The province will seek to test the appetite of international investors after one last broadcast in 2017.
The Province of Córdoba He will look for US $ 800 million on Thursday with his first Bonus in dollars In 8 years, testing the appetite of international investors, after one last issuance of these characteristics made in 2017.
As reported on Wednesday by IFR, the financial service of LSE, the Mediterranean province is preparing to test the market -what was the failed attempt at the Autonomous City of Buenos Aires last year-in order to finance a tender of approximately US $ 516 million in bonds in circulation with expiration in 2027, after announcing an offer of repurchase of the “Step Up 2027” for a price of US $ 99.5.
The repurchase offer began last Monday and will end next Friday, according to a statement from the Cordoba government that, at the beginning of the month, had paid more than US $ 18 million of the bond coupon (6.99%rate). On June 30, the province will announce the total amount of offers received.
The new 7 -year title will be allocated to qualified institutional investors and will have a fixed interest rate that will be determined at the time of the issuance, and a capital amortization divided into three parts, payable since 2030, in the last three years of the bonus.
In that line, although the subscription notice was not yet published, Córdoba would be returning to the bond market as investors seem to be cautiously optimistic for the future of the economy, with a debt title that, according to PPI information, would have A coupon that would approach 9.5%.
While it is true that the government of Javier Milei It still faces several challenges at the macroeconomic level, the hopes of an economic recovery promoted a wave of corporate bond emissions during the last year. However, Córdoba will be the first province of the country to issue dollar debt in cross -border markets since 2017.
“The broadcast will serve as proof of appetite for the Argentine subsoberan risk”
“The issuance will serve as a key proof of market appetite for the Argentine subsoberan risk amid the persistent macroeconomic and legal uncertainty,” said Sebastián Maril, director of Fixed Income of Latam Advisors.
In turn, Córdoba was among several Argentine provinces that sold bonds to international investors in foreign currency (dollars and euros) and local currency between 2015 and 2018, before the country incurred in an default of its debt in 2020. Therefore, many of these provinces, including Córdoba, submitted debt restructuring, reaching an agreement with its creditors in 2021.
Source: Ambito
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