RPT-Markets braced for Argentine provinces borrowing spree
(Repeats to wider audience)
By Paul Kilby
NEW YORK, April 29 (IFR) - Several billion dollars worth of Argentina bond supply is expected to hit the market in coming weeks as the country's provincial borrowers prepare to take advantage of the positive glow left over by the sovereign's blowout US$16.5bn multi-tranche transaction earlier this month.
The Argentine Province of Neuquen will start fixed-income investor meetings ahead of a possible US dollar 144A/RegS transaction through Deutsche Bank and JP Morgan.
The borrower will visit accounts in Boston on Monday, in New York on Tuesday and in London on Wednesday. The offering of bonds, which will be backed by gas royalties, is being done in conjunction with an exchange for its outstanding 2021s.
Argentina's Province of Chubut is also 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.
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.
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 said last week. (Reporting by Paul Kilby)
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