Con el impulso de Vaca Muerta, Neuquén vuelve a Wall Street tras 9 años y busca hasta u$s 500 millones

Neuquén has returned to the international debt market after nearly nine years, seeking up to US$500 million through bond issuance, according to local government reports. The province began meetings with investors in New York this week, aiming to secure financing at interest rates between 7% and 8%. This marks the first time Neuquén has sought external funding since 2017, reflecting improved public finances and increased investor interest in Argentine assets. The initiative comes amid a broader economic context where Argentina's financial landscape has shown signs of stabilization. Neuquén’s administration plans to issue bonds with a maturity of five to seven years, with the structure yet to be finalized based on investor demand and market conditions. The Legislative Assembly has already approved the issuance of up to US$500 million, with at least 70% of the funds intended for infrastructure projects and the remainder for refinancing existing obligations. This move follows a strategic shift in how Neuquén manages its debt. Over the past few years, the province reduced its debt stock by more than 40% and improved its financial profile. The recent return to the international market is also supported by a credit rating upgrade from Fitch Ratings, which raised Neuquén’s rating to B- from CCC-, citing stronger fiscal capacity and growth in oil and gas-related revenues. Fitch’s decision was announced at the end of June, noting that the province’s ability to meet debt service obligations has significantly improved. According to projections, the coverage ratio for debt servicing will exceed two times in 2026 and 2027, compared to previous estimates near one time. The agency highlighted the balanced state of public accounts and the positive evolution of provincial resources, particularly due to higher hydrocarbon production and oil prices exceeding expectations. Between 2020 and 2025, operational income exceeded expenses, and for 2026, Fitch projected an operating margin of 13.1%, driven by increased hydrocarbon output and higher oil prices. Additionally, the agency noted the balance of the provincial pension system, the absence of short-term financing since 2024, and the potential to access international markets again. Despite these improvements, Fitch maintained Neuquén’s risk profile in the “Vulnerable” category, warning against over-reliance on hydrocarbons, which exposes the province to price fluctuations and regulatory changes. More than 92% of Neuquén’s debt is denominated in foreign currency, adding complexity to its financial strategy. The province faces upcoming debt maturities exceeding US$300 million, making long-term financing essential to avoid placing undue pressure on current revenue streams. By securing longer-term capital, Neuquén aims to maintain fiscal stability while supporting productive development. The success of this bond offering will depend on both investor appetite and prevailing market conditions, with final terms likely to emerge following the ongoing road show.