Argentina

Argentine stocks and bonds enjoyed a strong week after President Mauricio Macri’s Cambiemos coalition’s impressive showing in mid-term elections on October 22, and one issuer has wasted no time in jumping on the improving sentiment.

Lender Banco Hipotecario, which was the first Argentine borrower in cross-border markets after Mauricio Macri’s presidential election win in November 2015, could also be the first to issue after the president’s successful showing in mid-terms last Sunday.

Argentine bonds and stocks rallied strongly on Monday after the ruling Cambiemos coalition bettered the predictions of already favourable opinion polls at Sunday’s mid-term elections.

Luis Caputo, the finance minister of Argentina, said on Wednesday that the South American sovereign would likely return to the euro-denominated bond market in late October or early November.

Argentine finance minister Luis Caputo said that Argentina would issue two further international bonds in 2017 although it will likely avoid the dollar market, where it has raised over $9.5bn of funding so far this year.

A strong aftermarket performance by the latest debut international bond from an Argentine province should encourage more local governments to follow suit.

Argentina’s most north-western province raised $210m of green bonds due in 2022 on Wednesday, as bankers say activity is ready to recommence in earnest.

Argentina’s most north-western province became the 15th regional or municipal government in the country to issue international bonds on Wednesday as Jujuy raised $210m of green bonds due in 2022.

The Province of Jujuy hit the road this week ahead of a potential inaugural international bond sale, but it is not clear how many of the growing list of likely Argentine issuers will come to market in the September rush.

Potential first-time issuer the Province of Jujuy could become the second Argentine green bond issuer after mandating two banks for a fixed income investor roadshow.

Mauricio Macri’s ability to persuade Argentines of the long term benefits of his reforms amid a tough economic environment brought rewards to bond investors this week and left market analysts pleasantly surprised.

Argentine credits tightened throughout the start of the week as bond markets basked in better than expected results for the ruling party at Sunday’s primary elections.