The birth of Stellantis at a global level will have an impact at a local level, the union of FCA and PSA Group will create the automobile with the largest production capacity in Argentina. The Fiat plant in Cordoba is capable of producing some 100,000 vehicles a year. The Peugeot-Citroën factory in Buenos Aires can assemble up to 160,000 cars in two shifts. Between the two factories, they would be able to produce about 260,000 units per year.
JP Morgan announced that it donated a total of $50 million to support the foundations’ recovery and inclusion efforts in Argentina: Foundations, SES, Still Time, Pro-Women and the Let’s Be One program. The donation is part of the JP Morgan Chase Foundation’s global action and commitment to match every dollar of contributions that its employees can make voluntarily to the Global FoodBanking Network.
The improved proposal would move from a six-month scheme, starting in September 2021, to the previously announced annual plan beginning in March 2022. The new bonds will maintain the original terms in 2025, the same interest rate of 8.5% but will be amortized in eight semi-annual instalments, beginning September 23, 2021. An increase in cash payments for early bird investors included from $100 in cash and $950 in new bonds for every 1000 bonds issued to a unique combination of $125 in cash and $925 in new bonds. Those entering the swap in the second term – July 17-30 – will receive a $50 cash payment and the same bonus for $950.
The Albanesi Group, dedicated to the commercialization of energy and gas, closed on Tuesday financing with the international bank JP Morgan for $14.8 million at 5.5 years and a rate of Libor + 1%. The credit will be guaranteed by Eximbank, the United States Export Credit Agency. It will be for the maintenance of the power plants and will allow them to have a capacity of 1,520 Mw of thermal generation in the provinces of Río Negro, Córdoba, Tucumán, Santiago del Estero, La Rioja, Santa Fe and Buenos Aires.
Banks are asking a New York judge to subpoena more documents from bankrupt soy-export giant Vicentin SAIC, saying they may have been the victims of “major international financial impropriety. The banks are persisting with a discovery process — started in February as Vicentin went bankrupt — because they suspect about $400 million was drained into sister companies. Vicentin said that it isn’t aware of the request for new documents but that it has collaborated fully so far with the discovery procedure.
The reactivation plan of the dairy cooperative SanCor is already underway, in the coming weeks will be established a trust through the Bank of Investment and Foreign Trade (Bice) with which the firm would access working capital of 1.5 billion pesos ($21.26 mn). The company currently processes about 650,000 litres of milk per day and expects in the medium term to bring that figure to 800,000 litres. The final plan is to reach in 2021, the 1.5 million litres per day.
YPF announced yesterday a proposed swap to extend the maturity of a $1 billion international bond. The paper matures in March 2021. The proposal is to offer those who join a cash payment and a new series of Negotiable Obligations with final maturity in 2025. Thus, for every $1,000 face value of Class XLVII, the investor will get $100 cash and $950 face value of a new series.
Two major car paint manufacturers announced in the last hours that they would stop producing in the country as a result of the crisis caused by the pandemic both locally and globally. They are the German company Basf and the American company Axalta. The German company will move production to the state of Sao Paulo but will continue to operate commercially in the country through imports. On the other hand, the American company announced that it is withdrawing from the local market definitively.
The departure of Latam from Argentina means that it stops flying to 12 domestic destinations, three regional ones (Sao Paulo, Santiago de Chile and Lima) and one international one (Miami). Yesterday, the date was set to begin negotiations on the future of the 1,715 employees who will be fired when Latam Airlines completes its exit from Argentina.
Arcor will go out today to the capital market to seek funding through the issuance of negotiable bonds indexed to the official dollar, for which it expects to get at least 500 million pesos ($7.09 mn). They will earn interest equivalent to the Badlar rate for private banks, currently at 29.63% per year, plus a cut margin to be established on the day of the auction and will have a term of 15 months.