• The leading renewable energy company announces the issuance of two notes on the local market that qualify as green bonds.
• The proceeds will be used in financing the new Solar Photovoltaic Project Sierras de Ullum, in the Province of San Juan.
• The tender process will take place on December 21, 2021.
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Buenos Aires, December 17, 2021. Genneia, a leading renewable energy generation company in Argentina, announces the issuance of two new Notes on the local market, for an aggregate amount to be issued equal to USD 40 million, which may be increased up to USD 80 million. These are the fourth and fifth instruments of the company to qualify as green bonds.
The tender process for the Notes on the local market will take place on December 21, 2021, and the proceeds will be used in financing the Solar Photovoltaic Project Sierras de Ullum in the Province of San Juan. These Notes will be admitted to the Social, Green and Sustainable Bond (SVS) panel of ByMA, the local stock exchange on which the main capital market players trade securities, and it is available for any investor– individuals or institutions- willing to make a profit while also contributing to providing environmental solutions.
Such instruments are Dollar-linked i.e., they are denominated in Dollars and will be paid in Pesos at the initial exchange rate. Other characteristics of the Notes:
• Series XXXV Notes will accrue a fixed interest rate to be bid, payable quarterly, bullet, subject to a 3-year maturity.
• Series XXXVI Notes will accrue a fixed interest rate to be bid, payable quarterly and to be repaid in 12 equal and biannual installments starting on the 54th month and subject to 10-year maturity.
Banco Macro will act as Arranger, while Macro Securities, Balanz, BACS, Banco Hipotecario and Banco Santander will act as Placement Agents. Nuevo Chaco Bursátil will act as Sub-Placement Agent. “After successfully completing our 1 billion investment plan, Genneia continues to drive renewable energies and productive investment in Argentina with environmentally friendly projects,” said Carlos Palazón –CFO of the company.
New Solar Photovoltaic Project
The Solar Photovoltaic Project Sierras de Ullum, located in the south-central area of the Province of San Juan will have an installed capacity estimated at 80 MW, equivalent to the approximate consumption of 50,000 households. The selected site extends over 100 hectares and is located on National Route 54. The area where the project will be situated hosts other three Solar Farms of Genneia in operation: Ullum I, Ullum II and Ullum III with an aggregate capacity of 82 MW.
The project will have over 150,000 bifacial solar panels. Such technology will enable the production of energy on both sides of each panel and will capture the sunlight reflected off the ground to increase generation by 6%.
Over 400 people will work directly on the project over an estimated period of 14 months, including the concept design and project execution, interconnection to the Argentine Interconnection System (SADI) and start-up.
“The energy produced by Sierras de Ullum will be entirely supplied to the corporate market, which is the main growing segment for renewable energies in the upcoming years. Today, the private sector is undertaking a key commitment toward reduction of its carbon footprint and projects like this one will help companies in their journey to a more sustainable profile,” said Bernardo Andrews –the company’s CEO.
Moody’s Local initiates a credit rating review on Genneia
In addition to the issuance of the two new Notes to finance the Project Sierras de Ullum, Genneia was assigned a new credit rating by Moody’s Local: A+.ar with a positive outlook for the long-term debt denominated in local currency.
The new rating assigned by Moody’s reflects Genneia’s positioning as the leading renewable energy generation company in Argentina with a solid operating history. In turn, it is worth noting that 93% of the company’s sales derive from long-term contract revenues.
The ratings assigned to Genneia are supported by a solid liquidity profile, decreasing indebtedness levels, a high level of interest hedging, and an adequate maturity profile in line with cash generation and a conservative financial policy.