial loans; and the redistribution of their payments, (ii) capitalization, at their respective maturity dates, of the interest accrued and due in respect of two interest installments, and (iii) waiver of certain matters under the collateral trust agreement dated July 27, 2022 (as amended on March 22, 2023) entered into between ROCH, as trustor, Banco de Valores S.A., as trustee, and certain creditors.
The transaction was conducted within the framework of the company’s judicial insolvency proceeding and allowed Roch to obtain the consents from 78.73% of the holders of the series 1 secured notes for US$16,261,578; 100% of the holders of the private secured note for US$3,413,694; and 100% from the lenders under financial loans Banco Itaú Argentina S.A., Banco de la Ciudad de Buenos Aires and Banco de Tierra del Fuego for US$9,149,905.
Federal Mining Secretariat launches the "Federal Program for the Systematic Disclosure of Mining Activities (ProNDSAM)"
On 08/07/23, Resolution 96/2023 (the "Resolution") was published in the Official Gazette, by which the FMS sets -within its authority- the "Federal Program for the Systematic Disclosure of Mining Activities (ProNDSAM)"..
ProNDSAM has five objectives:
1. Prioritize the systematic dissemination processes of mining information.
2. Regulate the operation of the Argentine Mining Information System Open to the Community ("SIACAM"), while ensuring its continuous operation.
3. Promote compliance with international standards for the dissemination of information on the mining sector.
4. Standardize the monthly and weekly publication of reports and the updating of the project portfolio, containing information on exports, employment, international prices, and the development of mining projects.
5. Establish the methodology for the handling and disclosing of information on employment, international trade, and the evolution of mining projects.
According to the Resolution, Section 3, the Transparency and Mining Information Directorate will be in charge of:
(a) Ensuring the continuous updating of SIACAM indicators, reports and open data;
(b) Publishing monthly reports on mining exports, the trade balance of the main mining projects and the provincial origin of mining exports, in accordance with the methodology set out in Annex I to the Resolution;
(c) Publishing monthly reports on mining employment and employment by province in SIACAM, applying the methodology applying the methodology set out in Annex II to the Resolution;
(d) Publishing monthly reports on international prices of the most relevant minerals in SIACAM;
(e) Publishing special reports in SIACAM that deepen the analysis of specific aspects of the mining sector;
f) Publishing the portfolio of mining projects in Argentina produced by the National Directorate for the Promotion and Mining Economy, applying the methodology for determining the state of evolution of mining projects approved by the Federal Mining Council (COFEMIN), applying the methodology of Annex III of the Resolution; and
g) All those functions entrusted to it by the FMS.
Likewise, the Resolution empowers the Transparency and Mining Information Directorate to issue the complementary regulations that are necessary to carry out the corresponding actions for the implementation, execution and control of ProNDSAM.
The Resolution indicates that the expenditure demanded by the measure will be met according to the budgetary availability, for the Fiscal Year 2023, under Program 32 – "Formulation and Execution of the Geological-Mining Policy".
Background information
The Resolution is the result of several measures taken by the FMS in terms of transparency. Particularly, the Resolution contemplates:
(a) Decree 50/2019: established the goals of the FMS, among which is observed to assist the Ministry of Economy in "... the design and implementation of mining policies, in terms of interaction with investors and companies in the sector, and in all actions aimed at promoting the development of mining in the country".
(b) Resolution 47/2020: established the strategic objectives for the "Argentine Mining Development Strategic Plan" for the next 30 years. Among those, it is noted to favor the access to information related to the activity and the National Mining Policy, guaranteeing the transparent management of the sector.
(c) EITI Initiative: Argentina has been part of the EITI since 2019. According to the 2022 Progress Report, issued in April 2023, Argentina received a score of 73/100. Within the EITI Argentina portal, the objective of facilitating access to information and transparency of the extractive sector is observed.
(d) Resolution 89/2022: created SIACAM, which must periodically report on the economic, geological, geographic, social, health and environmental aspects of the mining activity.
(e) Administrative Decision No. 449/2023: delegated to Transparency and Mining Information Directorate the responsibility of assisting the Undersecretariat of Mining Development in the creation, consolidation and administration of the Single National Mining Information System, the Mining Transparency System and the Mining Communication System, referring to environmental, economic, social, legal aspects, geological, cadastral mining projects and their territorial environments.
Prior to the Resolution, the FMS provided reports and studies on mining, without establishing the methodology used for such publications. Previously, the FMS, through its website, published:
(i) Weekly reports: they monitor the latest developments in Argentine mining projects and the evolution of international prices of the main commodities linked to the sector.
(ii) Monthly reports: reports on international prices, mining exports, and other topics.
(iii) Archive of studies: repository of documents made between 2016 - 2018.
(iv) Mining Development Studies Series: reports focused on mining sector research from various angles. The objective of these is to contribute information and perspectives to the debates around mining in Argentina and the world.
(v) Series of studies on mining markets: documents that provide specific analyses linked to the different minerals of interest and the geological potential of Argentina.
(vi) Bilateral mineral trade reports: reports focused on the investigation of mineral trade between Argentina and different countries.
(vii) Catalogues of mining projects: portfolios aimed at investors. They collect information on the projects with the greatest export potential.
(viii) Series of statistical studies: documents and reports on different variables.
(ix) Gender indicators: Reports and studies on indicators on gender equity and existing gaps in the mining sector.
For more information or inquiries on these topics, please contact Marcos Moreno Hueyo and/or Dolores Reyes.