Neuquen Plans Oil-Backed Bond

Argentina’s Neuquen province plans to sell up to $260m in bonds backed by oil royalties, according to an official at the province’s finance ministry. The B rated province is considering a maturity of 8-10 years, and will begin marketing the bonds in late February, with an eye on a March sale. Barclays and Citi have been hired to manage the sale, alongside locals Banco Macro and Puente Hermanos. The issuer circulated an RFP last year and is expected to use a structure similar to the ABS issued last year by the Chubut province. Chubut raised $150m in a 7.75% of 2020 in July 2010 through securitization of oil and gas royalties. Neuquen’s last bond was a $125m 7-year oil royalty ABS in 2007 with an 8.656% coupon, according to Dealogic.