PAGBAM advises the association Techo on issuance of negotiable bonds
PAGBAM has assisted the association Un Techo Para Argentina in its debut on the capital market to finance its projects
Pérez Alati, Grondona, Benites & Arntsen has advised Un Techo Para Argentina Asociación Civil, as Issuer, Allaria Ledesma & Cía S.A., Banco Hipotecario S.A., Banco de Galicia y Buenos Aires S.A.U. and Banco Santander Río S.A. as Arrangers, Structurers and Placement Agents and Argenpymes S.G.R., Acindar Pymes S.G.R. and Crecer S.G.R. as Guarantors in the issuance of Class I Negotiable Obligations under the SME CNV Guaranteed regime.
This is the first issue of social bonds made by a Civil Association and will make history in the Argentine capital market on October 26, 2021, by issuing the Class I Negotiable Obligations under the SME CNV Guaranteed regime for a total nominal value of 18,000,000 Argentine pesos maturing in 2025, at a Badlar +0% interest rate and at an issue price of 100% of the nominal value.
Universidad Tres de Febrero, which acted as Risk Rating Agent, was in charge of assessing the instrument and concluded that it is aligned with the four components of the ICMA 2020 Social Bond Principles. The marketable bonds were awarded BS2 social bond status.
Although the NGO is present in 19 countries, only in Argentina did it try to raise funding through the capital market, instead of resorting to a bank loan. The amount raised will be used for the construction of a social factory, which will enable the association to produce emergency housing that will then be built in settlements.
Un Techo Para Argentina is an NGO dedicated to improving the quality of life of those most in need through the promotion, management and advice of projects for the development of housing programmes.
PAGBAM’s team was led by partner María Gabriela Grigioni (pictured left), associates Natalia Sofía Güttner (pictured top center), Nahuel Perez de Villarreal (pictured bottom center), Eugenio Bauer (pictured top right), Diego Frost (pictured bottom right) and Juan Francisco Vignati Otamendi and paralegal Jerónimo Juan Argonz.
