Pampa Energía is considering selling an international bond if market conditions remain favorable, as it looks to refinance a $750 million bond due 2027 and potentially buy assets, said CFO Nicolás Mindlin.
“We know there is currently an interesting window in the market for Argentine corporates,” he said on a conference call with investors on Wednesday.
Mindlin said Pampa is not in a hurry to tap the international market as the company has a solid cash position of nearly $1 billion and its next significant maturity is not until the 7.5% $750 million bond comes due in January 2027.
With this available cash, Pampa can “comfortably” meet its debt maturities and growth plans for the coming years, he added. Even so, Mindlin said the company will monitor market conditions for the right timing.
“We don’t rule out doing something early if the conditions are favorable,” he said.
In July, Transportadora de Gas del Sur, a gas pipeline operator part-owned by Pampa, raised $490 million in the sale of 8.5% 2031 bonds in its first deal in the international market for more than six years.
M&A
Mindlin said another reason to tap the cross-border market would be to acquire assets. But while the company is analyzing opportunities, he said the company’s large amount of cash on hand and low level of debt maturities until 2027 means that it can grow organically.
Pampa has looked at possibly buying oil fields to accelerate production, but none of the opportunities have been attractive in terms of pricing, he added.
It is “much more profitable” for Pampa to develop its existing assets than to pay “a high entry price for new assets,” Mindlin said.