Market Overview

GE and YPF Secure Financing for Two Fastpower Projects in Argentina


General Electric (NYSE:GE), through its energy investing unit GE Energy
Financial Services, and YPF Energía Eléctrica, a wholly owned subsidiary
of YPF S.A. (NYSE:YPF), have secured an approximate $220 million project
financing for two jointly owned thermal power projects in Argentina, the
267-MW Tucumán and 107-MW Loma Campana II projects. Citi, Credit Suisse
and Export Development Canada (EDC) jointly led the financing, which
represent the first power plant project financing in Argentina in almost
20 years.

Tucumán and Loma Campana II are both more than halfway through
construction. The Tucumán project, located in Tucumán province, will be
powered by a GE 9F.04 gas turbine and will begin commercial operations
in February 2018. The Loma Compana II project, located in Neuquén
province, will be powered by a GE LMS100 gas turbine and will begin
commercial operations in December 2017. GE is the EPC contractor for
both projects.

Once operational, each project will benefit from a 10-year power
purchase agreement (PPA) with the state-run wholesale electricity market
administrator Compañía Administradora del Mercado Mayorista Eléctrico SA
(CAMMESA). The PPAs were awarded in 2016 as part of the Government of
Argentina's ‘Fast Power' tender. The tender was the first of a series
aimed at displacing expensive and inefficient generating capacity, and
quickly increasing the country's electricity reserve margin.

In response to Argentina's energy environment, President Mauricio Macri
has enacted several reforms and implemented new energy policies aimed at
increasing electricity supply in the short term, and changing the
country's energy mix in the long term. 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

GE Energy Financial Services' Global Capital Advisory team, which
sources financing from third parties including export credit agencies,
development finance institutions and other equity providers and
commercial banks, led the debt raise for Tucumán and Loma Campana on
behalf of the sponsors.

"GE's technology, global reach and capital expertise enabled a
successful outcome for Argentina's initial fast power tender and for an
important GE customer, YPF," said Bob Psaradellis, managing director,
Global Capital Advisory, GE Energy Financial Services.

Daniel Castagnola, managing director, Latin America, GE Energy Financial
Services, added, "There is a strong pipeline of projects in Argentina
and Latin America broadly and we look forward to partnering with more
international project finance lenders in the region."

As part of the Government of Argentina's ‘Fast Power' tender in 2016, GE
provided equipment to seven projects totaling 896 megawatts comprising
9F, LMS100 and TM2500 gas turbines.

About YPF

YPF is the leading energy company of Argentina, producing 43% of the
total oil and gas in the country and supplying 56% of the fuel markets
through a network of 1500 gas stations and other assets. YPF is leader
in the production of unconventional resources. It is an integrated
energy company that generates a large offering consisting of natural
gas, electricity, fuels, petrochemicals, lubricants and products for
agriculture, among others.

About GE Energy Financial Services

A strategic GE Capital business, GE Energy Financial Services is a
global energy investor that provides financial solutions that help meet
the world's energy needs. Drawing on its technical know-how, financial
strength and strong risk management, GE Energy Financial Services
invests in long-lived and capital intensive projects and companies. The
firm has 35+ years of experience managing energy assets through multiple
economic cycles, and a global portfolio that spans conventional and
renewable power, and oil and gas infrastructure projects. More
Twitter @GEEnergyFinServ.

About GE

GE (NYSE:GE) is the world's Digital Industrial Company, transforming
industry with software-defined machines and solutions that are
connected, responsive and predictive. GE is organized around a global
exchange of knowledge, the "GE Store," through which each business
shares and accesses the same technology, markets, structure and
intellect. Each invention further fuels innovation and application
across our industrial sectors. With people, services, technology and
scale, GE delivers better outcomes for customers by speaking the
language of industry.

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