Fitch Rates The Province of Salta's 9.125% Senior Notes Reopening due in 2024 'B'
The USD50.0 million will be consolidated with the preceding USD300.0 million issued on July 7, 2016 to form a single series under the same terms and conditions. The notes are denominated in U. S. dollars, to accrue a fixed interest rate of 9.125% payable on a semiannual basis. The maturity date is July 7, 2024 and capital payments will be equal in the last three years (July 7, 2022; July 7, 2023; and July 7, 2024).
Fitch previously rated the bond for the total USD300.0 million authorized by the provincial legislature under Law 7931. The resulting outstanding amount is now USD350.0 million.
The retap was priced above par (107.179%) due to improved market conditions. The province expects to use the proceeds from the reopening to sustain capex spending and stimulate the local economy in a national recessionary context.
Fitch currently rates Salta as follows:
Province of Salta:
--Long-Term Foreign and Local Currency Issuer Default Rating (IDR) 'B'.
The Rating Outlook is Stable.