Category: Argentina

Trade credit insurance firm Euler Hermes has opened a subsidiary in Argentina, its third Latin American unit to date. “The Latin American region has a very high economic growth potential and offers enormous opportunities for exporters,” commented Arjan van de Wall, director of international development, marketing and strategy at the insurer. The company already has units in Brazil and Mexico.

Argentina’s Banco Rio is heard preparing to launch a $150 million three-year peso-denominated bond issue. Citi and Santander, the company’s parent, are leading the deal, according to executives away from the deal. Banco Rio was on roadshow in London yesterday, say bankers away from the deal.

Transportadora de Gas del Sur (TGS), the Argentine gas transmission company, has launched a buyback of its 2010 and 2013 bonds, which may cost it up to $424 million. The bonds were originally issued in connection with the company’s debt restructuring in 2004 when it exchanged just over $1 billion in debt for the new bonds. The buyback offer expires on May 7 with an early deadline of April 23.

Argentina’s consumer prices rose by 0.8% in March, taking annual inflation to 9.1%, reported national statistics bureau INDEC. The figures mean that first-quarter inflation was 2.2%. The biggest increase was seen in clothing (up 4.5%), followed by education (1.6%).

Argentine electricity distributor Edenor has filed with US Securities and Exchange Commission to raise up to $180 million via an initial share offering. Edenor plans to issue ADS, where each ADS represents 20 common Class B shares. The company will also issue common shares simultaneously in Argentina, according to a filing with local market regulator, CNV. Citigroup and JPMorgan are coordinating the transaction. The company said proceeds would be used to buy back debt, capital expenditure and general corporate purposes.

Argentina’s Province of Buenos Aires is preparing to launch a bond delayed since the end of February and hopes to raise around $400 million in the international markets, report local media. The province pulled the bond after emerging markets took a nosedive in February. Yield guidance then had been in the 9.5% range and the transaction was destined to satisfy the province’s financing needs for 2007, which run to over $500 million. Joint leads are Deutsche Bank and Barclays. The deal has a B3 rating. Last October, the province returned to the international capital markets for the first time since Argentina’s debt default to sell $475 million in bonds. The 12-year bonds were sold to yield 9.375%.

Argentina’s Banco Macro is planning to return to tap the capital markets with a $100 million issuance of unsubordinated bonds due 2012. Macro sold $150 million of 10-year bonds in January at par to yield 8.5%. Fitch Ratings said that it expects to assign a B+/RR4 local currency long-term rating and AA(arg) National long-term rating to the notes. According to Fitch, while the notes are denominated in U.S. dollars, the issue will carry a local currency rating as the issue is effectively converted to an Argentine peso amount at issue date, and the dollar amount to be paid at each of the amortization dates is determined by the peso/dollar exchange rate, in effect transferring the potential exchange risk to the holder of the notes.

Argentine state-owned Banco Hiptecario has earned a ratings boost from Standard & Poor’s following the success of its drive to diversify its business, according to the ratings agency. S&P raised the Bank’s long-term rating to raAA- from raA+ on Friday, while the short-term rating was hiked from raA-1 to raA-1+.

Argentina’s trade surplus continued to narrow in February, down 3% year-on-year to $720 million. According to national statistics bureau INDEC, imports rose 20% to $2.8 billion against exports of $3.5 billion, up 14%. This is now the second month the trade surplus has narrowed. Last month it contracted by 50% to $418 million from $838 million in January 2005.