Buenos Aires province on verge of a comeback dollar bond
By Davide Scigliuzzo
NEW YORK, May 20 (IFR) - If local newspaper reports prove to be true, Argentina's Province of Buenos Aires is all set to launch a new bond deal worth at least US$500m in the next few days.
If it happens, the deal would be the first international bond sale from the province since 2011 and would mark a revival of a similar transaction rumored to be in the works in May of last year.
At the time, however, concerns over Argentina's looming default meant investors were demanding a yield that was well above the province's target.
But despite all this background noise, so far the reaction from market participants about a potential deal from the province has been positive.
"There is appetite for yield and for paper that is not involved in the legal saga," said Jorge Piedrahita, CEO of brokerage Torino Capital in New York.
Investors seem keen to increase their exposure to Argentina and have shown strong appetite for bonds issued by the local governments, which are isolated from the sovereign's legal dispute with holdout creditors.
Earlier this year, the City of Buenos Aires amassed around US$2bn in orders when it sold a new US$500m six-year amortizing bond to international investors, which priced at a yield of 8.95%.
According to the local reports, the province is targeting a yield of below 10% for the new sale. Continuación...