Macro Back For More

Argentina’s Banco Macro is planning to return to tap the capital markets with a $100 million issuance of unsubordinated bonds due 2012. Macro sold $150 million of 10-year bonds in January at par to yield 8.5%. Fitch Ratings said that it expects to assign a B+/RR4 local currency long-term rating and AA(arg) National long-term rating to the notes. According to Fitch, while the notes are denominated in U.S. dollars, the issue will carry a local currency rating as the issue is effectively converted to an Argentine peso amount at issue date, and the dollar amount to be paid at each of the amortization dates is determined by the peso/dollar exchange rate, in effect transferring the potential exchange risk to the holder of the notes.