Argentina Prepares To Issue More Bonar VII

Argentine financial press report that the sovereign is likely to issue a second tranche of its Bonar VII dollar-denominated bond to take advantage of current market liquidity and the low spread of its paper. Argentina is said to be ready to issue a further $500 million of Bonar VII, in the next two weeks, 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 and a further $1 billion of paper due in the first quarter.