JPMorgan, HSBC, BAML Said to Manage Buenos Aires Bond SaleCamila Russo
JPMorgan Chase & Co., HSBC Holdings Plc and Bank of America Merrill Lynch were hired by the city of Buenos Aires to sell as much as $890 million of global bonds, according to two people with direct knowledge of the plans.
Argentina’s capital city said it received approval from local lawmakers to sell debt with a minimum maturity of five years. The funds will be used to pay down $475 million of debt coming due in 2015 and extend maturities, said the people, who asked not to be identified because they’re not authorized to speak publicly about the matter.
The banks handling the sale are waiting for the right moment to sell the debt, the people said. There’s no date scheduled for meetings to promote the sale, according to one of the people, who is an official at the city’s Finance Ministry.
Veronica Espinosa, a spokeswoman for JPMorgan, declined to comment. BAML officials couldn’t be reached. HSBC press official Robert Sherman didn’t respond to an e-mail seeking comment.
This would be the city of Buenos Aires’ first international bond sale since 2012.
Argentine companies and provinces are waiting for lower interest rates to sell as much as $2 billion of bonds later this year, according to Puente Sociedad de Bolsa SA.
While average yields hit three-year lows last week, the government faces a July 30 deadline to settle with holdout creditors or fall into default on restructured debt. U.S. District Court judge blocked a $539 million payment due June 30, saying it violated his orders to pay defaulted bondholders at the same time.
The city’s 12.5 percent notes due next year fell 0.38 cent to 101.53 cents on the dollar at 12:51 p.m. in Buenos Aires, according to data compiled by Bloomberg. The yield rose 55 basis points, or 0.55 percentage point, to 10.14 percent.