UPDATE 1-Buenos Aires province eyeing seven-year bond

martes 8 de marzo de 2016 17:25 GYT

(Adds amortizing structure, analyst quote)

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 is expected to raise between US$750m and US$1bn with the bond, which could be announced as soon as Wednesday, 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.

He said the province might opt for an amortizing structure, in which case the notes would have an average life of a little less than seven years.

A second investor who met with the delegation said officials are targeting a yield of between 9% and 9.5% for the seven-year tenor.   Continuación...