The City of Buenos Aires has issued US$85,000,000 9,25 % notes due 2012 at an issue price of 100 % (the “Notes”), implying a one of the lowest yields comparing to similar issuances made by other provinces of the Argentine Republic.
The transaction closed on December 27, 2011 and was completed under the City’s US$1,400,000,000 Medium Term Note Program (Programa de Títulos de Deuda Pública). The Notes were placed in the Argentine market and listed on the Buenos Aires Stock Exchange (Bolsa de Comercio de Buenos Aires). Moody’s Latin America Calificadora de Riesgo S.A. has rated the Notes ‘‘Aa2.Ar’’ and Standard & Poor’s Ratings Services S.A. has rated the Notes “raA-1+”.
Principal on the Notes will be payable at maturity and interest on the Notes will be payable semiannually on June 26, 2012 and December 26, 2012. Although the Notes are denominated in U.S. dollars, all payments under the Notes are payable in Argentine pesos.
The Issuer will use the proceeds from the Notes to pay and refinance debts.
Puente Hnos. Sociedad de Bolsa S.A. acted as Initial Purchaser of the Notes, The Bank of New York Mellon acted as Trustee and Principal Paying Agent, and Banco de la Ciudad de Buenos Aires acted as Paying Agent in Buenos Aires and Transfer Agent.
Counsel to Issuer
Muñoz de Toro Abogados, through its partner Ricardo Muñoz de Toro and associates Federico García Marcos and Naiara Fialayre.
Ezequiel Angelillo and Ignacio Petrocchi of the Office of Public Debt of the Ministry of Finance of the City of Buenos Aires, acting as in-house legal counsels to the Issuer.
Counsel to Initial Purchaser and Trustee
Bruchou, Fernández Madero & Lombardi, through its partner Carlos Lombardi and associates Alejandro Perelsztein, Sabrina Pociello and Tomás González Sabathié.
Linklaters LLP, through its partner Conrado Tenaglia and associates Matthew Poulter, Lucia Benabentos and Laurén Rauch.