City of Buenos Aires mulls financing options
* City considering callable bond, ECP and US dollar-linked
* Short-term funding would buy time in election year
* Double-digit yields eyed on potential int'l bond
By Davide Scigliuzzo
NEW YORK, Oct 28 (IFR) - The city of Buenos Aires is sounding out foreign investors on short-term funding as it looks to refinance upcoming maturities, according to two sources with direct knowledge of the meetings.
Options include a new five-year non-call two international bond, Euro Commercial Paper (ECP), and US dollar-linked bonds that are issued domestically in dollars but payable in pesos.
"They are a very well-run city and they don't want to be in a difficult position in 2015, so they are doing their homework," one source said.
Yet the city faces a dilemma. US dollars would allow it to build a buffer to meet international bond maturities without draining Argentina's dwindling foreign exchange reserves.
But that is much costlier - and more complicated - than tapping local peso funding. Continuación...