Argentina is gradually returning to the international financial world. This was one of the topics addressed yesterday by governors with President Javier Milei. The first to emerge will be the Autonomous City of Buenos Aires (CABA), which had already sounded out the market in 2024, although it later backed out due to the high cost of financing. The fall of the country risk to 676 basis points and the shift in expectations after the elections have pushed provinces and companies to seek financing in international markets. Eager for dollars to refinance their debts or invest in infrastructure projects, sub-sovereign states are entering the arena on Wall Street, where they will seek to place new bonds. The City of Buenos Aires, Santa Fe, and Entre Ríos are evaluating issuing bonds in the short term, according to El Cronista. They will do so with the implicit permission of Minister of Economy Luis Caputo, who is also laying the groundwork for Argentina's return to international markets. 'My feeling is that part of the provincial support that the ruling party is seeking may be subject to the approval of the issuance of several of these credits,' explained Pedro Siaba Serrate, Head of Research & Strategy at PPI. Entre Ríos will wait a bit longer: it is evaluating issuing bonds in January 2026, according to El Cronista. This will be destined for strategic infrastructure projects and to roll over 70% of what matures in 2027 and move it to 2032. Santa Fe will follow the steps of CABA and Córdoba. Córdoba was able to go ahead. It is relevant to mention that there is no obligation to liquidate those dollars within a specific period, but rather it is a request for access to that market to pay coupons or principal. 'We are preparing to go to the most important market, which is the external one.' Before the end of the year, it will seek $600 million to refinance the two maturities of the $300 million Tango Series 12 Bond, with dates in June 2026 and 2027. The rate could even be lower than the one Córdoba obtained. After the companies, it is the turn of the provinces. 'In July we already had authorization by provincial law and we were working with the consortium of underwriter banks for the case that a window would open,' they added. The province governed by Martín Llaryora had taken the first step in June, which encouraged other districts. 'We are monitoring the market,' sources close to Governor Maximiliano Pullaro assured. 'It is a good preview of what could happen to us,' Rogelio Frigerio had said a few months ago. But now it seems to be their turn. In this case, they are evaluating raising between $500 million and $1 billion, which they would allocate to infrastructure and equipment works. 'The provincial placements could become an offer in the official market. Santa Fe is in the process.' The issuance of Córdoba's debt for $725 million in New York was at a rate of 9.75% and for seven years. The approval of the Law for the Restoration of the Sustainability of Provincial Public Debt authorizes it to take up to $500 million. 'That there are provincial placements before the sovereign one reflects lower levels of indebtedness, favorable fiscal results for many years (in the best-rated provinces) and much liquidity to manage the maturity profiles,' added Siaba Serrate. A rain of dollars, which are seeking assets with higher yields than Treasuries after the Federal Reserve's rate cut, is eagerly awaiting the details of the provincial bond issuances.
