Cross-border team helps CAF close US$375m loan to YPF

Lawyers from Norton Rose Fulbright's Washington, DC and São Paulo offices represented Banco de Desarrollo de América Latina y el Caribe (CAF), the development bank of Latin America, in the closing of a US$375m A/B loan to Argentina's state-run oil company, YPF, with a seven-year tenor.

The B loan was funded by Banco Santander SA, Industrial and Commercial Bank of China Limited (Panama Branch), Cargill Financial Services International, Inc., Citigroup Inc., Bank of China Limited (Grand Cayman Branch) and Banco Latinoamericano De Comercio Exterior SA.

The loan will be used to expand the refining capacity of ultra-low sulfur fuels at the La Plata and Luján de Cuyo plants, as well as drive technological change towards less polluting engines in accordance with sustainability protocols.

When the enhancements are complete in 2026, YPF will produce 71 percent of total ultra-low sulfur fuels, a significant increase from its current 24 percent rate. This will generate a lower emission of sulfur dioxide, which will result in a major improvement in air quality.

The project will generate more than 1,600 jobs during the construction period.

Norton Rose Fulbright's deal team was led by Sarah Devine (Washington, DC) and José Cobeña and also included Cameron Royse (São Paulo).