Argentina Sells $500 Million Bonar To Yield 8.34%

The Republic of Argentina has successfully sold the last tranche of its new Bonar V US dollar-denominated debt issue to yield 8.34%, below the 8.45% predicted by some analysts. The $500 million offering was five times oversubscribed. Although the yield paid is higher than the 8.09% paid in May, the spread over comparable US Treasuries was lower, at 309 basis points. The bond carries a coupon rate of 7% and matures in 2011. Argentina first sold Bonar V bonds on March 22, when it placed $500 million of the paper at a yield of 8.36%. On May 3 it sold a second tranche of $500 million.