Bruchou advised on Pampa Energia’s inaugural green bond issuance
Pampa Energía S.A. (“Pampa Energía“), an independent company with active participation in Argentina’s electricity and gas value chain, successfully completed the placement and issuance in the local market of class 8 corporate bonds with a nominal value in pesos of $3,107,268,000, subscribed and integrated in Pesos (the “Notes Series 8” or the “Notes“, indistinctly).
The issuance of the Notes is the first green bond issue in the Argentine capital market by Pampa Energía and is aligned with the four main components of the ICMA (International Capital Market Association) Green Bond Principles 2018 following the “Guidelines for the Issuance of Social, Green and Sustainable Marketable Securities in Argentina” contained in Annex III of Chapter I of Title VI of the CNV Rules (N.T. year 2013 and mod.). The net proceeds of the issue will be fully allocated to the expansion works of the Pampa Energía III Wind Farm (PEPE III)/ de la Bahía Wind Farm, linked to the renewable energy sector.
The issue was rated by FIX SCR Agente Calificadora de Riesgo S.A. (an affiliate of Fitch Ratings) as a green bond “BV1 (arg)”, the highest possible rating in the market for this type of product.
Pampa Energía was advised by Salaverri, Burgio & Wetzler Malbrán; while Banco de Galicia y Buenos Aires S.A.U., Banco de Servicios y Transacciones S.A., Banco Santander Río S.A., Balanz Capital Valores, S.A.U., SBS Trading S.A., BACS Banco de Crédito y Securitización S.A., Banco Hipotecario S.A., Industrial and Commercial Bank of China (Argentina) S.A.U. and AR Partners S.A. acted as placement agents, and them were advised by Bruchou, Fernández Madero & Lombardi.
The Notes were issued on January 18th, 2022, under the Non-Convertible Simple Notes and/or Negotiable Obligations Convertible into Shares Program for up to USD$ 2,000,000,000 (or its equivalent in other currencies or units of value) (the “Program“). Notes Series 8, denominated and payable in Pesos, bear a variable interest rate resulting from the addition of the Applicable Margin to the Reference Rate. The Notes will mature on July 18th 2023.
Pampa Energía is currently the largest independent energy integrated company in Argentina, with active participation in the country’s electricity and gas value chain.
Legal advisors to Pampa Energía S.A.:
Salaverri, Burgio & Wetzler Malbrán: Partner Roberto Lizondo. Associates Marcos Linares, Natalia Ostropolsky, Delfina Meccia and María Esperanza Niez Gay.
In-house counsels: María Agustina Montes and Débora Tortosa Chavez.
Legal advisors to the Transaction Agents:
Bruchou, Fernández Madero & Lombardi: Partner José María Bazan. Associates Pereyra Pagiari Sebastián, Lucila Dorado and Leandro Exequiel Belusci.