Overview
- Chubut issued a dollar bond for $650 million with a 10-year final maturity and a 9.45% rate.
- The bond is governed by New York law and is secured by hydrocarbon royalties, which are payments tied to oil and gas production.
- The province earmarked the money to repurchase its Bocade 2030 debt, which has about $256 million outstanding, through a cash tender offer.
- The notes repay in 28 quarterly installments starting in the third year, which spreads out the province’s dollar payments over time.
- The deal makes Chubut the fifth Argentine province to tap foreign markets under Javier Milei, adding to billions raised that, analysts say, have supported dollar inflows as provincial budgets remain tight.