Despite talk that investors may have had their share of Argentine risk, sources have told LatinFinance that two provinces, Cordoba and Tierra del Fuego, may turn to the international bond market this year.
Cordoba, which sold $725m in 7.125% five-year bonds last year, is no stranger to the investor community and bankers are confident the province can get a fair deal over the finish line.
Tierra del Fuego, Argentina’s smallest province, is faced with a tougher task however, with investors still reluctant to take on the abundance of Argentine debt.
“At this point, I do not think [the provinces] are considering anything at least for the short-term as investors do not seem keen on adding more provincial debt,” one banker said.
La Rioja, which is similar in size to Tierra del Fuego, printed $200m in 6.5-year bonds last week and leads failed to gain enough traction to bring in yields from initial price talk of 10%.
Dubbed “juicy” by some investors, La Rioja’s notes have enjoyed a good start in the secondary market. They tightened to 9.75% last Friday, with the reoffer price up a point from issue day.
“[Tierra del Fuego] will have to pay a hefty premium,” the banker added.
Tierra del Fuego mulled a $150m bond sale last year, but postponed plans in the wake of the US presidential elections in November.