Argentina CFOs rush to market as Milei win spurs bond deals

A flurry of Argentine companies is moving to sell global bonds as chief financial officers rush to capitalise on strong investor demand following President Javier Milei’s victory in congressional midterm elections.

Natural gas and power producer Pampa Energía SA is offering new dollar bonds maturing in 2037, with initial price discussions indicating a yield in the mid-to-high eight percent range, according to a person familiar with the matter who asked not to be identified. Transportadora de Gas del Sur, the energy distributor known as TGS, and oil-and-gas driller Pluspetrol SA are also holding meetings with fixed-income investors this week ahead of potential debt offerings.

After a lull in issuance in the lead up to the elections, these transactions signal a revival of activity now that Milei’s win has bolstered confidence that market-friendly reforms will stay on course in the nation. The most recent offers come after YPF SA and Tecpetrol SA priced bonds just days after the election victory.

“We expect primary activity to pick up gradually into year-end, with blue-chip corporates likely leading the way,” said Cristian Fera, an analyst at KNG Securities. “Lower-tier issuers may wait until 2026” as investors assess how Milei’s economic agenda evolves, he said.

Argentina borrowers are also stepping into a record year for global bond issuance, with emerging markets also enjoying a surge in dealmaking.

The extra yield investors demand to hold Argentine corporate debt over comparable US Treasuries has narrowed by more than 800 basis points since mid-September, according to data compiled by JPMorgan Chase & Co. The spread is hovering near its tightest level since late January.

The corporate bond deals could also help bring much-needed dollars into Argentina. The peso has strengthened since legislative elections on October 26, though it’s still not far from the upper limit of the trading band that caps its moves.