Tuesday, October 6, 2015

Gov't seeks up to $1.5 billion in new dollar bond auction

The government will seek up to $1.5 billion today in the auction of a dollar-denominated bond due in 2020, according to the official gazette, as the country seeks to replenish foreign reserves after a huge bond payout.

Needing to plug the fall in reserves and finance a surge in spending, the economy ministry will hold three debt auctions this week, with all the notes being governed by Argentine law. The Economy Ministry said yesterday that an additional two series of issues will be sold on Thursday as well: dollar-linked debt valued at US$500 million and a peso-denominated paper worth three billion pesos.

The bond due to be auctioned today, the Bonar 2020, will have an 8 percent coupon.