They highlight that gasoline rose six times more than light in the last three years

The company edenor pointed out that in the last three years their income They barely improved 31%, far behind inflation and the price adjustments of other strategic companies for the economy such as gasoline, which rose 195%.

The electricity distributor, which operates in the north and west of the City of Buenos Aires and the suburbs, regretted that the Government recognized this year an increase of just 8% in its margin (Distribution Added Value, VAD), which represented an increase of $2.9 billion, “well below the requirement of $56.8 billion, necessary to carry out the operation and maintenance of the company”.

In addition, the company maintained that the adjustment of 31% accumulated since January 2019 in the income of the distributors, together with increases in the seasonal and transport prices, implied a go up 30% in the electricity bill of residential users.

Edenor: “naphtha rose six times more than electricity in the last three years”

“When making a comparison against other services, we see that in the last three years the price of public transport increased by 126%telephony and internet 167%, gasoline 195%, prepaid medicine 202% and education 274%, and the same would happen with any other good or service in the economy against which we would like to compare the increase in bill,” said Federico Méndez, Edenor’s Planning Manager, at the public hearing.

Household disposable income is limited. That other services increase by 100 or 200% and electricity distribution by only 30% is unfair, arbitrary and unconstitutional, but what is more serious is that it is an error that puts the quality of service at risk and possible blackouts ” Mendez concluded.

The distributors stressed that the next increase in rates does not imply any improvement in their accounts, but will be exclusively as a result of a reduction in subsidies.

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The Edenor company pointed out that in the last three years its income barely improved 31%

Edenor managed to extend its debt payment terms

The distributor controlled by a company in which the entrepreneurs participate Daniel Villa Y Joseph Louis Manzano obtained the approval of more than 73% of its creditors to extend the maturity of two series of Negotiable Obligations (ON), from October this year to October 2025.

The strategy has goal to buy some time to normalize your financial scenariocompromised by the official policies of freezing and limited increases in invoices that the ruling party has been applying in recent years and that are expected to continue beyond the increases that will be launched from next June and the segmentation of users promoted by the Ministry of Energy and the National Electricity Regulatory Entity (ENRE) for this year and 2023.

A month ago, the largest energy distributor in the country had started the exchange offer period for the (ON) Class No. 9 maturing on October 25, 2022 at a fixed interest rate of 9.75% nominal annual per an outstanding value of US$98 million for new Class NI securities, denominated in dollars, at a fixed interest rate of 9.75% nominal annual with a payment term established for 2025.

These are securities that are part of the Global Program for the Issuance of Simple Negotiable Obligations (not convertible into shares) for US$750 million.

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Edenor has just managed to defer the payment of part of its debt for three years.

Creditors support Edenor that manages to stretch the payment of a debt

In July of last year, the company had obtained an extension waiver to cancel these ONs through a “Consent Request” which was achieved to defer the payment obligation contained in the trust agreement of October 25, 2010 signed between Edenor and The Bank of New York.

The deal contained a clause known as a “poison put” which, according to financial dictionaries, grants certain rights to bondholders of a company about to be purchased and triggers in the event of a hostile bid causing those creditors to have the right to sell their bonds to the company generally at par or above par.

But the partners of the Empresa de Energia del Cono Sur who landed in Edenor last December as majority shareholders, convinced their creditors to defer that payment obligation to “avoid a breach or event of compliance under the Negotiable Obligations as a result of said omission. “.

After this support, the distributor offered two options to adhere to the exchange: a bond for a bond and another with a part in cash and the rest in titles that can reach up to 30% of the total.

high adhesion

Now, the company has just informed the National Securities Commission (CNV) that, After the end of the term to adhere to the exchange offer, it obtained 73.25% approval from the holders of the ONs for a total of US$71.8 million.

Of this figure, 42.53% (representatives of bonds for US$41.6 million) chose the first variant, while another 30.72% (US$30.1 million) were behind the second option.

At a time when the Government defines a new tariff scheme, the distributor managed to delay the payment of part of its debt

While the Government defines a new tariff scheme, the distributor managed to delay the payment of part of its debt

It also reported that the nominal value of the new ONs to be issued will exceed more than US$52.7 million, while the outstanding nominal value of the existing titles will be US$26.2 million.

As for the interest rate of the New ONs, it will be fixed at 9.75% annual nominal, with an issue date agreed for next May 12.

payment method

In this regard, Edenor recalls that it will pay for each US$1,000 face value of existing ONs validly presented and accepted for exchange as follows:

1) under Option A, a nominal value of New ON for US$1,050 as Advance Consideration A.

2) under option B, a value of US$715.23 as pro rata cash consideration and a nominal value of new ONs of US$296.16 as advance consideration in new ONs.

In both cases, it will also pay the amount corresponding to the payment of accrued interest, while the interest of the new ONs will be paid on May 12 and November 12 of each year, beginning on November 12 of this year.

In addition, these are securities labeled as Social Bond that respond to the requirements of investors in relation to ESG standards, by Environmental, Social and Governance, in accordance with the recommendations of the National Securities Commission (CNV) and BYMA.

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