Argentina Central Bank Allows Perpetual Bonds

Argentina’s Central Bank is to allow banks to issue bonds with tenors over 30 years. Perpetual bonds have no maturity date and are not redeemable. Instead they pay a steady stream of interest forever. The move by the Central Bank is aimed at enabling banks to increase their capital for regulatory purposes so that they can expand their lending portfolios. Local banks such as Banco Galicia, Banco Patagonia or Banco Hipotecario are considered likely candidates to issue such bonds.