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Buenos Aires City Returns to Global Markets With $600 Million Bond at 7.8%

The pricing establishes a reference many provinces sought to time upcoming sales.

Overview

  • The City of Buenos Aires sold $600 million of debt at a 7.8% yield, drawing nearly triple the demand with 82% of orders from international investors and a new average life of seven years.
  • BofA Securities, Deutsche Bank Securities, JPMorgan and Santander led the placement conducted under international law as the city refinances dollar liabilities.
  • A drop in Argentina’s country risk and active outreach by Interior Minister Diego Santilli have reopened a window for provincial financing, with federal guarantees remaining an option.
  • Santa Fe and Chubut are preparing international offerings after this pricing, with Santa Fe authorized for up to $1 billion for infrastructure and Chubut considering a $500 million bond backed by oil royalties.
  • Córdoba set the midyear precedent with a $725 million deal at 9.75%, the national government recently offered a counter‑guarantee for Mendoza’s $75 million loan, and La Rioja remains the only province in default on 2028 bonds.