The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Province of Buenos Aires hits a sweet spot

Analysts expect the Province of Buenos Aires to achieve a 90% participation rate for its $3 billion debt restructuring, when it closes on December 16. If it succeeds, it will be a stunning result, given that those investors who accept the restructuring own debt worth about 40 cents on the original dollar.

Typically, a deal with a 60% haircut would be considered derisory and insulting. But the rules of the game have changed following the sovereign’s restructuring earlier this year. The province’s terms are much more favourable than those offered by the sovereign and are much more favourable than Argentina’s holdouts can expect to receive if and when the sovereign’s exchange offer is reopened.

The Province of Buenos Aires has 16 bonds outstanding, which have been in default for almost four years. Many were sold to Italian retail investors and some traded as low as 18 cents on the dollar. Today, those bonds are worth about 50 cents on the dollar,

One old adversary from the sovereign days, however, has ultimately refused to bend. The province bent over backwards to consult with Nicola Stock in Italy, whose Task Force Argentina organization represents 32,000 Italian bondholders holding 22% of the province’s debt.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree