Argentine lithium producer Exar, operating in the Cauchari-Olaroz salt flat in Jujuy, has announced its first-ever issuance of Corporate Bonds (Obligaciones Negociables, ON), marking a first for the sector in the country. The bond auction will take place on Thursday, September 7, and the funds raised will primarily be allocated to working capital and refinancing liabilities to support the company's ongoing operations.
By Panorama Minero
Exar will offer its bonds in two distinct classes. Class I will have a 3-year term, be issued in US dollars, and carry a fixed interest rate. Class II, dollar-linked, will have a 2-year term and also feature a fixed interest rate. The minimum subscription for both classes is set at US$100, making the investment accessible to a broad range of investors.
Santander and ICBC will serve as lead organizers and underwriters for the offering. In addition, several prominent financial institutions, including Banco Galicia, Banco BBVA, Banco Comafi, Balanz, and others, will act as underwriters to facilitate the distribution of these bonds in the financial market.
Exar’s Cauchari-Olaroz project, with a planned capacity of 40,000 tons of battery-grade lithium carbonate annually, expects to produce between 20,000 and 25,000 tons in its first operational year. This positions the company strongly in the market, backed by its shareholders Ganfeng Lithium, Lithium Argentina, and Jujuy Energía y Minería Sociedad del Estado (JEMSE), leading one of the most promising developments in northwestern Argentina. Along with other key mining centers such as Olaroz and Fénix, operated by Arcadium Lithium, and the new Centenario operation by French firm Eramet, Cauchari-Olaroz is among the four lithium projects currently in production in Argentina and is the third to reach this stage in the country. This milestone is particularly significant given the high level of sophistication and technological efficiency required to produce battery-grade lithium carbonate.
To achieve this key advancement, Exar built a state-of-the-art plant in the Puna region, with an investment of US$979 million, peaking at 3,300 jobs and currently employing 2,100 people, both directly and indirectly. More than 60% of the workforce resides in Jujuy, while 30% live in communities near the project.
“This first corporate bond issuance aims not only to strengthen the financing of operations but also to consolidate Exar's long-term projection in the competitive global lithium market.”
