Metrogas is considering the sale of sustainable bonds

Metrogas, Argentina’s largest natural gas distribution company, said late Wednesday that shareholders have approved a proposal to sell sustainable notes from its $600 million bond program.

The bonds will be green, social or sustainable, the company said in a securities filing.

Shareholder approval is the first step to sell the notes in the local market, it added.

Metrogas distributes gas to more than 2.4 million customers in and around Buenos Aires. The company is 70% owned by YPF, the country’s state energy company, which has said it plans to sell the company as soon as conditions improve to increase the sales price. The proposed divestment is part of YPF’s strategy to focus on its core businesses, including oil and gas production at the Vaca Muerta shale deposit in Patagonia.