AES Argentina Generacion S.A. Completes first Green Bond Offering in the local capital market

Bruchou & Funes de Rioja - February 28, 2020

AES Argentina Generación S.A. (“Genneia”), a leading electric power generation company in Argentina successfully completed the public offering of its (i) Series B Notes for an aggregate amount of U$S22,162,946 (the “Notes Series B”), (ii) Series C Notes for an aggregate amount of U$S18,629,677 (the “Notes Series C”) and (iii) Series D Notes for an aggregate amount of $468,880,940 (the “Notes Series D” and jointly with the Notes Series B and the Notes Series C, the “Notes”) in the domestic capital market. The Notes were issued on February 18, 2020 under AES’s US$500,000,000 Global Notes Program, at a fixed interest rate of 8% and 7.5%, respectively, in the case of the Notes Series B and the Notes Series C and at a variable interest rate that will consist of “BADLAR Privada” reference rate published by the Argentine Central Bank plus a differential margin of 6.5%. The Notes will be payable on a quarterly basis, and due on November 18, 2020.

The issuance of the Notes constitutes the first placement of green bonds in the Argentine capital market aligned with the four main components of the ICMA (International Capital Markets Association) Principles of 2018 to be issued following the “Guidelines for the issuance of social shares, Green and Sustainable Notes in Argentina” contained in Annex III of Chapter I of Title VI of the CNV Rules (NT 2013 and mod.)

The issuance was rated by FIX SCR Agencia Calificadora de Riesgo S.A. (Affiliate of Fitch Ratings) as green bond “BV1 (arg)”, the highest possible rating in the market.

Banco Santander Rio S.A., Balanz Capital Valores S.A.U., Macro Securities S.A. e Industrial and Commercial Bank of China (Argentina) S.A., acted as local placement agents and as local arrangers.

The Notes are listed on Bolsas y Mercados Argentinos S.A. and have been admitted for trading on the argentine Mercado Abierto Electrónico S.A.

Legal advisors to AES:

Bruchou, Fernández Madero & Lombardi – socio: José María Bazán y asociados Juan Barros Moss, Cristian Ragucci y Santiago Duhalde.

Legal advisors to the Local Arrangers and the Local Placement agents:

Argentina • Perez Alati, Grondona, Benites y Arntsen – Partner Diego Serrano Redonnet and associates Nicolás Aberastury, Guido Meirovich and Paula Balbi.