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Overview

ICBC contributes $37.5 million to $75 million syndicated loan with YPF Energia Eléctrica S.A. for capital expenditures and general corporate purposes

Commitments (Constant USD, 2023)$37,736,111
Commitment Year•2018Country of Activity•ArgentinaDirect Recipient Country of Incorporation•ArgentinaOverseas Jurisdiction•ArgentinaSector•EnergyFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 26, 2018
Start (planned)
Dec 26, 2018
Last repayment (originally scheduled)
Dec 25, 2021

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))

Receiving agencies

State-owned companies

  • YPF Energia Eléctrica S.A.

Loan description

ICBC contributes $37.5 million to $75 million syndicated loan with YPF Energia Eléctrica S.A. for capital expenditures and general corporate purposes in 2018

Grant element•2.0835%Interest rate (t₀)•8.18844%Interest type•Variable Interest RateLoan tenor•3-month rateMaturity•3 years

Narrative

Full Description

Project narrative

On December 26, 2018, YPF Energía Eléctrica S.A. signed a $75 million syndicated loan agreement Banco Latinoamericano de Comercio Exterior S.A. (Bladex) New York Agency and Industrial Commercial Bank of China (Argentina). Both lenders reportedly contributed the same amount ($37.5 million). The loan had a three-year maturity (final maturity date: November 23, 2021) and an interest rate of 3-month LIBOR plus a 5.375% margin. The principal amount of the loan is repayable in four equal monthly installments on dates that are 24, 29, 30 and 36 months after disbursement. The loan was structured as a club deal between Bladex and Industrial and Commercial Bank of China, which together acted as joint lead arrangers. Bladex was the administrative agent under the facility. The proceeds of the facility will be used to finance YPF Energia Eléctrica's capital expenditures for energy generation projects and other general corporate purposes. One project was the Los Teros Wind Farm Project.

Staff comments

1. YPF Energia Eléctrica S.A. is now known as YPF Luz. YPF Luz is an energy generation company with an important position in the Argentine electricity market which, among others, develops projects in the thermoelectric and wind energy field in Argentina. 2. AidData has estimated the all-in interest rate by adding 5.375% to average 3-month LIBOR in December 2018 (2.788%). 3. One source suggests that the loan agreement may have been signed on November 29, 2018. This issue warrants further investigation.