Ad Hoc Group of Jujuy Bondholders Reaches an Agreement with the Province on Restructuring Terms

NEW YORK, March 2, 2021 /PRNewswire/ -- Following constructive discussions with representatives of the Province of Jujuy (the "Province"), the ad hoc bondholder group (the "Ad Hoc Group") of the Province confirms it has reached agreement with the Province on the terms of a proposed debt restructuring. The Ad Hoc Group intends to support a consent solicitation expected to be launched shortly by the Province to effect certain amendments (the "Amendments") to its 8.625% Green Bond due 2022 (the "Green Bond") in line with the agreed terms set out in the Province's press release published yesterday.

The Green Bond was originally issued primarily for the purpose of funding the construction of the 300 MW Cauchari solar project ("Cauchari"), which entered full commercial operations in September 2020. Cauchari, one of the largest and most efficient solar parks in Latin America, is a testament to the vision of the Jujuy government. Cauchari will not only produce clean, carbon-free power for decades to come, but also provide important and stable revenues for the Province to fund projects targeting social inclusion and poverty alleviation. The recent announcement by Governor Morales on the construction of 258 schools in the Province to be funded from revenues generated by Cauchari is a tangible example of the positive development impact that can be achieved through productive cooperation between provinces and international capital markets.

The Amendments are the product of good-faith negotiations between the Province and its bondholders and, if implemented, will provide the Province with appropriate cash flow relief in the form of coupon reductions and maturity re-profiling to assist in navigating the unexpected challenges it has faced attributable to the Covid-19 pandemic.

The Ad Hoc Group appreciates the responsible approach with which the Province conducted negotiations with its bondholders.  Following the agreement with the Ad Hoc Group and if the requisite consents under the indenture governing the Green Bond are obtained such that the Amendments become effective, the Province will be able to restructure the Green Bond without any default on its payment obligations thereunder.  This track record should assist the Province should it seek to attract funding for future projects.

Negotiations for the Ad Hoc Group were led by VR Advisory Services Ltd. The Ad Hoc Group holds more than 50% of the outstanding principal amount of the Green Bond.

Media Contact: Madeline Delaney, [email protected]

SOURCE White & Case LLP

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