We advised Crédit Agricole Corporate and Investment Bank, Hong Kong Branch, on the structuring and granting of a financing to POSCO Argentina S.A.U. for a total amount of up to US$110 million.
The transaction was structured through two facilities. The first consists of a financing to POSCO Argentina S.A.U. for up to US$90 million, comprising a financial tranche of up to US$80 million and a commercial tranche of up to US$10 million. The second consists of a commercial facility of up to US$20 million granted to POSCO Argentina S.A.U. – Dedicated Branch, incorporated under the Large Investment Incentive Regime (Régimen de Incentivo a las Grandes Inversiones, or RIGI), created by Law No. 27,742.
The financial tranche granted to POSCO Argentina S.A.U. is intended to finance working capital and activities related to the Sal de Oro Project. The commercial tranches, in turn, are intended to fund commercial obligations connected with the acquisition of goods and services, including direct payments by the lender to suppliers abroad.
The facility granted to POSCO Argentina S.A.U. – Dedicated Branch is intended to finance Phase 2 of the Sal de Oro Project, a lithium project located in the Province of Salta. The Dedicated Branch was incorporated under the RIGI framework for the purpose of developing and investing in the project.
The transaction involved a complex financial and commercial structure, with documentation governed by foreign and Argentine law, as well as a specific analysis of corporate, regulatory and foreign exchange matters related to the financing of investment projects under the RIGI regime.