Saturday , February 27 2021

Mercado Libre: Galperin’s Company Plays Debt for Millionaire




The company led by Marcos Galperín closes with investors the sale of securities for a sum of 1.1 billion dollars Source: Archive

Free market closed the placement of two bonds for US $ 1.1 billion, The company led by Marcos Galperin sold to its investors the securities issued by the public offering made last week in two parts of US $ 700 and 400 million. The purpose of the operation was to repay the company’s debt,





It was about the sale of “senior guaranteed bonds”, which means that in a hypothetical event that the company goes bankrupt, bondholders will have priority over other debtors, One of the issued securities is sustainable, so it will be used to finance environmental projects and reduce the impact on the environment.

“This first sustainable bond is a new milestone in our 21-year history. In this sense, the growth of our platform requires that we increasingly contribute to the societies in which we operate, to be efficient in our energy consumption, to keep up. go ever cleaner mobility and innovate in our strategies to limit our social and environmental impact through the whole value chain, “said Pedro Arnt, CFO of the e-commerce company.





The company defines an interest rate of 2,375% for the environmental bundle with an expiration date in 2026. The other has a rate of 3,125% and expires in 2031, The issue of titles was collateralized with a business asset Therefore, if the term expires, and Mercado Libre can not pay, the creditors will be able to count on these assets to collect their credit.


The company made the public offering of the billionaire bonds and in less than a week they were taken over in their entirety by investors
The company made the public offering of the billionaire bonds and in less than a week they were taken over in their entirety by investors Credit: Courtesy Mercado Libre


The problem is designed for buyers outside the country, especially large Wall Street players, Following the announcement last Thursday of going out to place debt in dollars for a billion-dollar figure, it remained only to define the interest rate. Mercado Libre decided to go high on the NASDAQ, one of the New York shares, and in less than a week the bonds were fully purchased.

Part of the proceeds from the green bundle will be used for the company to fund projects for sustainable energy, ecological architecture and other variables that have a sustainable goal and environmental impact.

In an official statement, the company announced that the bond will also have a societal purpose of providing loans to SMEs and entrepreneurs, as well as educational developments aimed at young professionals who have just entered the job market.

Mercado Libre is the most valuable company in Argentina in terms of market capitalization and by 2020 it tripled its value, more than US $ 81,000 million in market value.


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