We advised on the issuance of secured green bonds by the Province of La Rioja for US$55,005,344

On July 20, 2023, the Province of La Rioja (the “Province”) issued two classes of green bonds for an aggregated nominal value equivalent to US$ 55,005,344 aiming to generate sources of financing to promote and/or support the execution of public investments in renewable energy projects.

The class I green bonds were issued for an amount of US$ 6,000,000, with a fixed annual nominal interest rate of 4.5% and due on January 20, 2027 (the “Class I Bonds”). The class II green bonds were issued for an amount of US$ 49,005,344, with a fixed annual nominal interest rate of 7.5% and due on July 20, 2032 (the “Class II Bonds”, together with the Class I Bonds, the “Green Bonds”). Payments due under the Green Bonds are secured by a trust and collateral assignment agreement entered into by Parque Eólico Arauco S.A.P.E.M. (hereinafter, “PEA”) and Banco de Valores S.A. dated as of July 13, 2023.

The Green Bonds comply with (i) the four main components of the ICMA’s (International Capital Market Association) Green Bond Principles 2018 (GBP), and (ii) the Guide to Social, Green and Sustainable Bonds at the Bolsas y Mercados Argentinos S.A. Panel (“BYMA”).

The Province will use the net proceeds from the issuance of the Green Bonds to finance primarily the construction and maintenance of the “Arauco I” Photovoltaic Solar Park owned by PEA. The Province aims to apply the proceeds from the Green Bonds in such a way as to extend energetic efficiency in its jurisdiction and thus deliver a positive environmental impact. The Green Bonds are listed on the Mercado Abierto Electrónico (MAE) and on the “Social, Green and Sustainable Panel” of BYMA.

Balanz Capital Valores S.A.U. acted as Arranger and Placement Agent, and Nación Bursátil S.A., Parakeet Capital S.A. and Banco Santander Argentina S.A. acted as Placement Agents of the transaction.

Legal counsel to the Province, the Arranger and Placement Agents

Bruchou & Funes de Rioja advised the Province of La Rioja, Balanz Capital Valores S.A.U., Nación Bursátil S.A., Parakeet Capital S.A. and Banco Santander Argentina S.A., led by partner Hugo Nicolás Bruzone together with associates Leandro E. Belusci, Manuel Etchevehere and Pedro María Azumendi.