We advised on Genneia S.A.’s issuance of Green Notes for US$70,867,627

On July 14^th, 2023, Genneia S.A. (“Genneia”) issued Notes for a nominal value equivalent to US$70,867,627: (i) Class XXXIX Notes denominated in U.S. Dollars, subscribed in Argentine Pesos or in kind through the delivery of Class XXIX or Class XXXII Notes and payable in Argentine Pesos at the exchange rate established in the offering documents (dollar-linked); (ii) Class XL Notes denominated, subscribed and payable in U.S Dollars (Hard Dollar); and (iii) Class XLI Notes denominated in U.S. Dollars, subscribed in Argentine Pesos or in kind through the delivery of Class XXIX or Class XXXII Notes and payable in Argentine Pesos at the exchange rate established in the offering documents (dollar-linked)  (jointly, the “Notes”).

The Notes comply with (i) the four main components of the ICMA’s (International Capital Market Association) Green Bond Principles 2018 (GBP), (ii) the Guidelines for the Issuance of Social, Green and Sustainable Negotiable Securities in Argentina, as set forth in the Rules of the Argentine Securities and Exchange Commission, and (iii) the Guide to Social, Green and Sustainable Bonds at the Bolsas y Mercados Argentinos S.A. Panel (“BYMA”). In addition, Genneia has a Second Party Opinion issued by Sustainalytics, an external reviewer, confirming that the Genneia’s Green Bond Framework is impactful and aligns with the four main components of the GBP.

Class XXXIX Notes’ will be due 60 months after the issuance date, that is, on July 14^th, 2028. They will accrue interest at a fixed nominal annual rate of 2.00% and they will amortize the principal in one single instalment on the due date.

Class XL Notes’ will be due 24 months after the issuance date, that is, on July 14^th, 2025. They will accrue interest at a fixed nominal annual rate of 5.5% and they will amortize the principal in one single instalment on the due date.

Class XLI Notes’ will be due 36 months after the issuance date, that is, on July 14^th, 2026. They will not accrue interest on their outstanding principal and they will amortize the principal in one single instalment on the due date.

The Notes have been admitted for listing in the SVS Panel of BYMA, and authorized for its negotiation in the Mercado Abierto Electrónico S.A.

FIX SCR S.A. rated the Notes “AA-.ar”.

Under this issuance, (i) Macro Securities S.A.U. acted as placement and arrangement agent; and (ii) Balanz Valores S.A.U., Banco BBVA Argentina S.A., Banco Santander Argentina S.A., Banco de Galicia y Buenos Aires S.A.U. Banco Patagonia S.A., Facimex Valores S.A., Max Capital S.A., BACS Banco de Crédito y Securitización S.A., TPCG Valores S.A.U. y Banco Hipotecario S.A. acted as placement agents ((i) and (ii) jointly, the “Placement Agents”). 

This issuance is part of Bruchou & Funes de Rioja´s Climate Action and Sustainable Business Platform, which has been created to meet the growing demand from its clients on an issue that occupies an expanding space in the global, regional and local corporate agenda. Bruchou & Funes de Rioja considers that urgent climate action is needed to reduce carbon emissions, and to support its clients’ efforts in this regard, in line with the goals set by the UN’s Paris Agreement. In that sense, Bruchou & Funes de Rioja has participated in almost all green bond issues on the local and international market.

Deal Counsel:

Bruchou & Funes de Rioja: counseled Genneia and the Placement Agents through a team led by José María Bazán, and assisted by Manuel Etchevehere, Branko Serventich and Pedro María Azumendi.

In-house counsel: Eduardo Segura, Carlos Lovera and Matías Fraga.