Argentina’s standing as a global agricultural powerhouse is well established, but few provinces embody that strength as fully as Córdoba. Home to the country’s second-largest population and a diversified production base spanning grains, farm machinery and biofuels, the province sits at the heart of Argentina’s export economy. In July 2025, Córdoba translated that economic relevance into capital markets credibility, returning to the international bond market for the first time in more than seven years with a $725 million offering of 9.75% senior unsecured notes due 2032.
The transaction, which wins the award for Subnational Deal of the Year, marked more than a routine refinancing. It was the first new-money issuance by an Argentine public-sector borrower since 2017 and reopened international market access for sub-sovereigns after years of macro volatility and legal uncertainty. By pairing a sizeable new issue with a concurrent tender offer, Córdoba extended its maturity profile, reduced near-term refinancing risk and established a replicable template for peers seeking to reengage global investors.
“Reopening access to the international market after more than seven years, and doing it in Argentina’s challenging environment, positioned Córdoba as a credible sub-sovereign issuer with fiscal discipline, clear rules and sound institutional framework,” says Guillermo Acosta, the province’s finance and planning minister.
Córdoba placed the notes in a 144A/Reg S format, setting a new seven-year benchmark for Argentine subnationals. Demand exceeded expectations, with the order book peaking at roughly $1.2 billion, allowing the province to clear the market at a scale that underscored institutional appetite for well-structured provincial risk. The 9.75% coupon reflected Argentina’s elevated risk premium but was widely viewed as a successful execution given the tenor, size and backdrop.
Acosta emphasizes that the transaction was the result of deliberate preparation rather than opportunism. “We had a great deal of support from the central government, and the result reflects this. It was an intense process that included months of preparation, dialogue with the ministry and with investors. This direct contact was key to explaining our fiscal situation, financing strategy and management capacity,” he says.
That coordination extended to the deal’s liability-management component. Alongside the new issue, Córdoba launched an offer to purchase any and all of its US-dollar step-up notes due 2027. Using proceeds from the 2032 bonds, the province repurchased more than $360 million of the 2027 notes at a price of $995 per $1,000 of principal. The near-par take-up demonstrated constructive engagement from existing bondholders and enabled investors to rotate exposure from a short-dated maturity into a longer-dated instrument.
The tender materially smoothed the province’s debt amortization profile, cutting refinancing risk and improving cash-flow predictability. Proceeds were first directed toward retiring the 2027 notes, with the balance allocated to infrastructure investment or repayment of other liabilities, reinforcing a message of fiscal discipline.
The financing supports Córdoba’s ongoing infrastructure agenda, spanning roads, energy and water projects that underpin export capacity and industrial value chains. The province has complemented market funding with loans from multilateral and bilateral sources, including financing backed by Kuwait and Saudi Arabia for water infrastructure.
“We are investing in key infrastructure, roads, energy and water, and working on financing mechanisms to deepen private investment, create jobs and boost our export capacity. Fiscal stability and orderly finances are central tools for us to continue to grow,” Acosta says.
From a market perspective, the transaction stood out for its technical execution under complex cross-border and Argentine legal constraints. Standard international documentation, a conventional trustee structure and clear covenant framing broadened the investor base and aligned the deal with global norms. Unlike other recent Argentine subnational attempts, Córdoba successfully closed both the issuance and the tender.
By re-establishing market access at scale and tenor, the province reopened a channel for Argentina’s public sector at a time when sovereign issuance remained constrained. “We are always watching market conditions and looking for opportunities,” Acosta says. “We have a flexible strategy and if there is a window for us to go to the market, we will – as long as the cost and timing are consistent with our long-term plans.”
Province of Córdoba$725 million Notes Offering
Global Coordinators: J.P. Morgan; Santander
Counsel to Issuer: A&O Sherman; Tavarone, Rovelli, Salim & Miani
Counsel to Global Coordinators: Milbank; Salaverri Burgio Wetzler Malbrán