Pampa Energía Raises US$138 Million Locally for Investment Projects

Pampa Energía has successfully raised US$138.4 million in the local market through the issuance of a new series of dollar-denominated negotiable obligations. The four-year bonds carry an annual interest rate of 5.5%.

This financial operation supports the company's advancement on two key investment projects: a new urea plant in Bahía Blanca and the oil development at Rincón de Aranda in Vaca Muerta. The company issued Negotiable Obligations Class 28, with a nominal value of US$138,387,000, maturing in August 2030. Interest payments will be made semi-annually, with the principal repaid in a single installment at maturity.

The funds raised are earmarked for financing investments in physical assets within Argentina. This includes productive and infrastructure projects related to Pampa Energía's oil and gas, electricity generation, and fertilizer businesses. The capital can also be used for refinancing existing liabilities, working capital, and other purposes permitted by regulations.

Pampa Energía, led by Marcelo Mindlin, has a substantial investment program. The planned urea plant in Bahía Blanca is projected to cost around US$2.7 billion and is expected to be the largest in the region. Concurrently, the company is progressing with the Rincón de Aranda project in Vaca Muerta, a significant oil venture involving an investment exceeding US$4.5 billion, aiming for a production of 45,000 barrels per day by 2027.

Both the fertilizer plant and the Rincón de Aranda project have received approval to be included in Argentina's Regime for Incentives for Large Investments (RIGI). The urea plant project aims to boost local production of urea, a crucial input for the agricultural sector.