On 9 February 2024, the Province of Mendoza issued Additional Sustainable Bonds for an amount of AR$ 3,193,326,668, in addition to the Sustainable Bonds issued on 21 June 2023 for AR$ 4,876,673,332 under the Prospectus dated 12 June 2023. The value of the outstanding Sustainable Bonds is currently $8,070,000,000,000.
The Additional Sustainable Bonds were issued with a variable interest rate composed of the BADLAR rate plus an annual rate of 5.90% and mature on 21 June 2025, and are secured by resources from the Federal tax co-participation regime.
The Province will use the net proceeds from the issuance of the Additional Sustainable Bonds to finance the progress of the expansion of the Mendoza Metrotram system, in accordance with the guidelines of ICMA's "Sustainable Bonds Guide". The project aims to expand the existing tram network, enabling its extension into new neighbourhoods, significantly reducing travel times, reducing traffic accidents and promoting the use of renewable energy by increasing the use of public transport, while reducing carbon dioxide (CO2) emissions. The Additional Sustainable Bonds are listed on the Mercado Abierto Electrónico (MAE) and on the "Social, Green and Sustainable Panel" of Bolsas y Mercados Argentinos (BYMA).
Banco de Galicia y Buenos Aires S.A.U., Banco Santander Argentina S.A. and TPCG Valores S.A.U., acted as Placement Agents of the transaction.
Legal advisors to the Province.
The Province of Mendoza was advised by in-house counsels Natalia Bruno, Nicolás Egues and Ignacio Barbeira.
Legal advisors to the Placement Agents
Bruchou & Funes de Rioja advised Banco de Galicia y Buenos Aires S.A.U., Banco Santander Argentina S.A. and TPCG Valores S.A.U., through partner Alejandro Perelsztein and associates Manuel Etchevehere and Malena Tarrío.