The Government issues a 100-year bond in USD at 7.125%
This financing transaction shows the market’s confidence in the normalization of the Argentine economy.
June 19, 2017
The Ministry of Finance announces the issuance of a 100-year bond for USD 2.75 billion with a coupon of 7.15% and yield at 7.9%.
This transaction is part of the Government’s objective to guarantee financing under the best possible conditions for the growth of the country and the creation of jobs.
Despite today’s uncertainty in international markets, the Government proves, with its administration, the ability to obtain very long-term financing at the lowest nominal rates of Argentine history.
“An issuance of this kind is possible thanks us being able to recover the world’s credibility and its confidence in Argentina and the future of our economy,” Finance Minister Luis Caputo said.
With this issuance, Argentina is now part of a select group of countries with 100-year sovereign bond issuances such as Mexico, Belgic, Ireland, China, Denmark or Sweden. “We are closer to countries such as Belgic or Mexico rather than to Venezuela, with whom the previous Administration used to issue debt with 5-year maturities and 15% rates. This shows confidence not only in our Administration but also in the future of the country”, Mr. Minister added.
The Minister of Finance highlighted: “This operation demonstrates prudence and responsibility: we are taking advantage of a moment of very low rates at a global level and it is important to balance the maturities of our debt”.
Caputo added: “We don’t have to lose perspective; what we are paying in this issuance is what the United States paid for their long-term debt in the 90s. Issuing debt with long-term maturities and at low rates is to conduct a responsible and prudent administration of our debt”.