Municipality of Córdoba secures USD 120 million international loan

The Municipality of Córdoba has signed an international loan agreement for USD 120 million to manage its existing debt. Structured by Deutsche Bank and provided by a group of United States-based private investment funds, the capital will be used exclusively to cancel current financial obligations.

The funds will cover all international bonds issued under New York law and certain liabilities from the local market. This move aims to mitigate refinancing risks and address the concentration of debt maturities caused by the short-term nature of the domestic market. By replacing immediate obligations with medium-term financing, the city seeks to improve its payment schedule and predictability.

The loan features a four-year term with a 24-month grace period on principal. Following the grace period, the principal will be amortized in five semi-annual installments, extending the final maturity date to mid-2030. The interest rate is variable, tied to the six-month SOFR index plus a fixed margin. The Province of Córdoba provides an irrevocable guarantee for the operation, with Banco de Córdoba acting as a counter-guarantee agent.