CAF grants A/B loan for USD 300 million to YPF S.A. to support its climate change adaptation and mitigation strategy
January 27, 2022
CAF’s A/B loan will consist of a Tranche A of USD 37.5 million and a Tranche B of USD 262.5 million, thus mobilizing private capital from four highly experienced international financial institutions: Santander, Itau Unibanco, Industrial and Commercial Bank of China Limited, Dubai (DIFC) and Cargill Financial Services International.
The CFO of YPF, Alejandro Lew, and CAF’s, Development Bank of Latin America, representative for Argentina, Santiago Rojas, signed an A/B loan agreement for USD 300 million, through which CAF confirms its commitment to continue supporting the country and its productive sector. The transaction marks an important milestone, since it means the return of YPF to the international financial market. It is also one of the company’s first financings aligned with emissions reduction, climate change mitigation and green projects.
The A/B loan structure allowed the following to participate in the operation under the auspices of CAF—the facility’sLender of Record—, which include three renowned international banks with a shared Lead Arranger role and a non-bank financial institution: Santander (USD 90 million), Itau Unibanco (USD 60 million), Industrial and Commercial Bank of China Limited, ICBC Dubai (DIFC) (USD 60 million) and Cargill Financial Services International (USD 52.5 million). The facility is subject to New York Law, and was advised by the law firms of Norton Rose Fulbright in New York and Martinez de Hoz y Rueda in Argentina.
This operation is in line with CAF’s goal of becoming the green bank of Latin America and the Caribbean, promoting green financing for both the public and private sectors in those regions for the benefit of the population and the sustainability of the planet.