One of Argentina’s most prominent provinces marks a milestone as the first public institution in the country to secure external, USD financing since 2017, returning to international markets amid strong investor demand.
The Province of Córdoba has made a successful return to the international capital markets with a USD 725 million bond listing on the Luxembourg Stock Exchange (LuxSE). Issued in two tranches, the bond will mature in July 2032 and carries a coupon of 9.75%. This landmark transaction marks a key moment in the province’s re-engagement with international investors, reflecting renewed confidence in its economic outlook.
The issuance follows Córdoba’s 2021 debt restructuring and marks the first time since 2017 that a public sector institution in Argentina has tapped into international capital markets through a USD-denominated bond issuance. It comes at a time of record issuances from Latin America, underlining the province’s ability to move decisively and leverage favourable market conditions.
Strong investor demand
Launched during a particularly active week for Latin American debt issuance, Córdoba’s bond attracted strong demand, with more than 40% of allocations going to local investors – a sign of growing domestic confidence.
Proceeds from the issuance have been earmarked to repurchase outstanding bonds maturing in 2027. The remainder will be allocated to key infrastructure projects and the repayment of other existing obligations, reinforcing Córdoba’s commitment to sustainable development and fiscal responsibility.
A breakthrough for the province’s return to international capital markets
“Having our bond listed on the Luxembourg Stock Exchange provides greater international visibility and prestige for the Province, while underscoring our commitment to the highest standards of transparency and financial governance.
This step opens the door to a broader universe of global investors and strengthens Córdoba’s presence in international capital markets. We are convinced that this path will allow us to channel resources into infrastructure and development projects that will directly improve the quality of life of our citizens and foster the sustainable growth of our economy,” said Martín Llaryora, Governor of the Province of Córdoba.
“We are proud to welcome the Province of Córdoba back to the Luxembourg Stock Exchange with this issuance, which marks an important step for the province. As the first international public sector issuance stemming from Argentina since 2017, this transaction highlights the province’s renewed capacity to access international capital markets and underlines the important role that sub-sovereign issuers can play in promoting financial transparency and fostering investor confidence,” commented Arnaud Delestienne, Chief Commercial Officer and Member of the Executive Committee at LuxSE.
