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Overview

ICBC Dubai contributes to ARS 719 million syndicated loan to refinance November 2017 debt to Genneia Desarrollos (Linked to Record ID#105376 and #105377)

Commitments (Constant USD, 2023)$2,626,257
Commitment Year•2020Country of Activity•ArgentinaDirect Recipient Country of Incorporation•ArgentinaOverseas Jurisdiction•United Arab EmiratesSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 13, 2020
End (actual)
Jan 17, 2022
First repayment (originally scheduled)
Dec 16, 2020
Last repayment (originally scheduled)
Nov 16, 2023

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • BACS Banco de Crédito y Securitización SA
  • Banco Hipotecario SA
  • Banco Itaú

Receiving agencies

Private Sector

  • Genneia S.A.

Loan description

ICBC Dubai contributions to ARS 719 million syndicated loan to refinance November 2017 debt to Genneia Desarrollos

Interest type•Variable Interest RateMaturity•3 years

Narrative

Full Description

Project narrative

On November 22, 2017, Genneia Desarrollos S.A. (GEDESA) -- subsidiary of Argentine energy producer Genneia S.A. -- entered a USD $45 million syndicated loan agreement with the Dubai Branch of the Industrial and Commercial Bank of China, the Nassau Branch of Banco Itaú Unibanco, Banco Hipotecario, and Banco de Crédito y Securitización (BACS). ICBC Dubai's contribution to this syndicated loan is captured via Record ID#105376. The loan was provided for general use, including but not limited to repaying debt. It carried a 3 year maturity period and an interest rate of LIBOR plus 5.5%, payable quarterly. The loan was not collateralized. The principal was to be repaid in 12 consecutive quarterly installments, with the first payment due February 22, 2018 and a final maturity date of November 22, 2020. However, Genneia's financial statements indicated that GEDESA had intended to refinance the loan's final installment at the time the loan was contracted. As such, on November 13, 2020, a new agreement was signed to partially reschedule and partially refinance the remaining debt. 60% of the debt with ICBC Dubai and Itau Nassau, for a total of US$ 8,634,600, was refinanced (see Record ID#105377). The maturity was extended by three years, with the new final maturity date on November 16, 2023. Additionally, the interest rate was updated to the 3 month LIBOR rate, plus a 7.25% margin. The other 40% of ICBC Dubai and Itau Nassau's debt, as well as 40% of the debt owed to Banco Hipotecario and BACS, was refinanced with a new loan of ARS 719,352,541 (see Record ID#105378). The new loan carried a 3 year maturity, to be paid in 36 consecutive monthly installments starting on December 16, 2020 and ending on November 16, 2023. The loan carried an interest rate of the corrected BADLAR rate plus 8.5%, which will be paid monthly. This loan was fully pre-paid on January 17, 2022.

Staff comments

1. The exact contribution to the loan by each member of the syndicate is unknown. For the time being, AidData has assumed each member of the 4 syndicate members contributed equally (ARS 179,838,135.25) 2. AidData cannot estimate the interest rate because the margin and reference rate to the 2020 loan are unknown.