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Overview

ICBC provides $35 million loan to Compañía General de Combustibles S.A. (CGC) to help it repay debts in 2016

Commitments (Constant USD, 2023)$38,175,255
Commitment Year•2016Country of Activity•ArgentinaDirect Recipient Country of Incorporation•ArgentinaOverseas Jurisdiction•ArgentinaSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 30, 2016
Last repayment
Mar 31, 2017

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

Private Sector

  • Compañía General de Combustibles S.A. (CGC)

Implementing agencies

Private Sector

  • Compañía General de Combustibles S.A. (CGC)

Collateral providers

Private Sector

  • Compañía General de Combustibles S.A. (CGC)

Loan desecription

ICBC provides $35 million loan to Compañía General de Combustibles S.A. (CGC) to help it repay debts in 2016

Grant element•1.2542%Interest rate (t₀)•4.5%Interest type•Fixed Interest RateMaturity•0.5 years

Collateral

CGC’s shares to be provided by CGC shareholders (Latin Exploration S.L.U. and Sociedad Comercial del Plata S.A.) to be 14% of capital stock and voting rights

Narrative

Full Description

Project narrative

On September 30, 2016, Compañía General de Combustibles S.A. (CGC) signed a $127,289.000 syndicated loan agreement with Industrial and Commercial Bank of China (Argentina) S.A (ICBC), as administrative agent, for the purpose of repaying another syndicated loan in pesos, as well as other short-term debts. The funds were disbursed on October 5, 2016. Then, on November 8, 2016 the amount of $92,289,000 was amortized before the due date with the proceeds from the Issuance of Negotiable Obligations for local and foreign investors. The syndicated loan in US dollars thus became effective with the lender ICBC for $35,000,000. Furthermore, on November 8, 2016, it was agreed with ICBC to modify: (a) the interest rate by replacing it with a nominal annual fixed rate of 4.5%; (b) the due date to be February 3, 2017; (c) the senior security interest on CGC’s shares to be provided by CGC shareholders (Latin Exploration S.L.U. and Sociedad Comercial del Plata S.A.) to be 14% of capital stock and voting rights; (d) the assignment of the trust ownership as collateral for the collection rights was revoked.

Staff comments

1. The China-Latin America Commercial Loans Tracker, which is produced by the Inter-American Dialogue, does not capture this ICBC loan. 2. Argentina-based Compañía General de Combustibles S.A. (CGC) is a leading independent energy company that operates mainly in Argentina and is dedicated to oil & gas and -to a lesser extent- LPG (upstream) exploration, development and production. CGC has an attractive portfolio of oil & gas exploration and production areas in Argentina, and its activity is highly focused on hydrocarbon exploration and production in the Austral Basin, located in the southern Province of Santa Cruz.