ICBC contributes to $85 million onshore loan to Aeropuertos Argentina 2000

On August 9, 2019, Aeropuertos Argentina 2000 S.A. (AA2000) signed two loan agreements: (a) the onshore loan agreement for $85,000,000 and (b) the offshore loan agreement for $35,000,000. The onshore lenders were Citibank N.A., Industrial and Commercial Bank of China (Argentina) S.A., Banco Galicia y Buenos Aires S.A.U. and Banco Santander Río S.A. Both loans carry 3-year terms (maturities). The capital under the loan agreements was to be repaid in eight equal and consecutive quarterly installments, with the first capital payment made one year after the disbursement date. The onshore loan carries a fixed annual interest rate of 9.75%. As a source of collateral for the loans, AA2000 constituted a trust under which it was assigned fiduciary for guarantee purposes in accordance with the provisions of article 1680 and concordant of the Civil and Commercial Code of the Nation and for the benefit of each and every one of the lending banks, as beneficiaries (a) the collection rights, whether charged directly by AA2000 or a third party for the account and / or order of AA2000, with respect to the total flow of funds for import and export services provided by Terminal de Cargas Argentinas (a business unit of AA2000), including but not limited to storage, handling, refrigeration and scanning of merchandise in any of the airports of AA2000 (with the exception of 15% corresponding to the total revenues of the Concession, in accordance with the provisions of clause 5 of the Memorandum Agreement); and (b) the collection rights of AA2000 as a trustee pursuant to the provisions of article 11.4 of the Negotiable Obligations guarantee contract between AA2000 and Citibank dated January 17, 2017, in the event of termination, expropriation or rescue of the Concession Contract; including the right to receive and withhold all payments pursuant to them and any other proceeds thereof, fiduciary assigned under guarantee of the Negotiable Obligations by AA2000 under the Negotiable Obligations Guarantee Trust. Said assignment has been authorized by Resolution No. 61/2019 of the ORSNA dated August 8, 2019.

Additional details

1. Aeropuertos Argentina 2000 S.A. (AA2000) was incorporated in the Autonomous City of Buenos Aires in 1998, after a consortium of companies won the national and international bid for the concession rights for the use, management and operation of the ‘A’ Group of the Argentine National Airport System. ‘A’ Group includes 33 airports, which operate in Argentina. 2. The size of ICBC’s contribution to the $85 million syndicated loan is unknown. For the time being, AidData assumes equal contributions ($21.25 million) across the 5 known members of the loan syndicate 3. Project intent coded as "Mixed" insofar as the end purpose of the loan is unknown. It is potentially for either infrastructure that promotes the development of Argentina (i.e. development intent) or only for working capital, general operations, debt servicing, etc. (i.e. commercial intent), or both.

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