ICBC provides bilateral loan to AA2000 to refinance February 2021 debt obligations from syndicated 2019 onshore loan (Linked to Record ID#92332, #105301, #105305, #105307, #105308, #97357)

Project narrative

On April 29, 2020, a framework agreement was signed between Aeropuertos Argentina 2000 S.A. (AA2000) and Industrial and Commercial Bank of China (Argentina), as well as Banco de Galicia y Buenos Aires SAU, and Banco Santander Río SA, agreeing to partially refinance a USD $85 million onshore syndicated loan obtained on August 9, 2019 (see Record ID#92332) and Citibank to partially refinance the offshore loan signed at the same time. The framework agreement allowed the installments for these loans due in August 2020 and November 2020 to be refinanced via new bilateral loans between AA2000 and each of the creditors, to be repaid in four quarterly installments starting September 19, 2021, functionally deferring the payments. A total of US $ 26,666,667 was to be provided under the framework agreement. Further, these bilateral loans were to be collateralized by the same trust agreement that collateralized the syndicated loan. Then, on August 19, 2020, AA2000 obtained the four bilateral loans worth 986,977,222 ARS total, including one with ICBC Argentina (captured via Record ID#105301). These loans were to be used to cover the August 2020 payments, carried an interest rate of BADLAR plus a 5% margin, and were to be repaid in equal and consecutive quarterly installments beginning on September 19, 2021. On November 19, 2020, AA2000 obtained the four bilateral loans worth 902,808,111 ARS total, including one with ICBC Argentina (captured via Record ID#105305). These loans were to be used to cover the November 2020 payments, carried an interest rate of BADLAR plus a 5% margin. 48% of the loan was to be repaid through 4 equal and consecutive quarterly installments starting on September 19, 2021, and the remaining 52% was to be repaid in full on November 19, 2022. On February 19, 2021, AA2000 obtained the four bilateral loans worth 981,661,110 ARS total, including one with ICBC Argentina (captured via Record ID#105306). These loans were to be used to cover the February 2021 payments, carried an interest rate of BADLAR plus a 5% margin. 48% of the loan was to be repaid through 4 equal and consecutive quarterly installments starting on March 19, 2022, and the remaining 52% was to be repaid in full on February 21, 2023. Then, on May 17, 2021, AA2000 signed another agreement with ICBC Argentina, Banco de Galicia y Buenos Aires SAU, and Banco Santander Río SA to similarly defer payments on the August 2019 offshore loan via three bilateral loans with each creditor. On May 19, 2021, AA2000 obtained the three bilateral loans worth 890,527,778 ARS total, including one with ICBC Argentina (captured via Record ID#105307). These loans were to be used to cover the May 2021 payments, carried an interest rate of BADLAR plus a 10% margin, and were due in one installment on May 19, 2022. On August 19, 2021, AA2000 obtained the three bilateral loans worth 920,611,111 ARS total, including one with ICBC Argentina (captured via Record ID#105308). These loans were to be used to cover the August 2021 payments, carried an interest rate of BADLAR plus a 10% margin, and were due in one installment on August 19, 2022. On November 18, 2021, however, instead of issuing a set of three bilateral loans, a $58 million syndicated loan agreement was signed between Aeropuertos Argentina 2000 (AA2000) and the Argentine Branch of the Industrial and Commercial Bank of China (ICBC), Banco de Galicia and Buenos Aires, Banco Santander Río, and Citibank Argentina Branch to refinance existing debts (see Record ID#97357). The loan agreement signing followed the signing of a framework agreement on October 26, 2021. The severe decrease in air travel following the COVID-19 pandemic was cited as the reason for the refinancing.