Hugo Bruzone

Bruchou assists in La Rioja’s green bond issue

Bruchou & Funes de Rioja has assisted in the issuance of debt securities of the province of La Rioja for a total nominal value in two classes of US$ 55,005,344. The issuance was made on 20 July with the purpose of generating sources of financing to promote and/or support the execution of public works in renewable energy.

Class I of the debt securities were issued in the amount of US$6,000,000 with a fixed interest rate of 4.5% nominal per annum, and mature on 20 January 2027. Class II debt securities were issued with a fixed interest rate of 7.5% nominal per annum and mature on 20 July 2032. The repayments of the Green Bonds are secured by a trust and collateral assignment agreement entered into between Parque Eólico Arauco (PEA) and Banco de Valores S.A. dated 13 July 2023.

The Green Bonds are aligned to (i) the four main components of the ICMA (International Capital Market Association) 2018 Green Bond Principles (GBP), and (ii) the Guide for Social, Green and Sustainable Bonds in the Argentinean Stock Exchanges and Markets Panel (BYMA).

The Province will use the net proceeds from the issuance of the Green Bonds to finance mainly the construction and maintenance of the “Arauco I” Photovoltaic Solar Park owned by PEA. The Province aims to apply the proceeds of the Green Bonds in such a way as to extend energy efficiency in the Province and thereby have a positive environmental impact. The Green Bonds are listed on the Mercado Abierto Electrónico (MAE) and on BYMA’s “Panel Social, Verde y Sustentable”.

Balanz Capital Valores acted as arranger and underwriter, and Nación Bursátil, Parakeet Capital and Banco Santander Argentina acted as underwriters.

Bruchou’s team consisted of partner Hugo Nicolás Bruzone (pictured), together with associates Leandro E. Belusci, Manuel Etchevehere and Pedro María Azumendi.

L Giselle Estrada

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