Local Currency Deal of the Year: Province of Buenos Aires

Local Currency Deal of the Year: Province of Buenos Aires


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Argentine officials have long set a priority of growing its local currency debt offerings.

Buenos Aires province, the largest in Argentina, issued ARS30 billion ($1.4.9 billion) in Euroclear paper in April i2018 n a deal that drew healthy investor demand.

The sale received more than ARS34 billion of orders after the trade had initially been targeted between ARS10 billion and ARS22 billion.

While local investors made up the majority of the demand, international investors snapped up ARS9 billion in one of the largest local currency orderbooks for an Argentina transaction. Proceeds from the sale were used to fund infrastructure projects and debt repayment.

The province placed the bond at 375bp over the benchmark. It priced the notes despite the fact that other global local currency deals from Latin America had collapsed months before the province’s sale because of tough market conditions and increased risk aversion among investors.

The successful sale helped the province to continue to build out its peso yield curve and helped to balance the currency structure of its debt.

Banco Galicia, Banco Provincia, Citi, HSBC and Itaú coordinated the seven-year bond sale.