|
Province of Buenos Aires fact box
Governor: Felipe Solá
Finance undersecretary: Hernan Lorenzino
Capital: La Plata
Population: 13,827,203 (2001)
Debt strategy: Vanilla bond deal for $475 million with a 12-year maturity. First international deal since 2001 financial crisis. PBA restructured on $3 billion of defaulted debt last December |
The Province of Buenos Aires has returned to the international capital markets. The question is: will the province’s bond deal pave the way for the sovereign’s return, or is it just out of necessity as the federal government becomes more tight-fisted in its distribution of funds?
The PBA issued $475million of 12-year government bonds on October 25 at a yield of 9.75 %, which immediately tightened to 9.57% in the secondary market. The notes sold with a coupon of 9.375% and were priced at 97.417 at a spread of 492 basis points over US treasuries. It is expected that...
