- Cordoba province plans to issue up to $1 billion next month
- Salta seeking legislative approval for $350 million issuance
Argentine provinces plan to sell as much as $1.35 billion in bonds in June, capitalizing on the end of the legal battle with creditors that had pushed South America’s second-largest economy into 15 years of financial isolation.
Cordoba will begin meeting with investors May 29 to sell up to $1 billion of bonds in early June, the province’s Finance Minister Osvaldo Giordano said in an interview at a conference in Buenos Aires. Salta province is seeking the provincial legislature’s approval to issue $350 million next month, Governor Juan Manuel Urtubey said in an interview.
Overseas borrowing costs for Argentina’s government, companies and provinces are tumbling as the nation attracts investors in the wake of President Mauricio Macri’s election in November. Macri settled with holdout creditors within four months of taking office to pull the country out of default, and has moved to loosen currency controls and end costly subsidies as part of efforts to lessen the state’s role in the economy.
Within a week of the settlement, the government issued a record $16.5 billion of bonds, using some of the proceeds to pay the litigators led by Paul Singer’s Elliott Management. Shortly after, Mendoza province sold $500 million of notes due in 2024 at a yield of 8.6 percent. Neuquen, home to the Vaca Muerta shale oil and gas formation, on May 5 sold $235 million of 12-year notes backed by oil and gas royalties at 8.625 percent. The city of Buenos Aires is meeting investors in New York and London as it prepares to issue.
JPMorgan Chase & Co. and Morgan Stanley are organizing Cordoba’s bond sale while Salta is working with Banco Macro locally as it finalizes which international banks it will hire.