Córdoba Province sells US$725 million of debt abroad

Argentina’s Córdoba Province tapped fixed-income investors Thursday in the country’s first international debt sale by a local government since President Javier Milei took office in late 2023.

Córdoba, the country’s second largest by population, sold US$725 million of dollar notes due in 2032 under New York law, according to a person familiar with the matter. The securities priced at par and carry a yield of 9.75 percent, the person added, asking not to be named discussing a private transaction.

The proceeds of the notes will be used to conduct a buyback of the province’s securities due in 2027, with the remainder of the cash to be used to finance infrastructure projects and repay existing liabilities.

Córdoba’s sale follows a flurry of emerging market borrowers rushing to credit markets this week to lock in financing ahead of any potential geopolitical escalations in the Middle East and before any developments in US President Donald Trump’s trade war sap risk appetite.

The province’s return to global markets also highlights how Argentina’s local governments are benefitting from investor optimism surrounding Milei’s economic overhaul and its success in slashing inflation. The bond sale is also poised to serve as an early signal to investors that the sovereign may also look to launch its own return to international capital markets.

In May, Milei’s government hailed its return to markets in a US$1-billion debt issuance where investors bought notes denominated in pesos with dollars, though the bonds are under Argentine law.

Bankers from JPMorgan Chase & Co and Banco Santander arranged the transaction.