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Mendoza Sells 446 Billion Pesos in Inflation-Linked Bonds to Refinance 2026 Debt

The outsize sale signals investor confidence in a plan to push key payments into 2028 and 2029.

Overview

  • Mendoza priced the bonds Tuesday after orders far outstripped expectations, expanding the deal to more than 446,000 million pesos from a 75,000 million goal.
  • The sale split into two CER-indexed tranches: 24 months at 7.99% for 296,967 million pesos and 36 months at 8.50% for 149,246 million pesos.
  • The 24‑month note repays in full at maturity in April 2028, while the 36‑month note amortizes in three parts in months 30, 33, and 36, ending in April 2029.
  • Officials said the proceeds let the province refinance all payments due in 2026, a year with roughly 450,000 million pesos of maturities.
  • The province also plans to seek about 130,000 million pesos in a federal shared‑revenue advance at an estimated 15% annual rate, while the CER feature ties bond principal to inflation to protect investors’ real returns.