Buenos Aires City and Santa Fe Province are considering international bond sales in the limited timeframe between the provincial election in Buenos Aires Province on Sunday and the midterm elections in October. Buenos Aires is contemplating the sale of up to US$600 million in international markets, which would include approximately US$400 million in new debt issuance, while the remainder would be part of an exchange offer aimed at retail investors to extend maturities, according to sources.
The proceeds are primarily earmarked for refinancing, as officials brace for a payment of US$300 million that is set to come due in June 2026. Officials are of the opinion that a successful outcome for President Javier Milei’s administration in the upcoming provincial elections could establish a brief opportunity to engage with markets before the midterm elections. While it is clear that the leader of La Libertad Avanza’s party is unlikely to secure victory in the Buenos Aires Province vote, a narrow loss could nonetheless convey an encouraging message in anticipation of the national legislative elections in October, where approximately half of the congressional seats are contested. Buenos Aires City remains in the monitoring phase, collaborating with banks such as JPMorgan Chase & Co, Banco Santander SA, Bank of America Corp, and Deutsche Bank AG. City officials, having journeyed to New York last December to gauge interest, are now set to execute a virtual roadshow. Meanwhile, yields are on the rise.
The City is considering the issuance of a bond with a maturity period ranging from five to seven years, according to sources. Santa Fe, in parallel, is organizing a distinct sale of as much as US$800 million within the same post-vote timeframe, according to two sources. The province seeks to secure US$500 million, with the remainder allocated for a tender offer. The plan is currently on hold, awaiting approval from the federal government, a request that was submitted two months prior. Santander and JPMorgan were appointed as bookrunners. The province’s press office stated in a written response to inquiries, “Talks with the national government continue on good terms and they are still waiting for an issuance week to be defined.” The federal government, JPMorgan, and Bank of America have yet to provide a response to requests for comment. Deutsche Bank and Santander refrained from providing any commentary.
Santa Fe is confronted with substantial repayments on its 2027 bond, which entails three annual installments commencing in November, each amounting to US$83 million. Officials consider market access in the upcoming weeks to be essential for alleviating that burden. The province intends to issue a bond with a maturity of five years, according to sources. Currently, both the city and the province are monitoring election outcomes attentively, with ultimate decisions dependent on investor sentiment in the forthcoming weeks.