Buenos Aires hopes to best Argentina on bond price: sources

lunes 9 de febrero de 2015 12:45 GYT
 

By Davide Scigliuzzo

NEW YORK, Feb 9 (IFR) - Buenos Aires is aiming to get better pricing than the sovereign when it comes to market with a new bond in the days ahead, hoping to show it is a better credit than Argentina itself.

Two investors who met with city officials said Buenos Aires wants to price inside the sovereign's curve on a planned five-year non-call two bond to refinance debt maturing in April.

The city, rated Caa1/CCC-/CCC, is looking to raise US$500m plus to refinance an April maturity.

"The city has historically traded 200bp inside the sovereign because it is in much stronger financial health," one of the investors told IFR.

"If you assume a return to normal and a resolution with (Argentina's) holdout (creditors), then the city should probably return to that historical spread."

Argentina defaulted on some US$30bn of foreign law bonds last year, and has been locked in a bitter legal dispute with its disgruntled creditors.

But not everyone is convinced the city will be able to get a better result from investors who have been repeatedly burned in their Argentina dealings.

"We are very cautious about (the city's) liquidity constraints in these tough times," said the second investor.   Continuación...