DLA Piper and Bruchou advise on Mendoza’s new issuance
DLA Piper Argentina has advised the Province of Mendoza, and Bruchou & Funes de Rioja the underwriters and sub-underwriter, in its issuance of Class 1 CER Debt Securities and Class 2 CER Debt Securities.
The issue took place on March 14th, where the Class 1 CER Debt Securities were issued for an amount of $ 37,314,776,000, with an issue price of $ 1.0178 per each NAV and a maturity date of December 14th, 2025; and the Class 2 CER Debt Securities for an amount of $ 39,724,100,806, with an issue price of $ 0.9600 per each NAV and a maturity date of March 14th, 2027. Both Debt Securities were issued under the Prospectus dated 11 March 2024.
The principal of the Debt Securities will be adjusted according to the variation of the Reference Stabilization Coefficient (CER) and the Debt Securities are guaranteed with resources from the Federal Coparticipation of Taxes.
The Province will use the net proceeds from the issuance of the Debt Securities to cancel debt amortization services foreseen in the 2024 budget.
Banco de Galicia y Buenos Aires, Banco Santander Argentina and TPCG Valores, acted as underwriters; and Adcap Securities Argentina acted as sub underwriter.
DLA Piper’s team included partner Justo Segura (pictured left) and associates Federico Vieyra and Marcelo Ra.
Bruchou’s team comprised partner Alejandro Perelsztein (pictured right) and associates Manuel Etchevehere, Malena Tarrío and Sofía Maselli.
