[IMPORTANT: Make this 4 times longer with much more detail]
Get the news on sustainable finance & investment in Latin America Email * Company * Δ NEWSLETTER DELIVERED MONTHLY THANKS TO Argentine energy and mining company Pecom Servicios Energía said Wednesday that it plans to sell its inaugural bond in the local market next week, joining a rush of debut issues as investor demand runs high. Pecom will start out the offer for the four-year, US dollar-denominated bonds at $30 million and increase the amount to as much as $100 million, depending on demand, it said in a securities filing. The bonds will pay an interest rate to be set at the end of the auction on March 6, and the proceeds will be used for investment, refinancing debts and working capital, Pecom added. The deal is a latest effort by the firm to refinance its debt at lower costs and longer maturities. In December, the company borrowed $47 million from banks for this same purpose. ADVERTISEMENT IDB Invest – Science Dyes in Green Honduras’ Textile Industry A leading company in the sector adopted a decarbonization strategy to reduce its emissions and demonstrate that sustainability and profitability can go hand in hand. The bond issuance also comes after Pecom entered the upstream oil sector. The company acquired two maturing conventional oil blocks from state-run YPF last year in the southern province of Chubut , where it aims to invest in enhanced recovery techniques to boost production from a floor of 10,000 barrels per day. In November last year, Luis Pérez Companc , Pecom’s president and co-owner, told LatinFinance that the firm was planning to seek financing for projects in Argentina, buoyed by Argentina’s fledgling economic recovery from a financial crisis that began in 2018. Pecom also plans to step up its investments in electricity and mining, led by copper and lithium. The bond sale is being managed by Galicia and Santander, which is handling the bookrunning along with Balanz and ICBC. BUOYANT MARKET Pecom and other local corporates are entering the bond market for the first time at a time of strong investor demand. On Wednesday, YPF, the country’s biggest energy company, said it printed $199 million worth of two short-term notes denominated in dollars, twice the amount it had sought, after demand surpassed $220 million. YPF sold $140 million worth of two-year bonds at 6.25% and $59 million of six-month notes at 3.5%, with the proceeds to go toward investments, working capital and refinancing. River Plate, a professional soccer club, also found demand for its debut deal, raising ARS12 billion ($11.3 billion) in the sale of two-year social bonds after demand came in at almost twice that amount. The club priced the Argentine peso-denominated notes at 3.89% over Tamar, a local reference rate now at 29%. More Sustainable Finance & Investment News FREE TO READ THANKS TO Cargill buys out SJC Bionergia investors BBVA México signs new SLL BBVA Perú prints gender bonds Aegea gets fresh BNDES financing GDPar to price second Brazil bond Aguas Andinas returns to Chile market with ESG bond CABEI plans sterling bond debut CCR secures renewables supply Nafin to sell more social bonds GeoPark, ATP Towers, Ambipar print global bonds IFC supports BV solar financing Ambipar, Interbank, Buenaventura line up fresh issuance Load more posts Something went wrong. Please refresh the page and/or try again.
