Chubut Delays ABS to Mid-July

Argentina’s Chubut province has delayed until July 12 a $150m 2020 bond issue, according to a banker on it. He adds that the bookbuilding process is still under way and that local and international investors are showing strong interest. The 7.75% coupon bond carries yield talk in a 9.00%-9.50% range, implying a large discount. Terms on the deal have not changed, says the banker. The oil and gas royalty securitization is set to be allocated $50m to domestic markets and $100m internationally, the provincial government has said. The notes will be backed primarily by hydrocarbon royalties to be paid by Pan American Energy, which has been awarded the production concession for certain areas in the province. The deal is rated Ba3 globally and Aa1 domestically. US-based BCP Securities is managing the international placement, with Banco de Valores and Banco de Chubut on the domestic portion.