Municipalidad de la Ciudad de Río Cuarto’s Debt Securities Issuance for U$S 14,800,000
Deal counsel in the issuance of the Municipalidad de la Ciudad de Río Cuarto’s U$S 14,800,000 debt securities.
Banco de la Provincia de Córdoba S.A. and Puente Hnos. S.A. acted as arrangers and placement agents.
Electricity in Argentina: Sale of generation and transmission assets and other relevant changes
On November 1st, Decree No. 882/2017 was published in the Official Gazette (hereinafter, the “Decree”), introducing major change in Argentina’s Electricity Market.
The Decree provides for the spin-off and sale to the private sector of transmission and generation assets, including power plants totaling 840 MW of capacity, a power plant of 810 MW under construction, minority shareholding stakes in other power plants and the sale of 50% of the shares of CITELEC S.A., holding company of TRANSENER -main electricity transmission company in Argentina-.
This step is the first sale of State-owned infrastructure assets in more than 18 years.
In addition, a new State-owned company is created, from the merger of two existing entities, who will retain certain assets and is in charge of public works under State supervision, including gas pipelines, hydroelectric and thermal power plants.
Main aspects of the Decree
1) Asset sale: future competitive procedures
The Decree instructs the Ministry of Energy and Mining (“MEYM”, for its Spanish acronym) to proceed to the sale, assignment and transference, by means of a public and competitive process, of the following assets:
- Thermal Power Plants “Ensenada de Barragán” and “Brigadier López”, under the condition precedent of executing the works to operate as a Combined Cycle Power Plant.
- “Manuel Belgrano II” Thermal Power Plant
- The shares in the following companies:
- “Compañía Inversora de Transmisión Eléctrica CITELEC S.A.”
- “Central Dique S.A.”
- “Central Térmica Güemes S.A.”
- “Central Puerto S.A.”
- “Centrales Térmicas Patagónicas S.A.”
- “Empresa de Transporte de Energía Eléctrica por Distribución Troncal de la Patagonia S.A. (TRANSPA)”
- State rights related to:
- Thermoelectric Power Plant Manuel Belgrano
- Thermoelectric Power Plant José de San Martín (Central Timbúes)
- Thermoelectric Power Plant Vuelta de Obligado
- Thermoelectric Power Plant Guillermo Brown
The Decree enables the interested parties to submit certain titles issued by CAMMESA in the past (“Liquidaciones de Venta con Fecha de Vencimiento a Definir”) as a way of payment for the assets.
2) Absorption Merger of ENARSA and EBISA: IEASA
The Decree instructs the MEYM to proceed to the absorption merger of Energía Argentina S.A. (“ENARSA”, for its Spanish acronym) and Emprendimientos Energéticos Binacionales S.A. (“EBISA”, for its Spanish acronym), becoming ENARSA the absorbing entity, whose business name will be Integración Energética Argentina S.A. (“IEASA”).
3) Public works transfer and concession agreements awarding
The Decree sets the transfer of certain public works under the direction of MEYM to IEASA, who shall act as principal in the following works:
- “Central Térmica Río Turbio”
- “Hydroelectrical Poryects over the Santa Cruz river “Cóndor Cliff” and “La Barrancosa”
- “Extension of Natural Gas´ Distribution and Transmission System” Project that includes the following works: (i) Regional Centro II gas pipeline – Esperanza/Rafaela/Sunchales; (ii) Cordillerano/Patagónico System; (iii) Cordillerano gas pipeline and (iv) “La Costa” gas pipeline
- Additionally, IEASA is awarded with concession agreements to generate electricity from hydroelectric power plants Cóndor Cliff and La Barrancosa
At TRS&M, as a leading Law Firm in the electricity sector, we are following these developments with great detail and are available to discuss any query regarding the above.
“BeST Consumer Finance Serie XLV” Financial Trust for AR$ 202,000,000
Deal counsel in the issuance and placement in Argentina of trust securities for AR $ 202,000,000 issued under the “BeST Consumer Finance Serie XLV” Financial Trust, in which Banco de Servicios y Transacciones S.A acted as arranger, trustor, servicer and custodian, and TMF Trust Company (Argentina) S.A acted as trustee.
Banco de la Provincia de Buenos Aires’ Series II Notes Issuance for AR$ 2,463,565,400
Legal counsel to Banco de la Provincia de Buenos Aires (the “Bank”) in the Series VI and Series VII Notes issuance for an approximate amount of AR$ 2,463,565,400. The Bank acted as issuer, arranger and lead placement agent of the transaction, while Banco de Galicia y Buenos Aires S.A., BACS Banco de Crédito y Securitización S.A., Banco Macro S.A., Macro Securities S.A. and Industrial and Commercial Bank of China (Argentina) S.A. acted as placement agents.
Integración Eléctrica Sur Argentina S.A.’s AR$ 220,577,227 Class V Bonds issuance
Deal counsel in Integración Eléctrica Sur Argentina S.A.’s issuance of Class V Bonds for AR $220,577,227 under the global Program of Short Term Notes for an amount up to U$S 50,000,000. AdCap Securities Argentina S.A. acted as organizer and placement agent of the Company’s Class V Short Term Notes.
Sancor Seguros´ acquisition of a 70% equity interst in Banco del Sol
Legal Counsel to Grupo Sancor Seguros, as buyer, in the acquisition of a 70% equity interest in Banco del Sol S.A., a bank licensed by the Argentine Central Bank.
Crédito Directo S.A.´s AR$ 250,000,000 Class I & II Notes Issuance
Deal counsel in the issuance of Crédito Directo S.A.´s AR$ 250,000,000 Class I & II Notes under its $ 800,000,000 Global Notes Programme.
Banco de Servicios y Transacciones S.A. acted as arranger and placement agent. Banco Hipotecario S.A., Banco de Crédito y Securitización S.A., Puente Hnos. S.A. and Industrial Valores S.A. acted as placement agents.
Fiplasto S.A.’s AR$ 50,000,000 Class I Debt Securities
Legal advisor of the arranger and placement agents in the issuance of Fiplasto S.A.’s AR$ 50,000,000 Class I Notes under its U$S 20,000,000 Global Notes Programme. AdCap Securities Argentina S.A. acted as arranger and placement agent, and Banco de Servicios y Transacciones S.A. and Cohen S.A. acted as co-placement agents.
“BeST Consumer Finance Serie XLIV” Financial Trust for AR$ 234,000,000
Deal counsel in the issuance and placement in Argentina of trust securities for AR $ 234,000,000 issued under the “BeST Consumer Finance Serie XLIV” Financial Trust, in which Banco de Servicios y Transacciones S.A acted as arranger, trustor, servicer and custodian, and TMF Trust Company (Argentina) S.A acted as trustee.
“Crescere II” Financial Trust for $ 19,819,596
Deal counsel in the issuance and placement in Argentina of trust securities for $ 19,819,596 issued under the “Crescere II” Financial Trust, in which Banco de Galicia y Buenos Aires S.A. acted as arranger and placement agent, TMF Trust Company (Argentina) S.A. acted as financial trustee and Syngenta Agro S.A. acted as trustor and servicer.
The trust assets consist of credits originated by the trustor for the purchase and sale of agricultural inputs, derived from the commercialization of inputs and agricultural products, contained in invoices denominated in US Dollars (US $) and payable in Pesos (at the seller exchange rate published by the Banco de la Nación Argentina at the close of the business day prior to the cash payment, with a maturity of not more than 360 (three hundred sixty) days from the date of assignment), without guarantees.