Province of Chubut’s Series LVIII Class 1 and Class 2 Treasury Notes Issuance for AR$ 392,718,500
Legal counsel to Puente Hnos. S.A., as placement agent in the issuance of Province of Chubut’s Series LVIII Treasury Notes (the “Treasury Notes Series LVIII”). The Treasury Notes Series LVIII 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$ 392,718,500. Class 1 has a fixed annual nominal rate equivalent to 34.50% and is due on November 20, 2020. Class 2 has a fixed annual nominal rate equivalent to 35.75% and is due on January 20, 2021.
Francisco Molina Portela New Partner of the Banking & Finance Department
Senior associate Francisco Molina Portela was promoted to partner. Francisco will lead the Banking & Finance Department together with Marcelo R. Tavarone, Federico Salim and Julieta De Ruggiero.
Francisco (35), joined the firm when it was founded in 2014. He concentrates his practice on capital markets transactions, project finance, debt restructuring and banking and securities regulation.
He obtained his law degree from Universidad de Buenos Aires (2011), and completed an LL.M in Banking and Finance Law (with distinction) at Queen Mary University of London in 2016. During 2017/2018 he worked as a foreign associate at Simpson Thacher & Bartlett in New York. He is also an assistant lecturer in Contract Law and Banking Law at the Universidad de Buenos Aires.
Marcelo R. Tavarone, Managing Partner of the firm said: “We are really pleased with Francisco’s promotion, the first associate of our firm to become partner. This promotion is a recognition to his ability and dedication. Since the foundation of TRSyM in 2014, our commitment has been to accompany our associates in their professional development, and Francisco’s promotion is the best example of this. It also reflects the continuous growth of our firm, despite the adverse context that Argentina and the world are going through. Francisco is part of the new generation of lawyers who will lead the future of the legal profession”.
Municipality of Cordoba’s Series XL Treasury Notes Issuance for AR$600,000,000
Legal counsel to the Municipality of Cordoba’s, 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 Hipotecario S.A. and SBS Trading S.A., as placement agents, in the issuance of Municipality of Cordoba’s Series XL Treasury Notes (the “Treasury Notes Series XL”), under the Municipality of Cordoba’s Treasury Notes Issuance Programme (the “Programme”). The transaction closed on October 2, 2020 and the payments due under the Treasury Notes Series XL are secured by certain rights of the Municipality to collect certain contribution charges over the commercial, industrial and services activity. The Treasury Notes Series XL were issued for AR$600,000,000 at an annual floating interest rate equivalent to Badlar plus 4.60%, due on June 29, 2021.
Province of Chubut’s Series LVI Treasury Notes Issuance for AR$ 176,363,700
Legal counsel to Puente Hnos. S.A., as placement agent in the issuance of Province of Chubut’s Series LVI Treasury Notes (the “Treasury Notes Series LVI”). The Treasury Notes Series LVI 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$ 176,363,700 fixed annual nominal rate equivalent to 34%, and is due on October, 23 2020.
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.