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Overview

ICBC (Argentina) contributes to ARS 2.2 billion syndicated refinancing agreement with San Antonio International

Commitments (Constant USD, 2023)$7,953,256
Commitment Year•2022Country of Activity•ArgentinaDirect Recipient Country of Incorporation•ArgentinaOverseas Jurisdiction•ArgentinaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 30, 2022

Stakeholders

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

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (Argentina) Limited (ICBC (Argentina))

Cofinancing agencies

Private Sector

  • Banco de Galicia and Buenos Aires S.A.U.

Receiving agencies

Private Sector

  • San Antonio Internacional SA

Collateral providers

Private Sector

  • San Antonio Internacional SA

Security / collateral agents

Private Sector

  • TMF Trust Company (Argentina) S.A.

Loan description

ICBC (Argentina) contributes to ARS 2.2 billion syndicated refinancing agreement with San Antonio International in 2022

Interest type•Unknown

Collateral

The financing was secured by (i.e. collateralized against) an equipment security trust established in favor of TMF Trust Company for the benefit of the lenders, wherein San Antonio International's oil service equipment was secured in trust to TMF Trust Company and loaned back to San Antonio International.

Narrative

Full Description

Project narrative

On December 30, 2022, Industrial and Commercial Bank of China (Argentina) and Banco de Galicia y Buenos Aires S.A.U. entered into a syndicated refinancing agreement with San Antonio Internacional S.A., wherein ARS 2.2 billion in obligations were refinanced. Through the agreement, these obligations were converted into US dollars, and both principal and interest maturities were rescheduled. Borrowing terms are unknown. However, it is known that the financing was secured by (i.e. collateralized against) an equipment security trust established in favor of TMF Trust Company for the benefit of the lenders, wherein San Antonio Internacional's oil service equipment was secured in trust to TMF Trust Company and loaned back to San Antonio Internacional. This transaction was one of three that formed an ARS 6.7 billion debt restructuring undertaken by San Antonio International. Banco Santander Argentina and BBVA Argentina cleared ARS 4.5 billion in debt owed by San Antonio Internacional in exchange for an in-kind payment of real estate and payment of the remaining balance following this transfer. Servicios Especiales San Antonio SA, a related entity to San Antonio Internacional S.A., also offered a down payment on and rescheduled ARS 215,000,000 with BBVA Argentina.

Staff comments

1. While sources related to the refinancing transactions do not explicitly list the currency as ARS, San Antonio Internacional SA was acquired in 2018 by United States-based private equity firm Lone Star Fund for approximately USD $150 million. Similarly, in 2020, San Antonio Internacional SA was unable to pay and restructured USD $105 million in debts. As such, AidData has assumed that 6.7 billion ARS, not 6.7 billion USD, in debt obligations were refinanced. 2. Bruchou & Funes de Rioja served as legal advisor to ICBC Argentina and other lenders. 3. This transaction is likely refinancing previous debt contracted by San Antonio Internacional with ICBC Argentina. However, the timing and value of any previous transaction(s) is unknown. This issue warrants further investigation.