The Company achieved an 83% adherence to the Exchange Offer of its Global Notes “Series XX” and Private Notes for US$ 553 million, exceeding all initial expectations.
Genneia issued US$ 366 million aggregate principal amount of 8.75% Senior Secured Green Bond due 2027 (“Series XXXI”). This is the first Argentine Corporate Green Bond placed in the international capital market.
The new notes are collateralized by the cashflows from Genneia’s Madryn wind farms, the largest wind farm in Argentina.
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Buenos Aires, August 31st, 2021. Genneia, the leading renewable power generation company in Argentina, concluded the exchange of US$ 553 million in Global and Private Notes due January 2022, by achieving an 83% adherence.
On the Settlement Date, the Company will issue US$ 366 million aggregate principal amount of new Notes “Series XXXI”. This is an extraordinary achievement for Genneia, placing the first Argentina Corporate Green Bond in the international capital market.
Bondholders who selected Option A will receive US$ 1,015 principal amount of new Notes “Series XXXI” per US$ 1,000 principal amount of “Series XX” Notes. In turn, bondholders who selected Option B will receive US$ 710 in new Notes “Series XXXI” and US$ 298 in cash per US$ 1,000 of “Series XX” Notes.
The new Senior Secured Green Bonds will have a fixed coupon rate of 8.75% with 10 equal semi-annual amortizations starting in March 2023 until September 2027. In addition, these Green Bonds are backed by the revenues from Argentina’s largest wind farm: Genneia’s Madryn wind farms. The investors’ adhesion level surpassed the Company’s initial expectations, confirming once again the market’s trust in Genneia. Apart from its inherent attractiveness as a green bond, the early exchange – 5 months before maturity— and the combination of cash plus additional notes consideration, also contributed to the success of the transaction. It should be noted that this exchange significantly reduces the Company’s refinancing needs in 2022 and decompresses the needs to use reserves from the Central Bank (BCRA).
From 2016 to 2021, Genneia invested over US$ 1 billion in its Renewable Energy Expansion Plan. The investment meant Genneia’s major transformation towards a more sustainable energy profile. As a result, Genneia gave the environment an uplift by delivering +700 MW of new renewable energy capacity, disconnecting 205 MW of thermal capacity from the grid and reducing substantially its GHG emission.
About Genneia
Genneia is Argentina’s leading company in the supply of sustainable energy solutions, accounting for 25% of the wind power’s installed capacity in the country. Genneia is the undisputed industry leader and one of the ten largest generators in South America.
With the development of its Rawson, Trelew, Madryn, Chubut Norte, Villalonga, Pomona and Necochea wind farms, the company has reached a wind power capacity of 784 MW, and over 866 MW of renewable energy considering its Ullum solar farm (82 MW) located in the Province of San Juan.
Genneia’s credit profile improves quarter on quarter, as shown by its leverage ratio, which decreased to 3.1x, and high liquidity used to repay its indebtedness. In the last twelve months, Genneia’s EBITDA reached US$243 million.
Over 90% of Genneia’s sales are denominated in U.S. dollars under long term power purchase agreements (PPA) and more than 77% derive from renewable energy assets. In addition, over 50% of Genneia’s revenues are backed by FODER and Sovereign guarantees, and some of its contracts have the World Bank’s support.
For more information visit Genneia’s IR website:
https://www.genneia.com.ar/site/en/investors.php
For additional press information, call:
Adriana Shimabukuro
Communications Head
+54 11 6090 3200
ashimabukuro@genneia.com.ar
Priscila D´Angelo
Press – Lanusse Consultores
+54 9 11 6801-4750
priscila@lanusse.ar