ICBC contributes Ps. 150,000,000 to syndicated loan to AES Argentina Generación S.A. in 2015

On July 14, 2015, AES Argentina Generación S.A. — the Argentine subsidiary of US electricity provider AES — signed a Ps. 300,000,000 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 nine consecutive quarterly principal amortization installments, beginning the first one in the month of July 2016. It accrued interest at BADLAR rate plus 575 basis points. The maturity of the last installment was in July 2018. The loan contained usual covenants customary for these types of transactions such as reporting requirements, restrictions on pledges, leverage ratios, corporate reorganization, restriction for the execution of certain payments, among others. As of September 30, 2016, the balance of the loan was Ps. 266,670,000.

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. 150,000,000 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 (20.7%) when the loan was contracted (July 2015) plus 5.75%. 3. The China-Latin America Commercial Loans Tracker, which is produced by the Inter-American Dialogue, does not capture the face value or borrowing terms of this ICBC loan.

Number of official sources

3

Number of total sources

6