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The Province of Tierra del Fuego - Consent Solicitation - Launch

The Province of Tierra del Fuego (A Province of the Republic of Argentina) - Announces Commencement of Consent Solicitation - US886516AC70 - USP91528AA03

27 OCTOBER 2023


Full announcement including disclaimers and offer restrictions available via Prnewswire: Source: The Province of Tierra del Fuego


"TIERRA DEL FUEGO, Argentina, Oct. 27, 2023 /PRNewswire/ -- In light of new Argentine Central Bank Regulation issued on June 1, 2023, (Communication "A" 7782), the Province of Tierra del Fuego (the "Province") announced today that it is seeking to modify the terms of its 8.950% Secured Amortizing Notes due 2027 (the "Notes") and to that end it has commenced a solicitation of consents from Eligible Holders (as defined below) to amend the Notes, the indenture governing the Notes (the "Indenture") and the Collateral (as defined in the Indenture) (the "Consent Solicitation"). The Consent Solicitation is being made on the terms and subject to the conditions set forth in the consent solicitation statement dated October 27, 2023 (the "Consent Solicitation Statement").


The following table sets forth certain information relating to the Notes:"


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"Background for the Consent Solicitation


On June 1, 2023, Communication "A" 7782 issued by the Argentine Central Bank established that item 3.17 of the FX Regulations shall also be applicable, beginning on June 2, 2023, to local governments', including the Province's, capital maturities corresponding to issues of debt securities registered abroad, other financial indebtedness abroad or issues of debt securities with public registration in Argentina and denominated in foreign currency. In the case of maturities for transactions registered up to July 18, 2023, item 3.17 of the FX Regulations requires the mandatory refinancing of principal maturities of liabilities denominated in foreign currency. Subject to certain exceptions, access to the foreign exchange market is now limited to 40% of the principal due, with the remaining 60% now required to be refinanced with new indebtedness with an average life of two years. Plans for any such refinancing must be previously submitted to the Central Bank in order for access to the foreign exchange market to be granted.


As a result of these new regulations, the Province intends to pay the upcoming principal amortization and interest payment falling due on October 17, 2023 in accordance with currently applicable laws and regulations (including the foreign exchange limitations described above) and the terms and conditions of the Indenture and the Notes, including through funding a portion of the payment through amounts currently held in the Debt Service Reserve Account (as defined in the Indenture).


We have not registered the Consent Solicitation or the Notes under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities law. The consents may not be solicited in the United States or to any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Consents are being solicited only from holders of the Notes that are: (1) "qualified institutional buyers" as defined in Rule 144A under the Securities Act ("QIBs") or (2) outside the United States in compliance with Regulation S under the Securities Act ("Regulation S") and otherwise eligible to receive this solicitation under the laws of their jurisdiction (each, an "Eligible Holder"). Only Eligible Holders who have certified that they are within one of the categories described in the immediately preceding sentence via the Consent Website are authorized to receive and review the Consent Solicitation Statement and to participate in the Consent Solicitation."


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