Neuquén Province ponders bond sale after investor meets

Argentina’s Neuquén Province is mulling a bond sale after meeting with fixed-income investors late last year, according to a person familiar with the matter.

State officials made presentations to funds including Blackrock and Neuberger Berman in New York and London during the months of October and November, the person added, asking not to be named discussing deliberations that are private. Spain-based lender Santander helped to arrange the meetings.

Spokespeople from the two asset managers declined to comment, while Santander didn’t immediately respond.

For now, any sale remains on hold as authorities assess their financing needs and watch for how markets react to a potential federal government deal with the International Monetary Fund, the person said.

The considerations come against a backdrop of mounting optimism over Argentina’s economy, its growth trajectory and Neuquén’s own popularity with investors. The Patagonian province is front-and-centre of Argentina’s shale oil industry.

Its bonds due in 2030, secured by oil and gas royalties, change hands at 102 cents on the dollar, according to Bloomberg-compiled pricing data. Unsecured debt with the same maturity trades at some 96 cents on the dollar.

Neuquén’s plans, while preliminary, mark the third Argentine regional government that’s looking at a potential return to international bond markets. Buenos Aires City and Córdoba Province are each considering the sale of around $500 million of bonds between March and May, Bloomberg reported on Wednesday.