Diego Serrano

PAGBAM and Nicholson y Cano assist in San Miguel sustainable bond issue

Nicholson y Cano Abogados has assisted San Miguel A.G.I.C.I. y F., lemon producer and exporter, in its issuance of simple negotiable bonds, linked to sustainability, series VIII. Pérez Alati Grondona Benites & Arntsen assisted the arrangers and underwriters.

The issue was made on 28 November for an amount of US$ 37,810,860, under the framework of the global programme for the issuance of simple negotiable bonds for a nominal value of up to US$ 250,000,000.

The proceeds will be used for working capital, capital goods (financing the development of new plantations and replacement of old plantations that are below their maximum productivity) and refinancing of medium-term liabilities.

The Notes are denominated in US dollars and payable in pesos at the applicable exchange rate; at a fixed rate of 3.5% (which may be increased as detailed below), maturing on 28 November 2024.

In addition, the Notes were issued in line with the Sustainability-Linked Bond Principles contained in the Sustainability-Linked Bond Guidelines and the Regulations for the listing of Negotiable Obligations and Public Securities of the Argentine Stock Exchanges and Markets.

As from the date 15 months after the issue date, the interest rate of the Notes will be increased by (i) 100 basis points, provided that it does not exceed 25% of the applicable interest rate; or (ii) 50 basis points; considering the higher of (i) and (ii), unless San Miguel proves compliance with a sustainability performance target consisting in reaching a 70% share of renewable energy for the supply of its industrial complex, which would imply reaching a 49% reduction of greenhouse gas emissions (CO2 Equivalent) of this subgroup of work sites, within the 12-month period starting on 30 November 2022 and ending on 30 November 2023.

Banco Santander Argentina, Balanz Capital Valores, Allaria Ledesma & Cía., Banco de la Provincia de Buenos Aires, TPCG Valores, BACS Banco de Crédito y Securitización, Global Valores, Max Capital, Facimex Valores, Latin Securities, Stonex Securities, BNP Paribas Sucursal Buenos Aires and Puente Hnos. acted as arrangers and underwriters.

Based in the Province of Tucumán, San Miguel is dedicated to the production, marketing and export of fresh citrus fruits from the southern hemisphere. The company is also a key global player in the processing of value-added citrus products, accounting for 15% of the global lemon grind. It has more than 200 premium international customers in over 50 countries as a reliable citrus producer with high quality standards.

Nicholson y Cano’s team included partner Marcelo Villegas, associates Juan Martín Ferreiro and María Clara Pancotto and paralegal Darío Pessina.

PAGBAM’s team comprised partner Diego Serrano Redonnet (pictured) and associates Nicolás Aberastury, Nahuel Perez de Villarreal, Joaquín López Matheu and Jerónimo Juan Argonz.

L Giselle Estrada