ICBC contributes to $136 million syndicated loan tranche for 567MW Ensenada Barragán Thermal Power Plant Conversion Project (Linked to Project ID#92291)

On June 25, 2019, CT Barragán S.A. (CTB) — a special purpose vehicle that is jointly owned by Pampa Energia (50% equity stake) and YPF S.A. (50% equity stake) — signed a $170 million syndicated loan agreement with a group of 5 lenders for the 567MW Ensenada Barragán Thermal Power Plant Conversion Project. The members of the lending syndicate were Citibank, N.A., Banco de Galicia y Buenos Aires S.A.U., Banco Santander Río S.A., HSBC Bank Argentina S.A. and Industrial and Commercial Bank of China (Argentina) S.A. The loan carried a maturity length of 3 years (final maturity date: June 26, 2022), with a $136 million tranche accruing at a fixed 10.25% interest rate and a $34 million tranche accruing at a variable interest rate of LIBOR plus a 6.25% margin. Project ID#92290 captures the $136 million tranche. Project ID#92291 captures the $34 million tranche. The loan was collateralized against a pledge of shares in CT Barragán S.A (CTB), and payment, compensation and/or damages under an insurance policy, which covers CTEB’s open cycle’s operating risk. The purpose of the project is to convert the Ensenada Barragán Thermal Power Plant — known in Spanish as Central Térmica Ensenada Barragán (CTEB) — into a combined cycle plant to become more efficient. CTEB is the sixth Central Térmica (CT) in the Province of Buenos Aires, located in Ensenada city, Greater La Plata. It is composed of two Siemens GT commissioned in 2012 for 567 MW, representing 1.3% of Argentina’s installed capacity. The power plant may consume natural gas or gas oil, and has two storage tanks with a combined capacity of 45,000 m3. The conversion to a combined cycle plant is expected with the commissioning of a 280 MW Siemens steam turbine.

Additional details

1. The Spanish project title is Central Térmica Ensenada Barragán (CTEB). 2. AidData has estimated the all-in interest rate of the $34 million loan tranche by adding 6.25% to the average 6-month LIBOR rate in June 2019 (2.301%). 3. The size of ICBC’s contributions to the $136 million loan tranche and the $34 million tranche are unknown. For the time being, AidData assumes equal contributions across the five members of the syndicate ($136m/5=$27.2m and $34m/5=$6.8m). 4. From 2013 to 2021, CTEB’s historical average annual generation amounted to 1,287 GWh, with a generation record high of 2,093 GWh in 2016 and a record low of 255 GWh in 2020. Pampa was scheduled to operate CTEB until July 2023, alternating its operation with YPF S.A. for 4-year terms. It has a 50% equity stake in CT Barragán S.A., a project company (special purpose vehicle) whose only asset is CTEB

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