Watson Farley & Williams (“WFW”) has advised the Paris branch of Deutsche Bank AG and Crédit Agricole Corporate and Investment Bank (“CACIB”) in relation to a Coface-supported loan facility for Axion Energy Argentina SA (“Axion”) in order to finance an extraction and sulfur processing unit project.

Deutsche Bank AG acted as structuring bank, mandated lead arranger, facility agent, security trustee and account bank and together with co-mandated lead arranger, CACIB, arranged a US$ 73 million export credit agency-backed facility for Axion, one of Argentina’s major refining and fuel distribution companies. Axion is to use the funds for the financing of a commercial contract with Prosernat, a French exporter.

The commercial contract includes the design, project management, supply of equipment, engineering and construction of an extraction and sulfur processing unit and is part of the expansion of its existing refinery in Argentina.

WFW advised the lenders, Deutsche Bank AG (Paris branch) and CACIB, on both the English and French law aspects of the transaction.

The international WFW Finance team was led in London by Daisy East (partner) and in France by Alexia Russell (senior associate), supported by Charles Viggers (partner, Paris) and assisted by Frederick Phillips (associate, London).

The law firm Allende & Brea advised the lenders and Perez Alati, Grondona, Benites, Arntsen & Martinez de Hoz (h) advised the borrower on the Argentine law issues.

Alexia Russell, senior associate, who led the transaction from the Paris office comments: “We are delighted to continue to advise Deutsche Bank AG in additional transaction areas which draw on our energy sector expertise. This deal was particularly complex considering that the facility structured had to be compliant not only with the credit risk requirements of Coface and the banks but also with the OECD guidelines and Central Bank of Argentina policy. This is also one of the largest ECA transactions in Argentina since 2001.

“The successful transaction has allowed Axion to access US dollar funding on a long term basis under very competitive conditions. Having both English and French skilled lawyers within Watson Farley & Williams Paris office greatly contributed to the smooth handling of this deal.”