The province of La Rioja has announced that it will not make the payment of interest due on the "Green Bond" maturing in 2028, which was operated on February 24. This decision was announced through a note sent to the Buenos Aires Stock Exchange, explaining that the payment will not be made due to ongoing negotiations with creditors.
"Thanks to that we are growing in megawatts. Today we continue to grow in renewable energy," said the Minister of Production and Environment of La Rioja, Ernesto Pérez. He also described the issuance of the bond in 2016 as a "mess" and expressed his disagreement with the financing conditions at a rate of 12% when the prevailing rate did not exceed 4%.
The Green Bond was issued to finance the Arauco Wind Farm and is set to mature in 2028, after being restructured in 2021. This title, which has an annual yield of 8.5%, has a total value equivalent to 318.4 million US dollars. They emphasized that it is the only bond under renegotiation, while the rest of the bonds continue to be paid punctually.
