NEW YORK, June 2 (IFR) - The Province of Buenos Aires is planning to issue a new US-dollar denominated international bond and has set initial price thoughts of mid 10% area on the issue, according to market sources.
The new bond, which is expected to have a benchmark size, will have a final maturity of six years and amortize in two equal installments in 2020 and 2021.
The Province, rated Caa2/CCC- by Moody’s and S&P, is also offering investors the opportunity to exchange up to US$500m of its outstanding 11.75% notes due in 2015 for newly issued additional notes.
BNP Paribas and Bank of America Merrill Lynch are the bookrunners on the transaction, which is expected to launch and price later on Tuesday. Banco de la Provincia de Buenos Aires is co-manager. (Reporting by John Balassi and Davide Scigliuzzo; Editing by Paul Kilby)