Early indications put the yield on new 10-year Argentine debt at less than 8 per cent, below the expected level, with shorter-dated three- and five-year bonds yielding around 6.6 per cent and 7.4 per cent, respectively. The 30-year bond is slated to yield around 8.75 per cent. The country is expected to raise up to $15bn in total.
“Argentina has one of the best economic policy teams in emerging markets and they have the potential to transform the economy,” said Anthony Simond, investment analyst at Aberdeen Asset Management. “They are still unproven so at the moment the country has to pay up to borrow, but we are positive.”
Secretary of Finance Luis Caputo has said Monday’s debt sale will be the only one until 2017.
The South American country has set initial price thoughts of 6.75% area on a three-year tranche and 8% area on a 10-year tranche. The issuer is also marketing a five-year at 50bp below the 10-year yield and a 30-year at 85bp over.
Proceeds are going towards paying holdouts who have recently settled with the government.
Deutsche Bank, HSBC, JP Morgan and Santander are acting as global coordinators, while BBVA, Citigroup and UBS are coming in as joint bookrunners. Pricing is expected on Tuesday.
Pubblicato da ML a lunedì, aprile 18, 2016CLICCA SULL'ICONA DELLA MOSCA TZE-TZE E VOTA PER QUESTO POST!