Obbligazione Banco Hipoteca S.A. 9.75% ( US05961AAD54 ) in USD

Emittente Banco Hipoteca S.A.
Prezzo di mercato 100 USD  ▼ 
Paese  Argentina
Codice isin  US05961AAD54 ( in USD )
Tasso d'interesse 9.75% per anno ( pagato 2 volte l'anno)
Scadenza 29/11/2020 - Obbligazione è scaduto



Prospetto opuscolo dell'obbligazione Banco Hipotecario S.A US05961AAD54 in USD 9.75%, scaduta


Importo minimo 50 000 USD
Importo totale 280 701 000 USD
Cusip 05961AAD5
Standard & Poor's ( S&P ) rating CCC+ ( Substantial risks )
Moody's rating Ca ( Default imminent with little prospect for recovery )
Descrizione dettagliata Banco Hipotecario S.A. è una banca uruguaiana specializzata in finanziamenti ipotecari e altri servizi finanziari.

The Obbligazione issued by Banco Hipoteca S.A. ( Argentina ) , in USD, with the ISIN code US05961AAD54, pays a coupon of 9.75% per year.
The coupons are paid 2 times per year and the Obbligazione maturity is 29/11/2020

The Obbligazione issued by Banco Hipoteca S.A. ( Argentina ) , in USD, with the ISIN code US05961AAD54, was rated Ca ( Default imminent with little prospect for recovery ) by Moody's credit rating agency.

The Obbligazione issued by Banco Hipoteca S.A. ( Argentina ) , in USD, with the ISIN code US05961AAD54, was rated CCC+ ( Substantial risks ) by Standard & Poor's ( S&P ) credit rating agency.







Pricing Supplement to Offering Memorandum dated May 31, 2016
US$150,000,000
BANCO HIPOTECARIO S.A.
9.750% Notes Due 2020, Series No. 29, Tranche 2
__________________
This Pricing Supplement relates to a series of notes to be issued under our Global Note Program for the issuance of notes in one or
more series up to an aggregate principal amount at any time outstanding of US$800,000,000, which we refer to as our "Global Note Program."
This Pricing Supplement is supplementary to, and should be read in conjunction with, the Offering Memorandum dated May 18, 2016 relating to
the Global Note Program, which we refer to as the "Offering Memorandum." To the extent that information contained in this Pricing Supplement
is not consistent with the Offering Memorandum, this Pricing Supplement will be deemed to supersede the Offering Memorandum with respect to
the Notes offered hereby.
We are offering US$150,000,000 aggregate principal amount of our 9.750% Notes Due 2020, Series No. 29, which we refer to as the
"Notes." The Notes will be part of the same series as, and will be fungible with, US$200,000,000 aggregate principal amount of our 9.750%
Notes Due 2020, Series No. 29 that we issued on November 30, 2015, which we refer to as the "Original Notes." The Notes will mature on
November 30, 2020. The Notes will accrue interest at a fixed rate of 9.750% per year, payable semi-annually in arrears on May 30 and November
30 of each year, commencing on May 30, 2016. Payment of principal, interest, additional amounts and any other amounts in respect of the Notes
will be made in U.S. dollars. The Original Notes and the Notes will have the same ISIN and CUSIP numbers, except that the Notes offered and
sold in compliance with Regulation S under the Securities Act shall be issued and maintained under temporary ISIN and CUSIP numbers during
a 40-day distribution compliance period commencing on the date of issuance of the Notes.
We may redeem the Notes, in whole or in part, at any time by paying the greater of 100% of the outstanding principal amount of the
Notes and the applicable "make whole" premium amount plus any accrued and unpaid interest and any additional amounts. In the event of certain
changes in Argentine withholding taxes, we may redeem the Notes, in whole but not in part, at any time at a price equal to 100% of the
outstanding principal amount plus accrued and unpaid interest and any additional amounts.
The Notes will constitute our unsecured and unsubordinated obligations and will rank at all times pari passu in right of payment with
our other unsecured and unsubordinated indebtedness (other than obligations preferred by statute or by operation of law), including deposits.
An investment in the Notes involves significant risks. See "Risk Factors" commencing on page 13 of the Offering
Memorandum for a description of certain material risks related to an investment in the Notes.
We have applied to have the Notes listed on the Official List of the Luxembourg Stock Exchange and to trading on the Euro MTF
Market. We have applied to have the Notes listed and admitted for trading on the Mercado de Valores de Buenos Aires S.A. ("MVBA") on the
Mercado Abierto Electrónico S.A. ("MAE").
The Notes will constitute non-convertible notes, or obligaciones negociables simples no convertibles en acciones under the Argentine
Negotiable Obligations Law No. 23,576, as amended (the "Negotiable Obligations Law"), will be issued and placed in accordance with such law,
Law No. 26,831 on Capital Markets (the "Capital Markets Law"), Decree No. 1023/2013 implementing the Capital Markets Law and the rules of
the Comisión Nacional de Valores (the "CNV") (as approved by General Resolution No. 622/13, as amended and supplemented (collectively, the
"CNV Rules")), and will have the benefits provided thereby and will be subject to the procedural requirements therein set forth.
The Notes will not benefit from the Argentine deposit insurance system established pursuant to Argentine Law No. 24,485, as
amended, or the exclusive priority right granted to depositors pursuant to Article 49(d) and (e) of Argentine Law No. 21,526, as amended (the
"Financial Institutions Law"). The Notes will not be secured by any security interest or guarantee and will not be guaranteed by any other means
or by any other entity or person.
The public offering of Notes under the Global Note Program has been authorized by the CNV pursuant to Resolution No. 16,573
dated May 24, 2011. This authorization means only that the information requirements of the CNV have been satisfied. The CNV has not rendered
any opinion in respect of the accuracy of the information contained in this Pricing Supplement or in the Offering Memorandum.
The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or any
state securities laws. The Notes may not be offered or sold within the U.S. or to U.S. persons, except to qualified institutional buyers in reliance
on the exemption from registration provided by Rule 144A under the Securities Act and to certain non-U.S. persons in offshore transactions in
reliance on Regulation S under the Securities Act. For a description of certain restrictions on resales and transfers see "Subscription and Sale" and
"Transfer Restrictions" in the Offering Memorandum.
This Pricing Supplement and the Offering Memorandum shall constitute a prospectus for purposes of part IV of the Luxembourg law
on prospectuses for securities dated July 10, 2015, as amended.
Price: 106.525%, plus accrued interest from November 30, 2015. The total amount of accrued interest payable by purchasers
of the Notes on May 23, 2016 will be US$7,028,125.
We expect that delivery of the Notes will be made to investors in book-entry form through the facilities of The Depository Trust
Company and its direct and indirect participants, including Clearstream Banking, société anonyme and Euroclear Bank S.A./N.V., on May 23,
2016.
Joint Book-Running Managers
BofA Merrill Lynch
Itaú BBA
May 31, 2016


Unless otherwise defined herein, capitalized terms used in this Pricing Supplement shall have the meanings
given to them in the Offering Memorandum. In this Pricing Supplement, unless the context requires otherwise,
references to "we," "our," or "us" mean Banco Hipotecario S.A. and its consolidated subsidiaries.
We have translated some of the peso amounts contained in this Pricing Supplement into U.S. dollars for
convenience purposes only. Unless otherwise specified, our assets and liabilities in foreign currency are valued at
the exchange rate as of each relevant date on period-end according to the Central Bank reference exchange rate for
U.S. dollar. The exchange rate used for purposes of translation of balances as of December 31, 2015 was Ps.13.005
= US$1.00, in accordance with the Reference Exchange Rate (Tipo de Cambio Referencia) published by the Central
Bank (Banco Central de la República Argentina) (the "Central Bank") as of such date. The Federal Reserve Bank of
New York does not report a noon buying rate for pesos. The U.S. dollar equivalent information presented in this
Pricing Supplement is provided solely for the convenience of investors and should not be construed as implying that
the peso amounts represent, or could have been or could be converted into, U.S. dollars at such rates or at any other
rate. See "Exchange Rates and Exchange Controls" in the Offering Memorandum.
The information provided in this Pricing Supplement or in the Offering Memorandum that relates to
Argentina and its economy is based upon publicly available information, and neither we nor the Initial Purchasers
and the Argentine Placement Agents appointed in connection with the issuance of the Notes make any
representation or warranty with respect thereto. Argentina, and any governmental agency or political subdivision
thereof, does not in any way guarantee, and their credit does not otherwise back, our obligations in respect of the
Notes.
You should rely only on the information contained in this Pricing Supplement and the Offering
Memorandum. Neither we, nor the Initial Purchasers or the Argentine Placement Agents, have authorized anyone to
provide you with information that is different from the information contained in this Pricing Supplement and the
Offering Memorandum. The information in this Pricing Supplement and the Offering Memorandum is accurate only
as of the date of this Pricing Supplement. To the best of our knowledge and belief, having taken all reasonable care
to ensure such is the case, the information contained in this Pricing Supplement and the Offering Memorandum is in
accordance with the facts and contains no omission likely to affect their import.
The offer of the Notes in Argentina shall be conducted by means of an offering that qualifies as a public
offering under Argentine law and the Rules of the CNV. In order to comply with those regulations, the placement of
the Notes in the Republic of Argentina will be done through a public auction (Subasta Pública) under the tender
module of the SIOPEL system (the "SIOPEL System") of the MAE, in accordance with applicable CNV tender
rules. See "Placement Efforts and Allocation Process."
In making your decision whether to invest in the Notes, you must rely on your own examination of us and
the terms of the offering, including the merits and risks involved. You should not construe the contents of this
Pricing Supplement or the Offering Memorandum as legal, business or tax advice. You should consult your own
attorney, business advisor or tax advisor.
The accuracy of any accounting, financial and economic information as well as any other information
provided in this Pricing Supplement and in the Offering Memorandum is the sole responsibility of our board of
directors, and our Supervisory Committee and our external auditors as to any aspect within their competence and to
the extent of their respective reports on the accompanying financial statements, and other responsible persons
referred to in Sections 119 and 120 of the Capital Markets Law. Our board of directors hereby expresses as a sworn
statement that this Pricing Supplement and the Offering Memorandum contains, as of the date of publication hereof,
accurate and sufficient information concerning any significant events that may affect our financial and economic
condition and any other information that must be made known to investors under applicable law.
The distribution of this Pricing Supplement and the Offering Memorandum, or any part thereof, and the
offering, sale and delivery of the Notes in certain jurisdictions may be restricted by law. We, the Initial Purchasers
and the Argentine Placement Agents require persons into whose possession this Pricing Supplement or the Offering
Memorandum come to become familiar with and to observe such restrictions. Neither this Pricing Supplement nor
the Offering Memorandum constitute an offer to sell or a solicitation of an offer to buy any Notes in any jurisdiction
to any person to whom it is unlawful to make the offer or solicitation, nor do this Pricing Supplement or the Offering
Memorandum constitute an invitation to subscribe for or purchase any Notes. For a description of restrictions on
offers, sales and deliveries of the Notes and on the distribution of this Pricing Supplement and the Offering
Memorandum, see "Transfer Restrictions" and "Subscription and Sale" in the Offering Memorandum and
"Subscription and Sale" in this Pricing Supplement.
S-i


TABLE OF CONTENTS
Pricing Supplement
Page
Page
Available Information ............................................S-1
Capitalization .........................................................S-8
Risk Factors............................................................S-1
Description of the Notes.........................................S-9
Recent Developments.............................................S-1
United States Federal Income Taxation................S-28
Terms and Conditions of the Notes ........................S-2
Placement Efforts and Allocation Process............S-29
Use of Proceeds......................................................S-7
Subscription and Sale ...........................................S-34
Offering Memorandum
Page
Page
Important Notices..................................................ii
Selected Statistical Information..............................98
Enforcement of Civil Liabilities............................v
Management ..........................................................126
Disclosure Regarding Forward-Looking
Principal Shareholders...........................................145
Statements .............................................................vi
Related Party Transactions....................................147
Available Information ...........................................vii
Argentine Banking System and Regulation...........150
Presentation of Financial and Other Information ..viii
Argentine Insurance System and Regulation.........181
Summary ...............................................................1
Description of the Notes........................................185
Risk Factors...........................................................13
Subscription and Sale ............................................201
Capitalization ........................................................38
Transfer Restrictions .............................................206
Use of Proceeds.....................................................39
Description of Capital Stock .................................208
Ratings...................................................................39
Taxation.................................................................220
Exchange Rates and Exchange Controls ...............40
Independent Accountants ......................................235
Selected Financial and Other Information.............43
Legal Matters.........................................................235
Management's Discussion and Analysis of
General Information ..............................................236
Financial Condition and Results of Operations .....48
Form of Pricing Supplement .................................237
Quantitative and Qualitative Disclosures About
Annex I ­ Summary of Significant Differences
Market Risk ...........................................................74
Between Central Bank Accounting Rules
The Argentine Banking Industry ...........................76
and IFRS................................................................A-1
Business.................................................................82
Index to the Financial Statements..........................F -1
S-ii


AVAILABLE INFORMATION
We filed our consolidated financial results for the three months ended March 31, 2016 with the CNV on
May 13, 2016. Such consolidated financial information is available on the CNV website (www.cnv.gob.ar) and on
our website (www.hipotecario.com.ar), and we will make such consolidated financial information available to
investors. No information included on, or linked to or from, the CNV website or our website, other than our
consolidated financial results for the three months ended March 31, 2016, is or shall form a part of this Pricing
Supplement.
RISK FACTORS
Investing in the Notes involves certain significant risks. Before making a decision to purchase the Notes,
prospective investors should carefully consider the risk factors discussed under "Risk Factors" beginning on page 13
in the Offering Memorandum.
RECENT DEVELOPMENTS
Acquisition of Edificio del Plata
On April 20, 2016, by means of a public auction conducted by the government of the City of Buenos Aires,
we acquired the building known as "Edificio del Plata" to be our corporate headquarters and a branch, for
approximately US$68 million. Edificio del Plata is located at Carlos Pellegrini No. 211/291 ­ Sarmiento No.
980/922, Carabelas No. 222/286 ­ Tte. Gral. Juan Domingo Perón No. 981/993. According to Article 3 of Decree
208/16, we are required to pay (i) 15% of the acquisition price within seven business days from the date of the
public auction and (ii) the remaining 85% when executing the public deed and entering into possession of the
building, which should occur within 365 days of the public auction.
Lifting of injunction imposed on Argentina
On April 22, 2016, as result of the agreements reached with certain holdout bondholders, the Argentine
government paid US$9.3 billion of the outstanding debt to bondholders, putting an end to their claims. With this
payment, judge Thomas Griesa lifted the injunction imposed in 2014, thereby enabling Argentina to pay outstanding
amounts to the 2005 and 2010 exchange bondholders.
S-1


TERMS AND CONDITIONS OF THE NOTES
The following items describe the particular terms and conditions that relate to the Notes and should be
read together with the "Description of the Notes" in the Offering Memorandum, which sets forth certain material
terms of the Notes not set forth in this Pricing Supplement.
1.
Issuer ...............................................
Banco Hipotecario S.A.
2.
Series No. ........................................
29, Tranche 2
3.
Title .................................................
9.750% Notes Due 2020, Series 29
4.
Aggregate Principal Amount...........
US$150,000,000. The Notes will be part of the same series as, and
will be fungible with, US$200,000,000 aggregate principal amount of
our 9.750% Notes Due 2020, Series 29, that we issued on November
30, 2015. The aggregate principal amount of the Original Notes and
the Notes offered hereby will be US$350,000,000.
5.
Issue Price .......................................
106.525%, plus accrued interest from November 30, 2015 to the
Issue Date (totaling US$7,028,125).
6.
Issue Date ........................................
May 23, 2016
7.
Stated Maturity................................
The Notes will mature in a single installment on November 30, 2020.
8.
Interest Rate:
a. Interest Rate...............................
9.750% per annum.
b. Interest Payment Dates ..............
Semi-annually in arrears on May 30 and November 30 of each year,
commencing on May 30, 2016.
c. Regular Record Dates................
May 15 or November 15 immediately preceding the relevant Interest
Payment Date.
d. Day Count Basis ........................
30/360.
9.
Yield to Maturity.............................
8.000%
10.
Specified Currency..........................
U.S. dollars.
11.
Additional Issuances .......................
In the future, we may issue additional notes from time to time and
without notice to, or the consent of, holders of the Original Notes or
the Notes; provided that such additional notes have the same terms
and conditions in all respects as the notes described herein and the
Original Notes (except for the Issue Date, the Issue Price and the first
Interest Payment Date). Any such additional notes will constitute a
single series with the Notes offered hereby and the Original Notes;
provided that if the additional notes are not fungible with the Notes
offered hereby and the Original Notes for U.S. federal income tax
purposes, such additional Notes will be issued with a separate
identification code from the Notes offered hereby and the Original
Notes.
S-2


12.
Payments .........................................
Payments in respect of the Notes will be made by us in U.S. dollars
outside Argentina to The Depository Trust Company ("DTC"), or its
nominee.
13.
Redemption for Taxation
Reasons ...........................................
The Notes may be redeemed at the option of the Bank in whole, but
not in part, at any time, on giving not less than 30 nor more than 60
days' written notice (which will be irrevocable) to the holders and, if
applicable, the CNV, in writing, at 100% of the principal amount
thereof, together with any accrued but unpaid interest and any
Additional Amounts to the date fixed for redemption, if, as a result of
any change in, or amendment to, the laws (or any regulations or rules
issued thereunder) of Argentina or any political subdivision of or any
taxing authority in Argentina or any change in the application,
administration or official interpretation of such laws, regulations or
rules, including, without limitation, the holding of a court of
competent jurisdiction, the Bank has or will become obligated to pay
Additional Amounts on or in respect of such Notes, which change or
amendment becomes effective on or after the date of issuance of the
Original Notes, and the Bank determines in good faith that such
obligation cannot be avoided by the Bank taking reasonable measures
available to it.
14.
Optional Redemption ......................
At any time, or from time to time, the Bank may, at its option,
redeem the Notes, in whole or in part, at a redemption price equal to
the 100% of the outstanding principal amount of such Notes and a
"make whole" amount plus accrued and unpaid interest and any
additional amounts, as described under "Description of the Notes--
Redemption and Repurchase--Optional Redemption."
15.
Ranking ...........................................
The Notes will constitute obligaciones negociables simples no
convertibles en acciones (simple, non-convertible notes) under
Argentine law and will be issued pursuant to, and in compliance with,
all of the requirements of the Negotiable Obligations Law and any
other applicable Argentine laws and regulations.
The Notes will constitute our unsecured and unsubordinated
obligations and will rank at least pari passu in right of payment with
our other unsecured and unsubordinated indebtedness (other than
obligations preferred by statute or by operation of law).
16.
Additional Amounts ........................
All payments of principal, premium or interest by us in respect of the
Notes will be made without withholding or deduction for or on
account of any present or future taxes, penalties, fines, duties,
assessments or other governmental charges of whatever nature
imposed or levied by or on behalf of Argentina, or any political
subdivision thereof or any authority therein having power to tax
("Taxes"), unless we are compelled by law to deduct or withhold
such Taxes. In any such event, subject to certain exceptions, we will
pay such additional amounts ("Additional Amounts") in respect of
Taxes as may be necessary to ensure that the amounts received by
holders of such Notes after such withholding or deduction will equal
the respective amounts that would have been receivable in respect of
such Notes in the absence of such withholding or deduction. See
"Description of the Notes--Additional Amounts."
S-3


17.
Use of Proceeds...............................
We will use the proceeds from the issuance of Notes in compliance
with the requirements set forth in article 36 of the Negotiable
Obligations Law, Communication "A" 3046, as amended and
supplemented by Communication "A" 5571, of the Central Bank and
other applicable regulations. See "Use of Proceeds."
18.
Defeasance ......................................
The defeasance provisions in the Indenture will apply to the Notes;
provided that in order to exercise either the legal defeasance or
covenant defeasance, we must (i) irrevocably deposit with the
Trustee U.S. dollars in such amount as will be sufficient to pay the
principal, interest, Additional Amounts and any other amounts in
respect of the Notes then outstanding on the Stated Maturity of the
Notes, and (ii) comply with certain other conditions, including,
without limitation, the delivery to the Trustee of opinions of
nationally recognized counsels in the United States and in Argentina
experienced in such tax matters to the effect that the deposit and
related defeasance would not cause the holders of the Notes to
recognize income, gain or loss under the tax laws of the applicable
jurisdictions as well as to other relevant matters.
19.
Minimum Denominations................
US$50,000 and multiples of US$1,000 in excess thereof.
20.
Minimum Subscription Amount......
US$100,000 and multiples of US$1,000 in excess thereof.
21.
Value for Purposes of
Computing Voting Rights ...............
Each US$1.00 of principal amount of the Notes entitles the holder to
one vote for purposes of computing voting rights.
22.
Listing and Trading .........................
The Original Notes are listed, and we will apply to have the Notes
listed, on the Luxembourg Stock Exchange for trading on the Euro
MTF Market and listed and admitted for trading on the MVBA and
the MAE. The Initial Purchasers are not obligated to make a market
in the Notes, and any market making with respect to the Notes may
be discontinued without notice. Accordingly, there can be no
assurance as to the maintenance or liquidity of any market for the
Notes.
23.
Syndication
a. Joint Book-Running
Managers ...................................
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
Itau BBA USA Securities, Inc.
b. Argentine Placement Agent
and Co-Placement Agent ...........
Banco Itaú Argentina S.A.
BACS Banco de Crédito y Securitización S.A.
24.
Form of Notes .................................
The Notes will initially be issued in the form of one fully registered
Restricted Global Note and one fully registered Regulation S Global
Note.
S-4


25.
Codes...............................................
The Original Notes and the Notes will have the same CUSIP and
ISIN numbers, except that the Notes offered and sold in compliance
with Regulation S shall be issued and maintained under temporary
CUSIP and ISIN numbers during a 40-day distribution compliance
period commencing on the date of issuance of the Notes.
a. CUSIP........................................
Rule 144/A: 05961A AD5
Regulation S: P1330H BF0 (permanent)
Regulation S: P1R23Z AH0 (temporary)
b. ISIN ...........................................
Rule 144/A: US05961AAD54
Regulation S: USP1330HBF03 (permanent)
Regulation S: USP1R23Z AH04 (temporary)
c. Common Code Number.............
Rule 144/A: 132806438
Regulation S: 132806489 (permanent)
Regulation S: 142039346 (temporary)
26.
Governing Law................................
New York State law; provided that all matters relating to the due
authorization, execution, issuance and delivery of the Notes by us,
and matters relating to the legal requirements necessary in order for
the Notes to qualify as obligaciones negociables under Argentine
law, will be governed by the Negotiable Obligations Law together
with Argentine Business Companies Law No. 19,550, as amended
and other applicable Argentine laws and regulations.
27.
Jurisdiction ......................................
We will irrevocably submit to the non-exclusive jurisdiction of any
state or federal court sitting in the Borough of Manhattan, City of
New York, United States of America, any Argentine court sitting in
the City of Buenos Aires, including the ordinary courts for
commercial matters and the Tribunal de Arbitraje General
(Permanent Arbitral Tribunal) of the Bolsa de Comercio de Buenos
Aires (the "Buenos Aires Stock Exchange" or the "BCBA") under the
provisions of Article 46 of the Capital Markets Law and by virtue of
the delegation of authority granted to the MVBA regarding the
constitution of arbitral tribunals, in accordance with the delegation of
powers of the MVBA set forth in Resolution No.17,501 of the CNV
(the "Arbitral Tribunal of the BCBA"). Notwithstanding the
foregoing, in accordance with Article 46 of the Capital Markets Law,
holders may submit disputes regarding the Notes to the non-exclusive
jurisdiction of the Arbitral Tribunal of the BCBA in accordance with
Article 46 of the Capital Markets Law or the judicial commercial
courts of the City of Buenos Aires, at the option of the holder at
question. In turn, in cases where the current rules provide for the
accumulation of actions brought for the same purpose before a single
court, the accumulation will be made before the judicial tribunal.
28.
Clearance.........................................
The Notes will be delivered in book-entry form through the facilities
of DTC and its direct and indirect participants, including Clearstream
Banking, société anonyme ("Clearstream") and Euroclear Bank
S.A./N.V. ("Euroclear").
29.
Trustee, Co-Registrar, Paying
Agent and Transfer Agent ...............
Deutsche Bank Trust Company Americas
S-5


30.
Registrar, Local Paying Agent,
Local Transfer Agent and
Representative of the Trustee in
Argentina.........................................
Deutsche Bank S.A.
31.
Luxembourg Listing Agent,
Paying Agent and Transfer Agent ...
Deutsche Bank Luxembourg S.A.
S-6


USE OF PROCEEDS
Our proceeds from the issuance and sale of the Notes are expected to be approximately US$158 million,
plus accrued interest, after deduction of fees and expenses. We will use the proceeds from the issuance of the Notes
in accordance with the provisions of Article 36 of the Negotiable Obligations Law, Communication "A" 3046 of the
Central Bank, as amended and supplemented by Communication "A" 5571, of the Central Bank, as amended, and
other applicable regulations, for:
·
working capital in Argentina;
·
investments in tangible assets located in Argentina; or
·
loan origination in accordance with Central Bank regulations and Central Bank Accounting Rules;
provided that such loans are used for any of the above purposes.
Pending their final application, we expect to invest the proceeds in government securities and other short-
term investments.
S-7