We advised on Genneia S.A. US$85,000,000 facility from FMO and FINDEV

New Deal - March 9, 2023

Genneia S.A. (“Genneia”), leading Argentine company specialized in providing sustainable energy solutions, obtained a financing of up to US$ 85,000,000 from Nederlandse Financierings – Maatschappij voor Ontwikkelingslanden N.V. (“FMO”) and Development Finance Institute Canada (DFIC) Inc. (“FINDEV”), for the development and construction of the wind farms “La Elbita I” & “La Elbita II” and the solar farm “Tocota III” (the “Facility”).

The wind farms, “La Elbita I” & “La Elbita II”, has a total output of 140 MW of combined generation capacity and are located in the Buenos Aires province, and the solar farm, “Tocota III”, has a total output of 60 MW PV and is located in the San Juan province.

The security package for the Facility includes a security trust for the assignment of certain receivables of Genneia arising from certain power purchase agreements under the Mercado a Término de Energía Eléctrica de Fuente Renovable (MATER) (the “Security Trust”).

Once the wind farms “La Elbita I” & “La Elbita II” and the solar farm “Tocota III” are developed and construed, Genneia will be the first Argentine company to reach 1,100 MW of installed capacity from renewable sources, thanks to its 11 renewables farms distributed throughout Argentina.

This transaction is also FINDEV’s first financing to an Argentine company.

Matías López Figueroa, partner at Bruchou & Funes de Rioja, said “It is a privilege to have worked with FinDev in its first financing in Argentina, as well as to assist FMO, once again, in a transaction that expands its financing portfolio focused on the development of Argentina’s renewable energy matrix.” Leandro E. Belusci, senior associate at Bruchou & Funes de Rioja, adds, “We are honored to have participated in this important financing related to two projects that will play a very important role in Argentina’s energy transition.”

On the other hand, Diego Serrano Redonnet, partner of Pérez Alati, Grondona, Benites & Arntsen (PAGBAM), said “We are pleased to have advised Genneia in this financing of USD 85 million with a tenor of 10 years for the solar farm “Tocota III” and the wind farms “La Elbita I & II”, for the purpose of satisfying the demand of energy of large industrial users in the term market for renewable energy. With these projects, Genneia will exceed 1 GW of installed capacity. Genneia is a leading company in its sector and in the year 2022 generated 20% of the wind and solar renewable energy in Argentina”.

Alexia Rosenthal, TCA partner, comments “financing aimed at promoting the energy transition towards clean energy and real economy in the country is a great opportunity for the national industry.”

FinDev Canada is Canada’s bilateral development finance institution. It supports development through the private sector in emerging markets and developing economies with financing, investment, blended finance solutions and technical assistance. It aims to promote sustainable and inclusive growth with a focus on climate action, women’s economic empowerment, and market development in alignment with the Sustainable Development Goals and Paris Agreement commitments. FinDev Canada is a Canadian Crown corporation and subsidiary of Export Development Canada (EDC).

FMO is the Dutch entrepreneurial development bank. FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water.

Counsel to Genneia
Pérez Alati, Grondona, Benites & Arntsen (PAGBAM)
On banking & finance matters, partner Diego Serrano Redonnet and on tax matters, partner Facundo Fernández Santos
On banking & finance matters, counsel Tomás Fernández Madero, and associates Alejo Muñoz de Toro and Juan Ignacio Dighero and on tax matters, associate Florencia Gonzalez Klebs.

In-house counsel to Genneia, Eduardo Segura, Delfina Aira and Matías Fraga

Counsel to FMO and FINDEV
Norton Rose Fulbright US LLP
Partner Jeremy A. Hushon.

Bruchou & Funes de Rioja
On banking & finance matters, partner Matías López Figueroa, on tax matters, partner Daniela Rey and on regulatory matters related to the energy sector, partner Ignacio Minorini Lima.

On banking & finance matters, associates Leandro E. Belusci and Branko Serventich, on tax matters, associates Pablo Muir and Cecilia Calosso, and on regulatory matters related to the energy sector, Manuel Mazza.

In-house counsels to FMO, María Fernández-Daza de Flórez y Sabrina Klein.

In-house counsel to FINDEV, Theodore Colombo and Riccardo Lento.

Counsel to Banco Comafi S.A., as trustee under the Security Trust
TCA Tanoira Cassagne
Partner Alexia Rosenthal and associates Ignacio Criado Díaz and Lucía Viboud Aramendi.