Santander Argentina: Guarantee Program to Boost SME Financing in Argentina

proposed

The transaction consists of a revolving, uncommitted guarantee (the "Facility") in favor of Banco Santander Argentina S.A. (“Santander Argentina” or the “Bank”), which provides coverage for corporate confirming portfolios corresponding to eligible anchor companies based in the country and which are clients of Santander Argentina (the “Anchor Companies”), with the aim of generating capital savings and applying them to the expansion of financing to suppliers in the Small and Medium-Sized Enterprises ("SMEs") segment.The Facility will be operated on an unfunded basis, under which IDB Invest may, at its sole discretion, issue guarantees in favor of Santander Argentina to cover the factoring operations of certain Anchor Companies (in the form of unfunded participations connected to SBLCs). The amount of the transaction will be up to US$50 million or its equivalent in local currency. The Facility will enable suppliers of Santander Argentina's Anchor Company clients to expand their capacity to receive financing on competitive terms, facilitating the possibility of shortening the cash conversion cycle by advancing the payment of their accounts receivable.