Buenos Aires province eyeing seven-year bond
By Davide Scigliuzzo
BUENOS AIRES, March 8 (IFR) - The province of Buenos Aires is poised to issue a new seven-year bond this week with a yield between 9% and 9.5%, jumping ahead of a jumbo deal awaited from the Argentine sovereign.
The local government, which wraps up investor meetings on Tuesday, is expected to raise between US$750m and US$1bn, according to market participants.
With Argentina looking to hit the market with a more than $10bn bond by mid-April in order to pay a settlement with holdout creditors, officials from the province are moving fast.
"They want to come as soon as possible," said one investor who met with the provincial government's secretary of finance, Guido Sandleris, during the roadshow.
The investor told IFR that local officials see an opportunity to have the market to themselves before the sovereign and other Argentine issuers rush to sell bonds.
A second investor who met with the delegation from the province said officials are targeting a yield of between 9% and 9.5% for the seven-year tenor.
The province wraps up meetings in Los Angeles and Boston on Tuesday, after visiting investors in London and New York this week and last.
Citigroup, HSBC and JP Morgan are the lead managers on the bond offering, which is expected to be rated Caa2/B-/B-. (Reporting by Davide Scigliuzzo; Editing by Paul Kilby)
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