NEW YORK, July 6 (IFR) - Banco de Galicia y Buenos Aires, one of the largest private banks in Argentina, will start investor meetings next week ahead of a potential subordinated bond sale.
The lender is looking to raise up to US$300m through a 10-year Tier 2 bond, according to rating agency Moody‘s, which has assigned a Caa1 rating to the proposed issue.
The deal would be the first Tier 2 issue out of Argentina to comply with tighter Basel III standards, which require subordinated bondholders to take a loss if the bank reaches the so-called point of non-viability.
Banco Galicia has hired Deutsche Bank and JP Morgan as joint bookrunners and Standard Chartered as lead manager to arrange the meetings, which will take place in London and the US West Coast on July 11, New York and Boston on July 12 and wrap up in New York on July 13.
The bond sale would be Banco Galicia’s first in the international market since 2011, when it raised US$300m through a seven-year non-call four note that priced at a final yield of 8.75%, according to IFR data. (Reporting by Davide Scigliuzzo; editing by Shankar Ramakrishnan)