Cordoba Eyes International Bond Issue

The Argentine province of Cordoba is planning an international bond issue of $100m-$150m, likely in the next three months, Alejandro Henke, executive director of the province-owned Banco de Cordoba tells LatinFinance. The bank is currently negotiating with a group of investment banks to underwrite a larger debt program encompassing the offering. A roadshow is planned for North America and Europe. Despite Argentina’s tough times in the international credit markets, the province is optimistic on the deal. “The banks have told us they can get us rates comparable to what Buenos Aires Province had for its sale,” Henke says. He adds that that province and several corporates over the past year have already opened the doors for dollar offerings. Buenos Aires province issued $475m in 9.375% 2018 notes in October 2006. Cordoba notes proceeds will go towards infrastructure projects including hospitals and roads essential to exporting products from the province’s farms. They will also refinance debt in pesos and inflation-linked instruments.