Argentina Mulls $1.5bn In Peso Linked

Argentina is preparing to issue $500m worth of peso-linked bonds, the second round of issuance from its Bonar V, according to local press reports. On June 7, the sovereign tapped the markets for the same amount in 10.5% 2012 bonds at 95.50 to yield 11.70%. Bankers later said market conditions were among the worst they had been in weeks that day. Still, there was a strong bid for the bonds, with orders coming in at ARP5.3bn for the ARP1.5bn in notes. Argentina is looking to raise funds regularly in the markets to be able to pay down close to $2.5bn in Boden bonds that come due in August and a $900m coupon on its GDP warrants, due in December. On Monday, the outstanding Bonar V were trading at 94.2-95.1, according to one buysider.