O’Farrell worked alongside YPF EnergíaEléctrica S.A. (YPF Luz) in the issuance of the first Argentinean green bond.
We advised YPF Luz. in the issuance of Series XI Notes for an aggregate value of US$15,000,000 due 2024; and Series XII Notes for an aggregate value of US$85,000,000 due 2026, both subscribed in-kind with Series IV, Additional Series IV and Series VIII Notes, under YPF Energía Eléctrica’s US$1,500,000,000 Global Medium-Term Notes Program.
YPF Luz issued this green bond for a total amount of US$ 63.9 million at a rate of 5% and with a final maturity of 10 years. It is a dollar linked green bond which funds will be used for the construction and operation of the company’s first solar farm in the province of San Juan.
The green bond issue was rated by FIX, an affiliate of Fitch Ratings, which concluded that the Class X Notes issued by the company are aligned with the four main components of the ICMA (International Capital Market Association) Green Bond Principles (GBP), generating a positive environmental impact.
The Zonda Solar Park will generate photovoltaic solar energy, obtained by transforming solar radiation energy into electrical energy. In a first stage, it is estimated to generate 100 MW, expandable to 300 MW, equivalent to the consumption of 70,000 homes. YPF Luz will sell the clean energy generated to large users and industrial customers in the Renewable Energy Term Market (MATER).
When the project completes all its stages, it will expand the current renewable generation capacity by 25% in San Juan. The solar farm will generate carbon emissions savings of 120,000 tn. CO2 equivalent per year, compared to an equivalent thermoelectric power plant.
Below, you will find links regarding the activity:
https://latinlawyer.com/article/ypf-luz-makes-inaugural-green-bond-offer
https://greenfinancelac.org/es/recursos/novedades/ypf-luz-emitio-su-primer-bono-verde/
https://www.latinfinance.com/daily-briefs/2022/1/17/ypf-luz-to-tap-local-bond-market