Córdoba projects moderate adjustments in the Real Estate Tax along with specific changes in Gross Income Tax for small commercial groups. Regarding expenditures, it anticipates that the main budget items will evolve in line with the estimated inflation for next year. Meanwhile, the financing strategy regains relevance in an external scenario that has improved after the legislative elections.
That analysis included the possibility of reopening the bond issued last June, whose placement allowed for obtaining US$ 725 million to cover commitments for the last quarter of 2025. The reopening would allow for issuance under the same conditions as the current bond without designing a new structure. Officials from the Civic Center confirmed that the alternative is on the table, although they emphasized that "there are no certainties yet."
Reopening a bond means adding more debt with the same coupon and the same maturity date, expanding the original series and improving its liquidity in the secondary market. This approach is considered when the instrument was well received and investor demand remains active. The analysis also considers that country risk has registered a significant decrease, which could improve financing costs.
Local financing options
In addition to external sources, the Province is considering raising funds in the local market, supported by the decline in interest rates that began after La Libertad Avanza's victory on October 26. Córdoba is authorized to take on debt in pesos for an amount equivalent to US$ 485 million, which would allow for diversification of financing sources. Any external issuance requires approval from the national government, so the decision also involves a relevant political variable.
Provincial officials indicate that the debt is used exclusively for infrastructure projects and emphasize that the stock in relation to revenue continues to decrease. They project that by the end of 2025, a little more than three months of revenue will be needed to cover the entire liability. The June issuance was the first external placement by an Argentine public entity since 2017 under New York State law.
The bond included amortization in three equal payments between 2030 and 2032, along with an annual coupon of 9.5% and a yield to maturity of 9.75%, which caused demand exceeding US$ 1 billion and local participation above 40%. The rating agencies assigned Caa2 for Moody's and CCC+ for Fitch, within the expected range for Argentine issuances. With this outlook, the Province will continue to evaluate the most convenient time to proceed with a reopening or a new placement.
