Category: Argentina

Argentina has secured a $700 million loan from the Basel-based Bank for International Settlements (BIS), helping it to meet its $3.4 billion of debt payment obligations this month without the need for the Central Bank to dip too deeply into its foreign currency reserves. This month the sovereign faces a $2.3 billion expiry of its Boden 2012 bonds as well as debt payments owing to multilaterals. On July 26 it tapped the international markets for $500 million of dollar-denominated Bonar V bonds and a few days later it placed $482 million of its 2012 Boden dollar bonds directly with Venezuela. Argentina currently has foreign currency reserves of just over $26 billion.

Argentina has sold a further $482.2 million of its dollar-denominated Boden 2012 issue to Venezuela. The bonds were sold at “market price”. This brings to $2.7 billion the total of dollar debt sold to Venezuela so far this year. Argentina has raised $4.2 million since the start of the year via the sale of debt securities. In addition to the bonds placed directly with Venezuela, it has also sold $1.5 billion of 2011 bonds into the international capital markets. Its last foray to tap the markets was last week when it raised $500 million from the sale of its last tranche of 2011 Bonar V bonds.

Banco Patagonia of Argentina has placed a $4.62 million financial securitization. The issue has a hurdle rate of 11.6%. In the first half of the year, the bank led 10 non-synthetic securitization deals totaling around $109 million. The local market as a whole issued $1 billion worth of securities, the vast majority comprising the securitization of consumer credit, personal loans and credit cards receivables.

Argentina’s western province of Neuquén is planning to issue $250 million worth of bonds to fund much-needed infrastructure projects. The province’s governor, Jorge Sobisch, last week met with Argentina’s economy minister, Felisa Miceli, to discuss the offering. The funds raised will go towards several projects, notably the Mari Menuco Canal to provide irrigation for up to 30,000 hectares of land, the Tren Transandino del Sur to the border with Chile, a ring-road and several hospitals.

Argentina’s leading packaging manufacturer, Zucamor, has increased its stake in paper packaging firm Papel Misionero to take control of the Misiones-based manufacturer. Zucamor bought the 46.5% stake from BISA, owned by the Bemberg family, to increase its holding to 93%. The amount of the deal has not been publicly announced.

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.

Argentina’s Pan American Energy is planning to sell $250 million of five-year debt securities with an estimated yield of between 7.75% and 8.0%, lower than the country’s sovereign Bonar issue, sold yesterday, Wednesday. The bonds have been rated AAA by Standard & Poor’s. Pan American Energy is held jointly by British Petroleum (60%) and Bridas Corp (40%). It is the second-largest hydrocarbon producer in Argentina and a leading player in the Southern Cone. And with a 14% share of the gas market, it is also the second-largest gas producer in Argentina. The deal is being managed by JP Morgan and Citigroup.

Argentina’s economy ministry has approved the final $500 million tranche offering of the sovereign’s new dollar debt issue – Bonar V. The Republic sold the first $500 million tranche in March, which it sold to yield 8.36% and the second $500 million in May when it achieved a lower yield of 8.09%. The bonds mature in 2011 and carry a coupon rate of 7%. Argentina is facing debt payments of around $3 billion next month and recently announced a further sale of its US dollar debt Boden 2012 to Venezuela to raise $600 million.