Argentine builder IEB Construcciones issues $20 million bond for new projects

Argentine construction firm IEB Construcciones, formerly Dycasa, is venturing into the capital markets with its first-ever debt issuance. The company plans to raise up to $20 million through negotiable bonds to finance the working capital needs of its ongoing and upcoming projects.

This move signifies a new phase for the company following a period of financial and operational restructuring. Ignacio Abuchdid, president of Grupo IEB, explained that the bond will be a short-term, 12-month bullet instrument. Investors will receive quarterly interest payments, with the principal amount repaid in full at the end of the term.

While the final interest rate will be determined during the bidding process, the company is currently referencing a rate around 6.5% to 7% annually. IEB Construcciones anticipates strong interest from institutional investors, including insurance companies and large asset managers, but the issuance will also be accessible to smaller individual investors through various platforms and banks operating in the Argentine market.

Abuchdid highlighted that the $20 million will serve as working capital for a broad range of projects, not a single development. The company boasts a project pipeline valued at over $670 million, encompassing infrastructure, energy, mining, sanitation, real estate, and private works. Notable projects include work on Puerto Nizuc, a mixed-use development, and the potential construction of an internationally branded residential tower in Puerto Madero.