Shares of Argentine oil-and-gas producer YPF (YPF) were down 1.4% Wednesday afternoon despite news of $220 million in financing for a joint electricity project with General Electric (GE).
The Global X MSCI Argentina trade exchanged store (ARGT) was down 0.5% in late exchanging. YPF shares confront weight today from the drop in vitality costs, with the universal Brent cost down over 3% at $47.93 per barrel in late exchanging. YPF shares are up 34% this year, while the Argentina ETF is up over 28%. Be that as it may, the financing is uplifting news and terrible news for the two YPF ventures, which are among a modest bunch in Argentina utilizing GE turbines and are half-total. On is slated to begin business operations in December, and the other in February 2018.
According to a press release, GE's energy financial services unit secured financing from Citi, Credit Suisse and Export Development Canada (EDC). The move marked the first power plant project financing in Argentina in almost 20 years as the government works to increase electricity supply with hydroelectric, thermal and renewable energy sources. Local lenders may be tapped out, according to the press release:
"... The significant capital requirements for the ongoing and upcoming power tenders are likely to exceed the appetite of local lenders and draw participation by international lenders seeking to return to Argentina, and revive the market for non-recourse project finance.
'This project finance is an important milestone for YPF as it completes the funding of all our power projects under construction, therefore proving the ability of YPF Energía Eléctrica to continue to grow with its own balance sheet,' said Daniel González, YPF´s chief financial officer. ..."
While YPF is know for hydrocarbon and fuel production, it also operates gas stations, produces lubricants and produces products for agriculture.