Argentina returns to dollar debt market, issuing US$1 billion at 9.26% |
After nearly eight years out of foreign-currency financing markets, Argentina’s Treasury announced the result of its auction: it issued US$1 billion of a new four-year bond, carrying a 6.5% coupon, under Argentine law. More than US$1.4 billion in bids were received from over 2,500 investors. The yield at the cut-off price came to an annual rate of 9.26%.
“The rate is equivalent to a spread of 550 basis points above U.S. Treasury bonds of comparable maturity, or roughly 100 basis points below the yield on existing bonds with similar duration,” the Economy Ministry said.
“This reflects the value assigned to the market structure — with full amortization at maturity — and investors’ demonstrated confidence in the improvement of economic fundamentals.”
The yield came in slightly above what Minister........