The Province of Buenos Aires is actively monitoring the market and discussing a potential return to the international capital markets. Sources of the Government of the Province of Buenos Aires say that they expect that the province’s improving fiscal position will feed into lower yields on their outstanding 2015s and 2021 bonds. With a large social and physical infrastructure needs the Province is keen to raise large, long-term debt and with the domestic capital markets only able to provide small ticket, short tenor instruments the Province is targeting re-entry to the international debt market.
“The PBA has always been in contact with investors,” says the source, who declined to be named because the topic is politically sensitive. “The possibility to access financing will be at the moment the cost of financing really represents the new fiscal situation of the PBA.”
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