San Juan Prepares International Debut with Bond Up to USD 600 Million

San Juan is analyzing the completion of its first placement in international capital markets in the coming weeks. The operation could reach USD 600 million, with a nine-year term and an amortization scheme in three equal installments during the last three years.

The central appeal for investors lies in the province's financial position. As of the first half of 2026, debt was around USD 185 million, while available cash reached approximately USD 338 million. Thus, net debt was negative by about USD 138 million, a condition not presented by other districts included in the comparative analysis.

The market estimates that the benchmark yield on the bond would hover around 8.5%. However, given that this is San Juan's first international issuance, the province is expected to offer an additional spread. A return close to 8.75% would be considered a particularly attractive option for investors.

The province also exhibits a track record of primary and financial surpluses, though it maintains strong dependence on national resources, which accounted for roughly 75% of its revenues in 2025. Meanwhile, personnel spending reached approximately half of provincial resources, above the average recorded between 2020 and 2024.

Mining development is another factor supporting expectations about future payment capacity. Vicuña, the initiative led by BHP and Lundin Mining and comprising Josemaría and Filo del Sol, encompasses copper, gold, and silver. The initial investment projected between 2027 and 2030 is around USD 7 billion, while total spending for its three phases is estimated at USD 18 billion.

The agreed framework for Vicuña includes provincial royalties of 3% on revenues over the operation's lifetime, an additional contribution of 1.5% of gross sales from the sixth operating year, and an advance payment of USD 250 million for infrastructure. Based on projected prices and production levels, those revenues could reach approximately USD 300 million annually by 2030.

With information from El Cronista — Minería.