Argentina's Province of La Rioja plans to initiate talks with holders of its dollar denominated 2025s after it "faced limitations" on making a coupon payment due earlier this week. The government said in statement released on Wednesday that it would make best efforts to cover the payment inside the 30-day grace period, but it will start consulting holders on ways to achieve debt sustainability. The deal was the province's debut green bond, with proceeds slated to finance the development of the Arauco Wind Farm project and other public works.
Argentina will postpone until Sept. 30 the payment of capital of $1.47 billion he AF20 Dual Bonds maturing on Thursday, the Ministry of Economy announced. The interest ($105 million) will be paid in term as well as the payment in full to individuals with bonds of up to $20 thousand ($9.3 million). After the announcement, Argentine over-the-counter bonds fell an average of 1% on Tuesday, while the country's risk index expanded 100 basis points to 1982, according to the JP Morgan Plus index.