ICBC contributes to $102 million syndicated loan for Bragado Thermal Power Plant Expansion Project

On December 2, 2016, a three-bank syndicate — consisting of the Industrial and Commercial Bank of China (Argentina) (ICBC), Banco Macro, and Bancpo Itaú — signed a $102 million USD syndicated loan agreement with Genneia S.A. — an Argentine energy producer — for the Bragado Thermal Power Plant Expansion Project. This loan carried a grace period of one year, an interest rate of 7%, a principal payable in nine quarterly installments with interest payable quarterly. Banco de Servicios y Transacciones served as trustee and collateral agent. Genneia S.A. provided collateralization for this loan through the constitution of a guarantee trust to which the rights of collection of its wholesale contracts with CAMMESA for the expansions of the Bragado Power Plant and turbine supply contracts with General Electric (GE) and a registration pledge. The proceeds were to be used by the borrower for to finance the purchase and commissioning of GE power turbines and other investments for the extension of the Bragado Thermal Power Plant. The loan's principal outstanding and interest outstanding were repaid ahead of schedule on January 27, 2017 and February 7, 2017, respectively.

Additional details

1. The individual contributions of the three lenders to the $102 million syndicated loan are unknown. For the time being, AidData has estimated the contribution of ICBC by assuming that each lender contributed an equal amount ($34,000,000) to the syndicated loan. 2. The audited financial statements of the borrowing institution (see https://www.genneia.com.ar/contenido/Genneia_Financial_Statements_December_2016.pdf) refer to the loan being "cancelled in advance" on January 27, 2017 and February 7, 2017. AidData assumes that this is an imperfect Spanish to English translation that refers to the loan being repaid ahead of schedule. However, this issue warrants further investigation.

Number of official sources

2

Number of total sources

2