On April 7, the Ordinary and Extraordinary General Assembly of Argentina’s largest private energy group decided to approve an increase in the amount of the Negotiable Obligations (ON) issuance program, transferring it to 2.1 billion US dollars.
The process that forms Part of Pampa Energia’s expansion plan, It was approved by the National Securities Commission (CNV) only at the end of May, when the political, financial and economic scenario of Argentina showed symptoms of instability and volatility that had an impact on business decisions.
What’s more, during the third quarter of 2025, all of the group’s activities are leading Marcelo Mindlin Like other local companies, it had to navigate the path of increasing exchange rates and financial fluctuations.
This scenario is due to the uncertainty associated with the legislative elections that took place on October 26, as the results would have determined the feasibility of moving forward with structural reforms in the field of work, taxes and pensions by the government, which led to a slowdown in economic activity and generated additional challenges to the sustainability of the economy. Financial surplus.
Although this context of volatility and uncertainty persisted, the overwhelming victory of the Libertarian government made the country’s macroeconomic and financial situation clear and ushered in a period of greater certainty and stability that made large groups such as Pampa Energy Resuming business plans and even daring to back these strategies with funds from the capital markets.
Debt rescue
In this sense, the most widely used tool is precisely the issuance of operating guidelines to obtain financing, especially for mega projects, to diversify their sources of financing beyond bank loans, and to raise capital from a broader investing public.
Pampa Energía has as a precedent the reopening of this market to raise funds abroad at the end of last May when it launched a class of 23 ONs for US$340 million, With a fixed annual interest rate of 7.875% and a yield of 8%, maturing in December 2034.
The funds obtained by the group on June 23 were used for the early redemption of all Tier 3 assets for US$300 million of capital due on April 15, 2029.
Then, on August 6, Pampa Energía repeated the process and issued 25 ONs for US$104.6 million, with a fixed annual interest rate of 7.25% and maturing on August 6, 2028.
Now, it has just launched another series of bonds on the market with a 12-year Eurobond, which is a record for an Argentine private company.
Historical period
especially, The holding company offered $450 million to the global market with a coupon of 7.75% and a return of 8.125%.It received offers worth more than $1.5 billion, with a request that included important international investment funds It reached a record period of 12 years.
The placement of these elements has been approved by the Board of Directors Pampa Energy A few weeks ago, its issuance and settlement date was next November 14, and the expiration date was the same day but in 2037.
Additionally, it proposes that the principal of the securities be paid in one lump sum on the maturity day and stipulates that the interest payment dates will always be May 14 between the years 2026 and 2037.
Early buyers include important international financial groups such as Citigroup Global Markets Inc.; Deutsche Bank Securities Inc.; JPMorgan Securities LLC. Santander US Capital Markets LLC and Balans Capital UK LLP.
in this regard, gustavo marianni, The CEO of Pampa Energia considered that the initiative “with an unprecedented deadline for a private Argentine company, reflects investors’ confidence in the financial solidity and growth plan of the group.”
In this sense, the holding company explains through a statement that “the funds obtained will be used for the early repayment of the ON 2026 plan, with a total of 120 million US dollars and a coupon of 9.5%, in addition to the ability to finance the development of Rincon de Aranda, the unconventional oil project that the company is developing in Vaca Muerta.”
Variety
In the case of money They will be used to salvage Class 9 ONsThe operation has been previously approved Pampa Energía Board of Directors on August 8 Totaling just over US$292 million, its capital has been amortized in three tranches, with the last installment due on 8 December 2026.
To approve the plan, the group relied on Article Three of the trust contract signed with Bank of New York Mellonas guardian; and Banco Santander Argentina, as the Argentine registration and transfer agent, Allowing you to perform an early rescue operation.
The company explains in the report sent to CNV that it has already paid the first capital installment on December 9, 2024 in an amount equivalent to 33% of total operations and that it will pay the second capital installment on December 8 in another similar amount.
As for the rest of the money, Pampa Energía proposed to redeem the remaining amount, corresponding to the third tranche, equal to 34% of ONs’ share capital for just over US$60 million. In addition to accrued and unpaid interest and any additional amounts that may apply.
Currently, Pampa Energía is involved in the energy sector, especially in oil and gas production and power generation.
In the first, Develops an important activity in the field of gas and oil exploration and production, The production level in the nine-month period ending September 30 reached 12.9 million m3/day of natural gas and 9.5 thousand barrels/day of oil in 11 production areas and two exploration areas.
The main producing blocs are located in the governorates Neuquen and Rio Negro.
In the case of the part generationdirectly and through its subsidiaries and joint ventures, operates an installed capacity of 5,472 MW, equivalent to approximately 12% of Argentina’s installed capacity, being one of the largest independent generators in the country.
In the region PetrochemicalsIt operates two highly complex plants producing styrene, synthetic rubber and polystyrene with a share of between 86% and 98% in the local market.
Meanwhile, through this part Holding, transportation, etc., Participates in transportation work Energy and gas transportationas it shares control of Citelec, the owner company Transner It is the company specialized in operating and maintaining a high-voltage transmission network with a length of 22,349 km, with a market share of 86% of the transmitted electricity.
In business Gas Transport, a shareholder of CIESA, which in turn is the controlling company of Transportadora de Gas del Sur (TGS)which has a license to transport natural gas, with 9,248 kilometers of gas pipelines in central, western and southern Argentina, and is additionally dedicated to the processing and marketing of natural gas liquids through the Seri complex, located in Bahía Blanca, in the province of Buenos Aires and to the transportation and conditioning of shale gas in Vaca Muerta.
About The Author
