Bruchou in issuance of additional sustainable bonds of Mendoza
Bruchou & Funes de Rioja has advised the underwriters in the issuance by the Province of Mendoza of its Additional Sustainable Bonds for an amount of ARS $3,193,326,668 in addition to the Sustainable Bonds issued on 21 June 2023 for ARS $4,876,673,332 under the Prospectus dated 12 June 2023.
The issue was made on 9 February 2024. The value of the outstanding Sustainable Bonds currently stands at $8,070,000,000.
The Additional Sustainable Bonds were issued with a variable interest rate composed of the BADLAR rate plus a rate of 5.90% per annum, and mature on June 21, 2025, and are secured by resources from the federal tax co-participation regime.
The Province will use the net proceeds from the issuance of the Additional Sustainable Bonds to finance progress on the expansion of the Metrotranvía de Mendoza system, in accordance with the guidelines of ICMA’s “Sustainable Bond Guide”. The project aims to expand the existing tram network, enabling its extension into new neighbourhoods, significantly reducing travel times, reducing traffic accidents and promoting the use of renewable energy by increasing the use of public transport, while reducing carbon dioxide (CO2) emissions. The Additional Sustainable Bonds are listed on the Mercado Abierto Electrónico (MAE) and on the “Panel Social, Verde y Sustentable” of Bolsas y Mercados Argentinos (BYMA).
Banco de Galicia y Buenos Aires, Banco Santander Argentina and TPCG Valores acted as underwriters of the transaction.
The Province of Mendoza was advised in-house by Natalia Bruno, Nicolás Egues and Ignacio Barbeira.
Bruchou’s team comprised partner Alejandro Perelsztein (pictured) and associates Manuel Etchevehere and Malena Tarrío.
