Banco Rio Tightens

Argentina’s Banco Rio has narrowed price talk on a $150m 3-year peso-denominated bond to 11.625%, from initial whispers of 12.250% and then 12.000%. Some bankers say pricing could come even tighter, while others say the limit has been reached. The book for Rio is heard to be large, supported by the expectation that the Argentine peso will at worst remain stable for the next three years, and possibly even appreciate. Also supportive is the fact that the economic outlook for Argentina in the coming few years is rosy and relatively predictable. Ownership by Banco Rio is another positive, along with the Argentine peso issue’s scarcity value. Citi is leading.