The Province of Chubut announces the commencement of its Offer to Purchase for Cash its U.S. Dollar Step Up Secured Amortizing Notes due 2030

The Province of Chubut, located in Argentina, has announced the commencement of an offer to purchase its U.S. Dollar Step Up Secured Amortizing Notes due 2030, with the transaction set to settle on April 29, 2026. The province has not disclosed the maximum purchase price for the notes, which will be determined at its discretion. The offer, which began on April 20, 2026, is open to registered holders and beneficial owners of the existing notes, and it is not conditioned on minimum participation.

This strategic move by the Province of Chubut comes amid ongoing efforts to manage its debt obligations effectively. The offer allows the province to repurchase a portion of its outstanding notes, which currently have a principal amount of approximately U.S.$256.98 million remaining from an original issuance of U.S.$650 million. By repurchasing these notes, Chubut aims to improve its financial stability and potentially reduce future interest expenses. The province's decision to initiate this offer reflects a proactive approach to debt management in a challenging economic environment.

The offer is contingent upon the successful issuance of new global notes, which will be used to fund the repurchase. This dual approach allows the province to refinance its existing debt while maintaining liquidity. The terms of the new notes offering are expected to be aligned with market conditions, providing Chubut with flexibility in managing its capital structure. The province has indicated that the purchase price for the existing notes will include accrued interest, further incentivizing holders to participate in the offer.

In the broader context, this transaction highlights the ongoing challenges faced by subnational governments in Argentina and the need for effective debt management strategies. The province's decision to repurchase its notes is indicative of a trend among issuers seeking to optimize their debt profiles in light of fluctuating market conditions. As investors closely monitor these developments, the outcome of this offer could have implications for future financing activities in the region.

Overall, the Province of Chubut's offer to purchase its U.S. Dollar Step Up Secured Amortizing Notes represents a significant step in its financial strategy. The successful execution of this transaction could enhance the province's fiscal health and set a precedent for other regional governments navigating similar challenges. As the market awaits further details regarding the new notes offering and the outcome of the tender process, stakeholders will be keenly observing the implications for both Chubut and the broader Argentine debt landscape.