Argentine Firm Tecnovax Secures $5 Million for New Plant Construction

Argentine animal health company Tecnovax has successfully raised US$5 million through a new issuance of corporate bonds. This financial operation will significantly advance the company's strategic growth plan, primarily by funding the construction of a new industrial plant and enabling the refinancing of existing short-term financial liabilities.

The bond issuance reportedly garnered substantial interest from investors, with the company securing favorable financing terms. This marks another step in Tecnovax's expansion strategy, following its entry into the capital markets in 2023 with a green bond issuance and a subsequent reopening of that placement in 2024.

According to the company, the newly raised capital will be directed towards expanding its biopharmaceutical capacity through the new industrial facility. Additionally, the funds will help optimize its financial structure by refinancing short-term commitments. Diego La Torre, CEO of Tecnovax, stated, "We are carrying out a strong global growth plan, accompanied by investments in innovation, new product development, biopharmaceutical capabilities, and commercial expansion in new markets, based on a proven business model that is in full international scaling."

The issuance saw strong demand, with offers reaching $7.22 billion pesos in the peso-denominated tranche, of which $5.72 billion were awarded. The dollar-denominated tranche issued US$1.13 million. The dollar bonds were placed at a fixed annual nominal rate of 6.48%, while the peso tranche was structured at the TAMAR rate plus a 5% margin. Moody's Local Argentina assigned both tranches a stable A.ar rating, recognizing the company's credit quality.