16 June 2021

Argentine fertiliser maker issues inaugural bonds

Argentine fertiliser manufacturer Profertil has enlisted local law firm Severgnini, Robiola, Grinberg & Tombeur to make an inaugural bond issuance worth US$25 million.

Pérez Alati, Grondona, Benites & Arntsen (PAGBAM) advised the placement agents.

The transaction closed on 15 June.

The bonds have a fixed interest rate of 2.49% and were issued under Profertil’s global notes programme, through which it can issue debt for up to US$500 million.

The notes are denominated in US dollars and payable in Argentine pesos.

The deal comes as the South American country is struggling to emerge from the covid-19 pandemic that has worsened its already fragile economy. The peso has rapidly depreciated against the US dollar since the start of 2018, as numerous economic challenges were piling up for Argentina. In early 2018, US$1 was worth nearly 19 pesos, now it is worth some 96 pesos.

The country restricted foreign currency purchases in 2019 and companies now need to request permission from the Central Bank to buy foreign currency and make transfers abroad. In addition, the Argentine government has sought to defer all debt payments to the International Monetary Fund to deal with the crisis.

Buenos Aires-headquartered Profertil produces and sells fertilisers. The company has five distribution points in Argentina for the production and storage of crop nutrients.

Counsel to Profertil

Severgnini, Robiola, Grinberg & Tombeur

Partners Carlos Tombeur, Matías Grinberg, Francisco Lagger and Javier Tarasido, and associate Sofía Fuentes

Counsel to Santander, Banco de Galicia y Buenos Aires, SBS Trading and Banco de la Provincia de Buenos Aires

Pérez Alati, Grondona, Benites & Arntsen (PAGBAM)

Partner Diego Serrano Redonnet and associates Nicolás Aberastury, Nahuel Perez de Villarreal and Pablo Vidal Raffo.

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