Córdoba, Argentina – June 30, 2025 – The Province of Córdoba has reported robust results in its recently concluded cash tender offer for its U.S. Dollar Step-Up Notes due 2027, a sign of continued investor engagement and mounting efforts by Argentina’s largest provincial economies to manage their sovereign debt profiles under persistent financial pressures.

Key Results: Majority of Notes Tendered

According to the official announcement, investors tendered an aggregate principal amount of US$360,338,929 out of the outstanding US$516,107,058 in notes, representing an impressive 69.82% participation rate. The tendered notes were accepted at a purchase price of US$995 per US$1,000 principal amount, underscoring the Province’s commitment to efficiently managing its debt – both in timing and pricing.

The tender offer expired as scheduled and settlement is anticipated on July 2, 2025, provided all conditions—including the successful placement of new international notes—are met. This deal forms part of Córdoba’s broader refinancing strategy, aiming to alleviate short-term repayment obligations and strengthen medium-term fiscal sustainability.

Context: Continued Debt Management Amid Economic Headwinds

Argentina’s provinces, including Córdoba, have faced intense fiscal strain after years of inflation, currency volatility, and limited market access. According to the Central Bank of Argentina, annual inflation remains elevated, with year-on-year CPI reaching over 270% as of Q2 2025. Under these circumstances, proactive debt management strategies—such as tender offers and new issuances—are critical.

The Province’s liability management operation follows a trend among Argentine sub-sovereign administrations seeking to extend maturities, lower financing costs, and mitigate refinancing risk amid uncertain macroeconomic outlooks. Earlier in 2025, other provinces such as Buenos Aires and Mendoza also engaged in similar market operations to improve their credit positions.

Details of the Offer Process

The cash tender offer, launched June 23, 2025, was conducted pursuant to a comprehensive Offer Document and coordinated with international advisors, including prominent global financial institutions J.P. Morgan Securities LLC and Santander US Capital Markets LLC. Morrow Sodali Limited, trading as Sodali & Co, acted as the information and tender agent, ensuring operational transparency and facilitating the exchange with noteholders worldwide.

Settlement is contingent on the successful closing of a concurrent new international notes offering by Córdoba, providing the liquidity necessary for payments to participating holders. The Province has reserved the right to change the terms or reject tenders at its discretion. Final acceptance and any proration details will be announced by July 1, 2025.

Investor Response and Market Implications

The high acceptance rate—nearly 70%—signals notable confidence from institutional investors in Córdoba’s credibility and the Province’s commitment to responsible fiscal stewardship despite Argentina’s broader economic turbulence. Analysts at Emerging Markets Debt have highlighted Córdoba’s relative fiscal discipline and resource endowments compared to other provinces, noting the Provincial government’s ongoing infrastructure investments and efforts to boost export revenues in agriculture and manufacturing.

The Province’s bonds remain a barometer for sentiment toward Argentine sub-sovereign risk, and the apparent investor appetite underscores cautious optimism amid otherwise challenging global conditions for emerging markets debt. Yields on Argentinian debt instruments, while still elevated, stabilized somewhat during Q2 2025 on prospects for national stabilization and anticipation of wider restructuring efforts.

New Notes Offering and Continued Fiscal Strategy

The tender offer is intricately linked to the Province’s new global notes issuance, which is available exclusively to qualified institutional investors in accordance with U.S. Rule 144A and Regulation S. The fresh capital raised will be used principally to finance the buyback, smoothen the Province’s debt service profile, and reinforce Córdoba’s presence in international markets.

This cohesive strategy is designed to bolster Córdoba’s credit profile, secure better terms on future borrowing, and provide more budgetary headroom for socioeconomic development.

How Córdoba Compares: Provincial Fiscal Performance in 2025

According to Fitch Ratings and independent economists, Córdoba has distinguished itself by maintaining a relatively low debt-to-GDP ratio among Argentine provinces—estimated at 10.8% in 2024—and a broad-based local economy anchored by agribusiness, automotive manufacturing, and technology sectors. Nevertheless, debt service in hard currency remains a strategic vulnerability, underscoring the importance of initiatives such as the current tender offer.

While many provinces have reached restructuring agreements since Argentina’s 2020 sovereign default, Córdoba’s ability to secure high participation rates positions it favorably for ongoing negotiations with creditors and may serve as a template for other sub-sovereign borrowers navigating volatile environments.

Looking Ahead

The Province of Córdoba’s successful tender offer sets the stage for further bond and liability management activity in Argentina, potentially enabling other provinces to restore capital market access under prudent terms. For investors and the international financial community, Córdoba’s progress in debt optimization will be watched closely as an indicator of broader regional economic stabilization initiatives.

The Province encourages participating noteholders to consult the Offer Document and relevant advisors and reiterates that participation in the new note offering is restricted to qualified investors in applicable jurisdictions.