Argentina’s Garbarino Lands $40m Securitization

Argentine appliance retailer Garbarino has raised $40m in the local ABS market with a 3.5-month vehicle, priced at a very high annual rate of 21%. The deal reflects tight market conditions, in which investors are demanding high yields for short-term issuances. Participants in the deal can expect to gain an impressive 6.125% for holding the notes for just over a quarter of a year. Not surprisingly, the book was 2.4x oversubscribed. Santander Rio structured and placed the deal.