Category: Argentina

Argentina took advantage of market conditions to place the third tranche of its dollar-denominated Bonar VII bond issue, Thursday, achieving a yield of 7.71% – at the low end of market expectations. The sovereign sold $500 million of the seven-year paper, which matures December 2013. The Republic last issued the securities in November when it achieved a yield of 8.03%. The government has $500 million left of the $2 billion program. Argentina’s external financing needs in the first quarter of this year total $3.76 billion.

Argentina will auction the third tranche of its dollar-denominated Bonar VII bond issue today, Thursday, according to the economy ministry. The sovereign is offering $500 million of the seven-year paper, which matures December 2013. The Republic last issued the securities, which carry a coupon of 7%, in November when it achieved a yield of 8.03%. This time around, Argentina will be looking for a yield of around 7.8%, say analysts. The government has so far issued $1 billion of a total $2 billion approved. Argentina’s external financing needs in the first quarter of this year total $3.76 billion. On Wednesday, Argentina’s country risk hit another record low, dropping to 190 basis points, as measured by JPMorgan’s EMBI+ index.

Argentina’s Banco Macro priced Tuesday a $150 million 10-year at par to yield 8.5%. The price was tightened from 8.625% area and the deal was heard trading up marginally on the break. Sole bookrunner was Credit Suisse and orders were heard in excess of $400 million. The deal was rated B2/B+ and highlighted the continued thirst for yield from investors. Proceeds are for general funding. Macro was last in the market in December with a $150 million 30NC5 at 9.75%. Macro started its capital markets comeback in March 2006 with an impressive $300 million IPO.

The board of Argentine Banco Rio is hoping for shareholder approval for a debt issuance program worth $500 million. The bank is hoping to raise financing via short- to medium-term notes, denominated in local or foreign currency, and has called a shareholders’ meeting for February 16 to vote on the proposals.

The third $500 million tranche of Argentina’s Bonar VII dollar bond issue is back on track and may come to market by the end of this week, according to local media reports. The issue was postponed from the beginning of the year after a drop in the bond prices reportedly caused by the “Chávez effect”, after Venezuela’s president unveiled his nationalization plans. This time around, Argentina will be looking for a yield of below 8% on its 2013 bonds, say analysts. The Republic last issued the securities in November when it achieved a yield of 8.03%. It has so far issued $1 billion of a total $2 billion approved. Argentina’s external financing needs in the first quarter of this year total $3.76 billion.

Argentine investment banking firm MBA Group is to base its advisory operations in Central America in Panama via MBA Centroamérica, as of January. MBA has recruited Matias Eliaschev to be managing director of the new entity. Eliaschev joins from the International Finance Corporation (IFC), where he was responsible for business development and private equity investments in the financial sector.

Argentina and Venezuela are planning a new debt issue this year, along similar lines to the so-called “bono sur” launched by the sovereigns last year. According to a report by news agency Efe, a Venezuelan government source said that both nations would issue $500 million in an offering aimed at the domestic market in Venezuela. Meanwhile, Venezuela’s president, Hugo Chávez, has said that his government will continue to buy Argentine dollar debt this year to add to the $3.3 billion already purchased, consolidating its role as Argentina’s largest financier.

Argentina achieved record exports of $46.6 billion last year, according to figures released by the economy ministry. The 15% annual increase in sales led to an increase in the trade surplus to $12.4 billion, despite the 19% rise in imports to $34.2 billion. GDP growth of around 9% helped drive up the demand for capital goods imports, said the ministry.

Argentina’s economy grew by 8.5% between January and November last year, according to the government. Year on year, the economy expanded by 8.6% in November, driven by construction and industrial production and rose 0.6% on a monthly basis.

Moody’s Investors Service has changed the rating outlook to positive, from stable, for two local governments in Argentina. The agency said the action was prompted by a similar, recent, outlook change for Argentina’s B2 foreign currency country ceiling for bonds. The governments and ratings affected are: City of Buenos Aires foreign currency bonds rated B2 (global scale) and Aa3.ar (Argentina national scale). Both were assigned a positive outlook; these ratings are constrained by Argentina’s foreign currency country ceiling. The outlook for domestic currency bonds rated B1 and Aa2.ar remains stable, said the agency. Meanwhile, Province of Mendoza foreign currency bonds due September 2018 rated B2 (global scale) were assigned a positive outlook; this rating is constrained by Argentina’s foreign currency country ceiling. The outlook for the province’s domestic currency issuer ratings of B1 (global scale) and Aa3.ar (Argentina national scale), as well as for its foreign currency bonds due September 2018 rated Aa3.ar (Argentina national scale), remains stable.