Legal Counsel to MSU Green Energy in the pre-sale agreement of renewable energy signed with Dow for the supply of solar energy to its production plant in Bahía Blanca

Energias Renovables Las Lomas S.A.U. ("MSU Green Energy"), renewable energies generation arm within the MSU Energy S.A. group and a generating agent in the wholesale electricity market (WEM), has entered into a power supply agreement with Dow for the advance sale of renewable energy within the framework of the Mercado a Término de Energías Renovables, for an approximate amount of US$ 50,000,000.

MSU Green Energy is currently in the process of constructing its Las Lomas and Pampa del Infierno Photovoltaic Solar Parks, which will have capacities of 37 MW and 130 MW, respectively, located in the Provinces of La Rioja and Chaco.

With over 280,000 solar panels, this agreement marks the initial step in MSU Green Energy's broader project to install renewable energy generation parks in the NOA and NEA regions of Argentina.

On the other hand, Dow is one of Argentina's leading chemical and petrochemical companies, with presence in the country for over 60 years and a global track record exceeding 120 years. According to a recent statement from Dow, this agreement will allow them to achieve a 74% share of renewable sources in the energy needs of their production plant in Bahía Blanca by 2025, thereby establishing their position among the top 20 global companies utilizing clean energy.

 

Counsels to MSU Green Energy

We advised MSU Green Energy, through the team led by our partners Nicolás Eliaschev and Francisco Molina Portela, and associates Daiana Perrone and Eduardo N. Cano.

MSU Green Energy was also advised by Ezequiel Abal, its in-house lead counsel.

Counsels to Dow

PAGBAM advised Dow, through its team led by partner Francisco Romano, off counsel Tomás Fernandez Madero and associate Nahuel Pérez de Villarreal.

Dow was also advised by Josefina Tobías and Paloma Berdichevsky, its in-house counsels.


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.