Category: Argentina

Argentine private bank Banco Macro Bansud, is planning to sell up to $250 million of 10-year bonds next year, according to Bloomberg. On Monday Banco Macro continued its capital markets comeback with a $150 million issue of 30-year notes. The notes priced at par to yield 9.75% until December 18, 2016 before stepping up to 7.11% over six-month Libor from that date until maturity on December 18, 2036. Credit Suisse and UBS led the transaction.

Argentina’s annual rate of inflation dropped to 10% in November, from 10.5% in October, according to INDEC, the national institute of statistics. Consumer prices rose 0.7% during the month – driven by higher food costs – and takes cumulative inflation for the year through November to 8.8%. Inflation now looks set to close the year under 10% and compares with inflation last year of 12.3%.

Transener, Argentina’s largest electricity provider, is to issue up to $250 million worth of bonds maturing 2016 and paying a fixed interest rate. The company will use the money raised to fund its buyback of more expensive 2016 bonds. Last week, the company launched a tender offer to buyback around $55 million of the bonds and succeeded in a 72% take-up by bondholders. The new 10-year bonds have an average life of 8.5 years and will amortize in equal, annual payments from 2013. The bonds are to be sold under 144A rules for institutional investors and Regulation S rules for foreign issuers. Deutsche Bank and Citigroup will lead.

Argentina sold a second $500 million tranche of its 7% coupon 2013 Bonar VII, Thursday, at 96.26 to yield 8.03% on a semi-annual basis. Total demand was $1.63 billion and the government received bids between 94 and 97 at auction. Argentina took advantage of market conditions to achieve a yield below that (8.4%) secured for the first tranche of this dollar issue on September 7. The sale doubles the issue to $1 billion. Settlement is December 5.

Argentina is likely to issue a second tranche of its Bonar VII dollar-denominated bond in the next few days to take advantage of current market liquidity and the low spread of its paper, according to market sources. Argentina will issue a further $500 million of Bonar VII to open its 2007 financing. Argentina sold the first $500 million tranche of the bonds, which mature in 2013, in September, as part of a total $1.5 billion program. The bonds were sold to yield 8.45%. The government needs to meet debt payments of $65 million for bonds maturing in January next year and a further $1 billion of paper due in the first quarter.

Argentina’s industrial output rose 0.4% in October from September and was up 7.3% compared with the same month last year. Cumulative figures for the year through October showed production up 7.6% when set against the same period in 2005. According to the country’s national statistics bureau (INDEC), output was driven by the automotive and non-metallic minerals sectors.

Argentina’s Banco Macro Monday confirmed it is planning to sell up to $150 million of non-cumulative junior subordinated debt securities before the end of the year. The bonds will be issued under the Argentine Tier One. Underwriters are apparently Credit Suisse and UBS. The Bank intends to use the money raised for loans. Macro raised $307 million in March with the first IPO from an Argentine company since 1997.

Lawyer Sergio Chodos, currently at law firm Bruchou, Fernández Madero, Lombardi & Mitrani, will become Argentina’s new secretary of finance on December 1. He replaces Alfredo MacLaughlin, who resigned last week for health reasons after a year in the post. The first task facing Chodos will be to restart debt repayment talks with the Paris Club group of lenders. The 36-year old Chodos was involved with the debt restructuring program in 2005 and served as an advisor to the finance ministry from June 2003 until March this year. He specializes in capital markets and banking law and has worked at several law firms in the US.

Banco Macro is rumored to be lining up the first perpetual bond from Argentina, a $150 million perp non-call five. Underwriters are apparently Credit Suisse and UBS. Bankers assumed to be on the deal declined to comment. Macro raised $307 million in March with the first IPO from an Argentine company since 1997. Joint bookrunners were Raymond James and UBS. Perpetuals have been very popular with Brazilian corporates, and there have been some Mexican issues too. It will be interesting to see what appetite the Asian retail investor base has for an Argentine name.

Argentina’s third-largest credit card company, Tarjeta Naranja, is to offer $100 million of unsubordinated fixed-rate notes. The dollar-denominated notes have been rated B by Fitch ratings; the issue carries a local-currency IDR. The bonds carry a maturity of five years. Citigroup will be the sole bookrunner. The bonds will be listed in Luxembourg and Buenos Aires and will be sold under New York law.