NEW YORK, April 28 (IFR) - Argentina’s Province of Chubut is preparing to sell an up to US$83m New York law bond due in 2023, according to Moody‘s, which assigned a B3 rating to the issue on Thursday.
The fixed-rate bond, backed by contributions from Pan American Energy, will have a grace period of seven quarters before amortizing in 20 installments, the rating agency said.
Chubut joins a string of Argentine provinces looking to access the international bond markets following the sovereign’s blowout US$16.5bn multi-tranche offering last week.
The Province of Neuquen has mandated Deutsche Bank and JP Morgan to meet investors next week in an effort to market a US dollar bond sale and an exchange offer for its 2021s.
The provinces of Mendoza and Cordoba, as well as the City of Buenos Aires, are also expected to issue debt in coming weeks, government officials told journalists on Wednesday. (Reporting by Paul Kilby; Editing by Marc Carnegie)