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Overview

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

Commitments (Constant USD, 2023)$37,084,533
Commitment Year•2016Country of Activity•ArgentinaDirect Recipient Country of Incorporation•ArgentinaOverseas Jurisdiction•ArgentinaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 2, 2016
First repayment
Dec 31, 2016

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 (Argentina) Limited (ICBC (Argentina))

Cofinancing agencies

Private Sector

  • Banco Itaú
  • Banco Macro S.A.

Receiving agencies

Private Sector

  • Genneia S.A.

Implementing agencies

Private Sector

  • General Electric Co. (GE)

Collateral providers

Private Sector

  • Genneia S.A.

Security / collateral agents

Private Sector

  • Banco de Servicios y Transacciones S.A. (BST)

Loan desecription

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

Grace period•1 yearsInterest rate (t₀)•7%Interest type•Fixed Interest Rate

Collateral

This loan was secured by 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.

Narrative

Full Description

Project narrative

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.

Staff comments

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.