Central Puerto issues $50 million in debt for Vaca Muerta push

Central Puerto raised $50 million through corporate notes at a 6% annual fixed rate to expand its operations in Vaca Muerta, mining, and power generation. The transaction drew $61.77 million in bids, exceeding the initial $30 million target.

The company reported nearly 3,000 bids to the Argentine securities regulator, the Comisión Nacional de Valores (CNV). Issued at par value, the debt matures on October 8, 2029, and offers an internal rate of return of 6.09%.

The placement aligns with a broader capital reallocation. Central Puerto entered the hydrocarbon sector by acquiring Patagonia Energy, which holds the Aguada del Chivato and Aguada Bocarey assets in Neuquén. The company also agreed to buy natural gas directly from Pluspetrol under regulatory changes that allow generators to source their own fuel. In mining, it is evaluating copper opportunities following prior experience in lithium.

According to Bloomberg, the company carried out share buybacks and sold its stake in AbraSilver, the developer of the Diablillos gold and silver project in Salta, for 228.4 million Canadian dollars (about $163 million). Central Puerto had invested 35.7 million Canadian dollars, securing a gain of 192.7 million Canadian dollars and a 6.4-fold return on invested capital. Following the sale, it scheduled an extraordinary dividend of 247,344 million Argentine pesos, or 164 Argentine pesos per share, paid on September 25. On Wall Street, its American depositary receipts have dropped around 28% year to date.