Pampa Energía, through its subsidiary Central Térmica Loma de la Lata, successfully closed a bond issuance for an amount of 178 million dollars destined to finance the capacity expansion of Central Térmica Loma de la Lata, located in the province of Neuquén.

The maturity date of the bond is the year 2015, and it bears an interest rate of 11.25%. It shall be payable in six-month payments with a five-year grace period for the capital amortization. The purchase price was 93.3402%, which implies a yield to maturity of 12.95%.

Upon revealing the information, Marcelo Mindlin, president of the Company, stated: "This operation proves, once again, the market confidence on Pampa Energía, and that when serious and attractive projects are offered, the necessary financing is obtained. Also, we want to emphasize the role of Government agencies such as the CNV (Securities and Exchange Commission) and the BCBA (Bolsa de Comercio de Buenos Aires) approving the proposals with both efficiency and professionalism."

Regarding the successful result of the operation, Mindlin pointed out: "I believe we have to emphasize that this is the first operation since the creation of the Pension Fund system, in which 100% of a productive investment in the country is financed by means of long-term savings from Argentine people. I believe this allows us to be optimistic as to the results that may be achieved between Argentine businessmen and pension funds in the future. We are very thankful for the effort made so as to understand the project, add constructive comments and finally provide support to the project."

The capacity expansion project consists in the closing of Central Térmica Loma de la Lata into a combined cycle, by means of the provision and installation of a steam turbine and a recovery boiler which will enable it to increase by 180 MW its current capacity of 370 MW.

This project, in addition to the inauguration of the new turbine of Central Güemes located in Salta and the building of central Ingentis in Chubut, comprise the investment plan of more than 1,400 million pesos that Pampa Energía has in place to increase, in two years time, its electricity installed capacity by 500 MW, within the Energía Plus Plan.

ABN AMRO Bank N.V., Argentine Branch and Standard Bank Argentina S.A. acted as Arrangers, Placement Agents in Argentina and Bookrunners of the issuance.