Argentina’s Richest Man Plans $1.5 Billion Airport Bond Deal

  • Aeropuertos Argentina 2000 hired Oppenheimer & Co for deal
  • Offering may have to be scaled back due to regulatory concerns

Eduardo Eurnekian’s Aeropuertos Argentina 2000 is planning to sell as much as $1.5 billion of bonds in the international market, Argentina’s richest man said in an interview.

Aeropuertos Argentina, a unit of Eurnekian’s Corporacion America, hired Oppenheimer & Co to arrange the offering, he said in New York. The company expects to sell the bonds in November following the U.S. presidential election.

Argentina’s airport regulator is still reviewing the company’s investment plan and the size of the sale can’t be finalized until it makes its ruling, Eurnekian said. “However, we will at least sell $500 million as our plans are solid,” he said.

The bonds are likely to be offered with a maturity of 10 years and yield of about 7 percent, he said. Proceeds from the sale will be used for working capital.

Representatives for Oppenheimer didn’t immediately respond to requests for comment.

Borrowing costs at billionaire Eurnekian’s airport unit in Argentina fell in August to a record low of 5.94 percent for its bonds due 2020. The 10.75 percent bonds have returned 11.3 percent this year, according to data compiled by Bloomberg. The $178.5 million outstanding of the originally $300 million sold by the company are trading at 109.06 cents on the dollar.

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