Argie Province Looks to International Bond Market

Legislators in Argentina’s Neuquen province have authorized the issue of up to $330m in international or local bond markets, according to a finance ministry spokesperson. “The legislature approved the law on Wednesday and we anticipate meeting with banks next month as we analyze issuing in the dollar markets,” the spokesperson adds, without ruling out a domestic issuance. Neuquen is seeking funds to finance certain infrastructure projects and repay existing debt. The province last issued in the bond markets in April 2011, pricing a $260m 7.875% 2021 bond at an 8.000% yield. The resource-rich Patagonian sub-sovereign’s notes were backed by oil royalties in the deal managed internationally by Barclays and Citi, with Banco Macro and Puente Hermanos co-managing on the domestic side. Neuquen’s 2014 and 2017 bonds were trading at 7% and 10% in yield respectively Thursday, according to a trader.