The fall in Country Risk and the rise in Fitch's rating improved access to credit for Argentine issuers.
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The City of Buenos Aires placed $500 million in debt in the international market at a rate of 7.375%, the lowest in its credit history since it gained autonomy in 1996. The operation, carried out 10 years ago under English legislation, shows that thanks to an orderly national macroeconomy, Argentine issuers are once again obtaining financing under better
The improvement in the rating reflected advances in key variables of the Argentine economy, including fiscal order, the strengthening of external accounts, the progress of economic reforms and a better perspective for the accumulation of reserves. In other words: the market began to put a price on a change of economic regime promoted by the Government of Javier Milei
.
In this context, CABA went out to seek $500 million and received offers for up to $3 billion, a relevant demand signal for an Argentine issuer. The City issued Series 14 of the Tango Bonus, with a cutoff coupon of 7.05% and a subscribed rate of return of 7.375%, down from the previous placement in November, which had been
7.8%. The president of the Argentines, Javier Milei.
The reduction in Country Risk, the rebound of sovereign bonds and the improvement of the credit rating created a more favorable environment for Argentine jurisdictions to access international financing under better conditions. With a more orderly Argentina, access to credit improves, investors are once again looking at the country and the financial cost is starting to compress
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For years, fiscal disorder, monetary issuance, controls, defaults and Kirchner improvisation made credit more expensive for the entire country. Every province, every city and every Argentinian company paid the cost of a destroyed macroeconomy. The rate is defined as trust, market confidence, built on fiscal balance, predictability and respect for commitments
