PAGBAM assists in the issuance of San Miguel Negotiable Obligations
Pérez Alati, Grondona, Benites & Arntsen has represented the underwriters in the issue of Negotiable Obligations of San Miguel A.G.I.I.C.I y F.
Pérez Alati, Grondona, Benites & Arntsen has assisted the underwriters in the issuance by S.A. San Miguel A.G.I.C.I. y F. of Notes Series VII, under its Global Note Program for the issuance of Notes for a nominal value of up to $160,000,000 US dollars.
The notes, issued on 18 January 2022 for $50,000,000 US dollars, at a fixed rate of 3%, maturing on 18 January 2024. From the date 15 months after the issue date, the interest rate on the Series VII Notes will increase by 100 basis points to 4% per annum, unless San Miguel demonstrates compliance with a sustainability performance target of 70% renewable energy to supply its industrial complex, which would mean achieving a 49% reduction in greenhouse gas emissions (CO2 Equivalent) from this subset of sites within 12 months beginning 31 January 2022 and ending 31 January 2023.
The proceeds will be applied to the integration of working capital, capital goods (financing the development of new plantations and replacement of old plantations that are below their maximum productivity) and the refinancing of medium-term liabilities.
The Series VII Negotiable Obligations constituted a new issue of negotiable obligations issued in the Argentine capital market in line with the ICMA (“International Capital Market Association”) Sustainability-Linked Bonds (“SLBs”) Principles of June 2020.
In this issue PAGBAM advised the underwriters Banco Santander Río S.A. and HSBC Bank Argentina S.A. -which acted as arrangers-, Balanz Capital Valores S.A.U., Allaria Ledesma & Cía. S.A., AR Partners S.A., Puente Hnos. S.A., Banco de la Provincia de Buenos Aires, Banco Comafi S.A., BACS Banco de Crédito y Securitización S.A., Max Capital S.A., TPCG Valores S.A.U. and Global Valores S.A. While Nicholson y Cano Abogados acted as counsel to San Miguel.
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 the world leader in the processing of value-added citrus products, accounting for 15% of the global lemon grind. San Miguel is recognised by its more than 200 premium international customers in over 50 countries as a reliable citrus producer with high quality standards.
The Nicholson y Cano Abogados team included partners Marcelo Villegas and Emiliano Silva, as well as associates Juan Martín Ferreiro and Jésica Pabstleben, and paralegal Darío Pessina.
PAGBAM’s team was led by partner Diego Serrano Redonnet (pictured left), assisted by associates Nicolás Aberastury (pictured right) and Adriana Tucci.
