Chubut Prices Hydrocarbon-Backed Note

Argentina’s Chubut province has sold $220m in 2019 dollar-linked bonds backed by oil revenues, according to people familiar with the transaction. The bond priced at par with a 4.0% coupon, and saw demand of $318m. Chubut’s notes are guaranteed by taxes the province gets from oil exports, and are raising proceeds for infrastructure funding, mainly community centers and hospitals. Puente was lead bookrunner and BNP Paribas and Banco del Chubut as co-bookrunners on the deal, rated A on a national scale. The province last issued dollar-linked bonds in 2010, and has previously issued debt locally and abroad with hydrocarbon guarantees. The transaction follows a $198m 2018 deal for Argentina’s Neuquen province last week, at 3.9%, led by Banco Galicia and Macro.