While the borrower is yet to make an official announcement, BNP Paribas and Citigroup are thought to have been mandated on the deal after arranging meetings with investors in Europe and the US over the past month.

Province of Buenos Aires readies US$500m bond issue

27 May 2014 | By Davide Scigliuzzo 

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The Province of Buenos Aires appears to be moving closer to tapping the international bond markets after Moody’s and S&P assigned ratings for an up to US$500m senior unsecured bond from the Argentine issuer.

The new notes, which will be subject to New York law, will have a maturity of up to 10 years and amortise in three annual instalment before maturity, according to Moody’s.

The province plans to use proceeds from the issue to finance infrastructure and social projects as well as to plug fiscal imbalances, said Moody’s.

While the borrower is yet to make an official announcement, BNP Paribas and Citigroup are thought to have been mandated on the deal after arranging meetings with investors in Europe and the US over the past month.

The Province has US$1bn plus in debt maturities falling due next year. Moody’s and S&P have respectively assigned a Caa2 and CCC+ ratings to the upcoming issue.

http://www.ifre.com/province-of-buenos-aires-readies-us$500m-bond-issue/21147913.article