ICBC contributes Ps. 100,000,000 to syndicated loan to AES Argentina Generación S.A. in 2014

In July 2014, AES Argentina Generación S.A. — the Argentine subsidiary of US electricity provider AES — signed a Ps. 200,000,000 syndicated loan agreement with Industrial and Commercial Bank of China (Argentina) S.A. and Banco Itau Argentina S.A. The proceeds of the loan were to be used by the borrower for working capital purposes. The loan was repayable in ten consecutive quarterly principal amortization installments, beginning the first one six months from the date of disbursement, which accrues interest at BADLAR rate plus 565 basis points. The maturity of the last installment was in April 2017. The loan contained the usual covenants for these types of transactions such as reporting requirements, restrictions on pledges, leverage ratios, corporate reorganizations, restriction on the making of certain payments, among others. As of September 30, 2016, the balance of the loan was Ps. 60,000,000.

Additional details

1. Given that AidData does not know how much Industrial and Commercial Bank of China (Argentina) S.A. and Banco Itau Argentina S.A. contributed to the syndicated loan, it assumes equal contributions of Ps. 100,000,000 for the time being. 2. BADLAR rate is an average rate published by the Central Bank based on a survey of financial institutions in Argentina regarding the nominal annual interest rate in peso-denominated time deposits of more than Ps. 1.0 million from 30 to 35 days. AidData estimates the interest rate by adding the BADLAR rate (22%) when the loan was contracted (July 2014) plus 5.65%. 3. The China-Latin America Commercial Loans Tracker, which is produced by the Inter-American Dialogue, does not capture this ICBC loan.

Number of official sources

3

Number of total sources

6