Argentina gets back to bond market
Currently Argentina is getting powerful demand for a global debt offering, which could hit approximately $15 billion. It already attracts flocks of investors searching for higher revenues during the period of relatively low interest rates.
Argentinian bonds will most likely get priced on Tuesday. The underwriting banks are still accepting orders, in spite of the fact, demand has already hit $70 billion.
A dollar-denominated debt worth of $15 billion would be the largest released by a developing country for the last twenty years.
As for another obvious sign of sincere interest to Argentinian debt, these are market participants, who have allocations. They’re currently getting offers for their debt at a 1.5% premium. That’s an expected issuance price.
The global debt offering is going to be the first such debt of Argentina since the country’s default in 2001. Argentinian government is going to make use of proceeds for paying back holders of Argentina’s defaulted debt. By the way, Argentina ended its 15-year dispute with
The steady demand also enabled Argentina to cut the yield to be paid, thus attracting investors.