Argentina provinces turn to domestic market
Argentina’s sub-sovereign borrowers maintained some international bond market access through last year. Those same credits are turning to the domestic markets in 2013, often for dollar funds
Argentina’s Buenos Aires
$200 million in dollar-linked domestic bonds this week,
becoming the latest sub-sovereign to tap the local markets.
More could follow this year, under an $800 million program. The
transaction followed a
similar sale from Entre Rios, which represented the
northern province’s dollar-denominated debut.
Entre Rios is working under a 900 million peso ($163
Buenos Aires last issued internationally
in 2011, when it was one of several Argentine provinces making
use of the international market even while it remained firmly
closed to the sovereign. Mendoza and the City of Buenos Aires
were also in that group. Each hit the local market in May of
this year –
Mendoza for $95 million and
BA for $216 million in an upsized, well-bid sale.
Chubut, which successfully sold a $150
million oil revenue-backed ABS in 2010, is heard to be among
the next provincial issuers bond for the domestic market.
On the corporate side, Arcor, one of the
few Argentine coprorates with recent international access,
tapped local investors last month. Edesa was the last
Argentine issuer to tap the international markets, in May of
last year. Industrias Metalurgicas Pescarmona (IMPSA) met
international investors this year, though held off on
The domestic bond market accounted for $1.26
billion-equivalent this year through August 6, according to
Dealogic data, compared to $598 million-equivalent in the same
period in 2012. LF