ICBC contributes to variable tranche of syndicated loan for Central Térmica Güemes Power Plant Construction Project (Linked to Record ID#54726)

Project narrative

The Central Térmica Güemes (CTG) power plant project is located in Northwestern Argentina, in the City of General Güemes, Province of Salta. Privatized in 1992, it has a 261 MW open cycle thermal power generation plant with the addition of a GE (‘General Electric’) natural gas-fired turbo generator unit of 100 MW in September 2008, totaling 361 MW. This accounts for 0.9% of Argentina’s installed capacity. From 1993 to 2018, its average annual generation was 1,789 GWh, with a generation record high of 1,903 GWh in 1996, and a record low of 1,030 GWh in 2003. On February 28, 2013, CTG renewed, under a syndicated loan, open credit facilities for a total amount of Ps. 78.7 million with Banco Hipotecario S.A., ICBC, Santander Rio S.A., and Citibank N.A. This loan was payable in two tranches, one variable tranche in the amount of Ps. 61.3 million at the Private BADCOR rate (13.94% on February 28, 2013) rate plus 375 basis points (17.69%) (see Record ID#88262), and another fixed tranche in the amount of Ps. 17.4 million accruing interest at a 22.25% annual nominal fixed rate. Interest was repayable on a quarterly basis, and the principal was repayable 365 days from the loan’s granting date. On December 20, 2013, the loan terms were modified: (i) For the variable tranche, the private Badcor rate plus 500 basis points margin was established, whereas a 29% rate was stipulated for the fixed tranche. (ii) The loan will be paid off in ten quarterly consecutive installments, the first one becoming due six months from the amendment date. The first seven amortization payments will be for an amount equivalent to 60.96% of the principal; the eighth and ninth payments for an amount equivalent to 25.4% of the principal, and the last one will be made thirty-six months as from the amendment date. (iii) If a corporate bond is issued before April 15, 2014, net funds from the placement for up to Ps. 24 million will be allocated to the early cancellation of the syndicated loan based on its maturity chronological order. (iv) CTG will pay a structuring commission for the amendment equivalent to 1% of the principal which remains unpaid at the time the payment is made, and all amounts early canceled according to the provisions of (iii) will be discounted from the principal. The commission will be paid on the date the early cancellation is made or on April 15, whichever is earlier.