The recent surge in bond sales in Argentina has extended to the public sector, as Buenos Aires City re-enters global markets after nearly ten years. This activity has propelled foreign debt issuance to nearly US$3.5 billion over the past three weeks, surpassing the total volume of the preceding five months combined. On November 18, Buenos Aires City issued US$600 million in eight-year dollar bonds, marking the first instance of the City selling international debt since 2016, as per data. The resurgence comes in the wake of a series of corporate sales: Six companies have accessed international debt markets with transactions exceeding US$100 million after Javier Milei’s unexpectedly robust performance in the October 26 midterm elections, which mitigated a budding currency crisis and enhanced optimism regarding the economic outlook. The sales suggest that Argentina is at last participating in the wave of emerging-market debt issuance that commenced earlier this year, as investors have started reallocating funds away from the US in response to policy uncertainty. In 2025, sovereigns and corporations from developing nations have issued over US$700 billion in hard-currency notes, marking the most active year since 2021, as per data.
“Argentine companies were poised to capitalize on the emerging market opportunity earlier this year, yet the volatility preceding the midterms hindered their ability to do so,” stated Juan Barros Moss. “Still, issuers had conducted their due diligence and were positioned to act promptly thereafter.” The favorable trajectory for Argentine borrowers is expected to persist. The bond wave commenced shortly after the vote, with YPF SA and Tecpetrol SA issuing US$500 million and US$750 million in notes, respectively. Pampa Energía SA executed a bond sale amounting to US$450 million, followed by Edenor SA with an issuance of US$201 million, and Pluspetrol SA with a bond deal also totaling US$450 million. The most recent issuance was a US$500-million bond from Transportadora de Gas del Sur SA, which was priced last week. The yields on the newly issued notes are positioned between 7.625 percent and 10.375 percent, with maturities extending from 2030 to 2037. Sales of dollar-denominated debt have surpassed the US$2.7 billion raised by Argentine companies and provinces from late May until the election, according to data compiled by Bloomberg.
Power producer Genneia is poised to enter the market, as indicated by a source, anticipating the issuance of an eight-year dollar bond this week. The company is considering an initial public offering in early 2026 and aims to raise up to US$500 million, according to a source. The company refrained from providing any comments on Wednesday. The pressing need among Argentine issuers arises from a significant decline in country risk following the election. The spread over US Treasuries has contracted to approximately 600 basis points, a decrease from over 1,400 points observed in mid-September, as per data. The government anticipates that the recent trade agreement with the United States, coupled with a reform package set to be presented to Congress, will contribute to a further reduction in country risk, thereby facilitating additional debt issuances – possibly even from the sovereign entity.
The surge in bond activity is facilitating the influx of essential capital into the financially constrained nation. The peso has appreciated in the weeks following the vote, now trading above 1,400 per dollar for the first time since October, reflecting an enhancement in market confidence. “After several major corporate deals, the provincial segment kicked off with a successful issuance from Buenos Aires,” stated economist Gustavo Ber. “There is evident demand from investors overseas. This context creates the groundwork for a possible sovereign issuance.”