September 1, 2013
When Aeropuertos Argentina examined its options for a debt market debut in 2010, international interest in bonds out of the country was limited. The sovereign was negotiating Paris Club debt and attempting to swap bonds it had defaulted on nine years earlier. Another corporate borrower, food products-maker Arcor, had issued debt in November 2010. But it benefited from having extensive international operations.
So AA2000 also turned to its comparative advantage: it offered a bond backed by cash flows from airport usage fees, which would be collected offshore.
The fact a high proportion of those revenues were in dollars was among the selling points to investors, says Raúl Francos, CFO of AA
Secured financing has helped Latin companies access capital in the toughest of climates when markets otherwise prevented it. It is also proving useful when times are smoother. By Katie Llanos-Small