The province of Córdoba carried out a financial operation this Tuesday by issuing debt securities for a total of USD 800 million. The launch coincided with a day when Argentina's country risk managed to break through the floor of 500 basis points after several years. This issuance represents the maximum amount that the district was authorized to operate within international capital markets.
Investor interest far exceeded official expectations by receiving bids that reached a total of USD 1.6 billion. A total of 119 investor accounts participated in the auction, with a strong presence of funds from Great Britain standing out. This growth in the diversity of subscribers reflects renewed confidence in the fiscal soundness maintained by the State of Córdoba.
The new securities called PDCAR 2035 were issued under New York law with a fixed interest rate of 8.6%. The capital repayment term was set at 9 years, becoming the longest period obtained by a subnational state in the country. Amortizations will be carried out in stages during the periods of 2033, 2034, and 2035 in order to smooth the burden of the commitments.
Investment in public works and debt profile
The funds obtained will be used mainly to finance strategic infrastructure projects in different parts of the province. This capital injection will allow Córdoba to guarantee the continuity of public works scheduled for 2026. External funding is vital to offset financial constraints and ensure the management plan envisaged for the current institutional cycle.
Part of the financing will be used to repurchase bonds maturing in 2027, thereby reducing pressure on future accounts. With this move, the provincial economic team is managing to extend payment terms and optimize the costs of the existing external debt. Minister Guillermo Acosta led the negotiations in New York, seeking the right moment to avoid volatility in global markets.
The province is positioning itself as the first Argentine district to access external credit this year, serving as a benchmark for other sectors. The USD 800 million are expected to be effectively available in the administration's accounts as of next February 3. The success of the operation confirms the favorable business climate that is beginning to take shape as a result of the new national macroeconomic policies.
