Argentine bond spree tops US$3.4 billion with Buenos Aires City sale

The bond sale spree in Argentina has spread into the public sector, with Buenos Aires City returning to global markets after almost a decade and bringing foreign debt issuance to almost US$3.5 billion in the past three weeks, topping the volume of the previous five months combined.

Buenos Aires City issued US$600 million in eight-year dollar bonds on November 18 – the first time the City sold international debt since 2016, according to data compiled by Bloomberg. The comeback follows a swathe of corporate sales: Six companies have tapped international debt markets with deals over US$100 million following Javier Milei’s surprisingly strong showing on the October 26 midterm vote, which halted a nascent currency crisis and boosted confidence in the economic outlook. 

The sales indicate that Argentina is finally joining the surge in emerging-market debt issuance that started earlier this year as investors began to shift money out of the US amid policy instability. Developing nation sovereigns and companies have sold more than US$700 billion in hard-currency notes in 2025, the busiest year since 2021, according to data compiled by Bloomberg.

“Argentine companies were ready to seize the EM window earlier this year, but volatility ahead of the midterms kept them from taking advantage,” said Juan Barros Moss, director of Advisory and Capital Markets at Balanz. “Still, issuers had done their homework and were able to move right after. The positive momentum for Argentine borrowers should continue.”

The bond wave began just days after the vote, when YPF SA and Tecpetrol SA sold US$500 million and US$750 million in notes, respectively. That was followed by Pampa Energía SA’s US$450-million bond sale, Edenor SA’s US$201-million issuance and Pluspetrol SA’s US$450-million bond deal. The latest was Transportadora de Gas del Sur SA’s US$500-million bond, which priced last week. Yields on the new notes have come in between 7.625 percent and 10.375 percent, with maturities ranging from 2030 to 2037. 

Dollar-debt sales have now outpaced the US$2.7 billion raised by Argentine firms and provinces from late May through the election, data compiled by Bloomberg show. 

Power producer Genneia is set to join the frenzy, according to a person familiar with the deal, expecting to place an eight-year dollar bond this week. The company, which is also eying an initial public offering in early 2026, is looking to raise as much as US$500 million, the person said, asking not to be named because the information is not public. The company declined to comment Wednesday.

The urgency among Argentine issuers stems from a sharp drop in country risk since the election. The spread over US Treasuries has narrowed to around 600 basis points, down from more than 1,400 points in mid-September, according to JPMorgan Chase & Co. data. 

The government expects the recent trade deal with the United States, along with a reform package headed to Congress, to help push country risk even lower, creating room for more debt sales – potentially even from the sovereign. The bond frenzy is also bringing much-needed dollars into the cash-strapped nation. The peso strengthened in the weeks after the vote and is now trading past 1,400 per dollar for the first time since October as market confidence improves.

“After several major corporate deals, the provincial segment kicked off with a successful issuance from Buenos Aires,” said economist Gustavo Ber, director of local consultancy Estudio Ber. “There’s clear investor appetite abroad. All of this sets the stage for a potential sovereign issuance.”