DLA Piper in 2nd tranche of Chubut Conversion Bond issue
DLA Piper Argentina has advised the Province of Chubut in the extension of the issuance of the Conversion Bond for up to AR$ 1,849,678,824 outstanding, issuing on January 17, 2023 an additional second tranche for a total amount of AR$ 683,516,403.
This second tranche matures on March 15, 2031 and was issued at a nominal annual variable rate equivalent to the Badlar rate.
The issuance was made under the framework of Article 8 of National Law No. 27,574 and its Regulatory Decree No. 458/2021, which provide that the refinancing agreements between the Provinces and the ANSES arising from the “Acuerdo Nación – Provincias”, subscribed on May 23, 2016, must provide for an option to convert the principal due to a bond with medium-term maturity to be subscribed by the ANSES Sustainability Guarantee Fund.
The Conversion Bond is secured with proceeds from the Federal Tax Coparticipation Regime, and was listed for secondary trading on the Argentine Stock Exchange and Markets (BYMA) and the Electronic Open Market (MAE).
DLA Piper Argentina’s team comprised partner Justo Segura (pictured), and associates Federico Vieyra and Marcelo Rá.
