DLA Piper in Argentina advises on the issuance of Sustainable Bonds by the Province of Mendoza and on the refinancing of its debt

DLA Piper in Argentina advised the Province of Mendoza (the Province) on the issuance of its first Sustainable Bonds for an amount of AR$ 4,876,673,332, and New 2024 Bonds for an amount of AR$ 2,633,120,511 as part of its refinancing strategy.

The Sustainable Bonds were issued with a variable interest rate composed of the BADLAR rate plus an annual rate of 5.90 percent and mature on June 21, 2025. The New 2024 Bonds were issued with a variable interest rate composed of the BADLAR rate plus an annual rate of 5.75 percent and mature on December 21, 2024, both secured with Federal Tax Co-Participation Regime resources.

The Province will use the net proceeds from the issuance of the Sustainable Bonds to finance the expansion of Mendoza’s Metrotram system (Metrotranvía), 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 neighborhoods, 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 emissions.

The Sustainable Bonds are listed on the Mercado Abierto Electrónico (MAE) and on the "Social, Green and Sustainable Panel" of Bolsas y Mercados Argentinos (BYMA).

As part of its debt refinancing strategy, the Province offered to exchange all of its outstanding PMJ23 Bonds, which matured in June 2023, for New 2024 Bonds, maturing in December 2024. The Province successfully exchanged more than 50 percent of the total outstanding PMJ23 Bonds, issuing in exchange New 2024 Bonds for an amount of AR$2,633,120,511. The New 2024 Bonds are listed on MAE.

Banco de Galicia y Buenos Aires S.A.U., Banco Santander Argentina S.A. and TPCG Valores S.A.U., acted as Arrangers and Placement Agents of the transaction.
The DLA Piper team that advised the Province of Mendoza was led by partner Justo Segura and included associates Federico Vieyra and Marcelo Ra (all of Buenos Aires).

DLA Piper in Latin America's Team offers full-service business legal counsel to domestic and multinational companies with interests in and operations throughout the region. Our integrated approach to serving clients combines local knowledge with the resources of the DLA Piper global platform. With over 450 lawyers practicing throughout Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Puerto Rico, in addition to our US-based cross-border attorneys, our teams frequently work with our professionals throughout the LatAm region, Iberian Peninsula, and around the globe. DLA Piper’s global platform of 90+ offices in more than 40 countries enables us to serve all our clients’ legal and business needs, whether they are based in Latin America or wish to do business there. For more information, visit Latin America | DLA Piper.