ICBC contributes to $34 million syndicated loan tranche for 567MW Ensenada Barragán Thermal Power Plant Conversion Project (Linked to Record ID#92290)

Project narrative

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. (ICBC). The loan carried a maturity 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. Record ID#92290 captures ICBC's estimated contribution to the $136 million tranche. Record ID#92291 captures ICBC's estimated contribution to 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 covered CTEB’s open cycle’s operating risk. On March 25, 2022, CTB and the lenders executed a amendment to the June 25, 2019 agreement, which reset the loan's maturity date to October 1, 2022 and changing the loan's interest reference rate from LIBOR to SOFR. During the fiscal year that ended on December 31, 2022, CTB repaid the loan in full. 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. The new combined cycle plant was inaugurated on January 30, 2023.