Overview

ICBC contributes ARS 2 billion to ARS 3.5 billion syndicated loan to repay existing debts

Commitments (Constant USD, 2023)$14,460,466

Commitment Year•2022Country of Activity•ArgentinaDirect Recipient Country of Incorporation•ChileOverseas Jurisdiction•ArgentinaSector•Action Relating To DebtFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Feb 22, 2022

First repayment (originally scheduled): Aug 23, 2022

Last repayment (originally scheduled): May 24, 2023

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

Industrial and Commercial Bank of China (Argentina) Limited (ICBC (Argentina))

Cofinancing agencies

Private Sector

Banco Itaú Argentina S.A.

Receiving agencies

Private Sector

Metrogas S.A.

Implementing agencies

Private Sector

Metrogas S.A.

Collateral providers

Private Sector

Metrogas S.A.

Loan description

ICBC contribution of ARS 2 billion to ARS 3.5 billion syndicated loan to repay existing debts

Grace period•0.5 yearsGrant element•1.8433%Interest rate (t₀)•7.5%Interest type•Fixed Interest RateMaturity•1.25 years

Collateral

Pledge of collection rights to natural gas sales

Narrative

Full Description

Project narrative

On February 22, 2022, Metrogas S.A. signed a ARS 3.5 billion syndicated loan agreement with Banco Itaú Argentina S.A and Industrial and Commercial Bank of China (Argentina) S.A.U. to repay its existing debts. The loan consists of two tranches: a ARS 2 billion tranche from Industrial and Commercial Bank of China (Argentina) S.A.U. with a 7.5% interest rate, a 0.5 grace period, and a 1.25-year maturity; and a ARS 1.5 billion tranche from Banco Itaú Argentina S.A with a 7% interest rate, a 0.5 year grace period, and a 1.25-year maturity. The borrower is responsible for repaying the loan’s principal in 9 installments between August 26, 2022 and November 26, 2024. The loan is secured by (i.e. collateralized against) a pledge from the borrower of certain collection rights to natural gas sales.

Staff comments

1. Metrogas S.A. is a privately owned natural gas distribution company in Argentina. 2. On May 20, 2020, Metrogas S.A. entered into a ARS 947 million loan agreement with Industrial and Commercial Bank of China (Argentina) S.A. It appears that this loan was refinanced with the ARS 3.5 billion syndicated loan that was contracted in February 2022. AidData has not recorded the commitment value of the May 2020 ICBC loan to avoid double-counting.