January 4, 2018
Argentina issued bonds in the international market for a total amount of USD 9 billion in 3 parts:
- USD 1.75 billion in 5-year bonds, at a yield of 4.625% (4.625% coupon)
- USD 4.25 billion in 10-year bonds, at a yield of 6% (5.875% coupon)
- USD 3 billion in 30-year bonds, at a yield of 6.95% (6.875% coupon)
These rates are the lowest in Argentine history for bond issuances in dollars in the international market, and they represent 100 basis points below the rates of similar bonds issued in January 2017.
The demand for Argentine bonds totaled USD 21.4 billion, 2.4 times the amount issued, with the participation of more than 450 investors from North America (46%), Europe (35%), Asia (11%), and other regions (8%). The issuance was led by Citigroup, Deutsche Bank Securities, HSBC, BBVA and Santander.
“We are more than satisfied with this new issuance, because we have achieved, once more, a significant reduction of our financing cost with the lowest rates in our history. This shows that investors have more enthusiasm and confidence in the economic and political situation of the country”, Minister of Finance Luis Caputo said.
“This financing covers about 1/3 of needs for 2018 and more than 50% of infrastructure investment included in the budget for this year, which is very important for the development of our country”, Mr. Minister added.