Since the global crisis took hold, Argentina’s corporates have struggled to source funding in the capital markets. Working capital needs are thus driving corporates to explore other financing avenues such as loans from multilateral agencies, commercial banks and the newly nationalized pension funds.
Lending activity is beginning to pick up, especially for deals that involve co-lending between multilateral agencies and commercial banks. Pan American Energy (PAE), a local oil and gas company, is poised to receive a $100 million A/B loan this month, with commercial banks providing $80 million and the International Finance Corporation, the World Bank’s private-sector arm, and CAF, the Andean Development Bank, the rest. The IFC’s board will discuss the potential loan in the coming weeks. The multilateral has begun to...
