Argentines Test Local DCM

Aluminum producer Aluar has placed $50m in 2014 bonds at Libor plus 300bp on Argentina’s domestic market, according to brokers managing the sale. The bonds feature an 18-month grace period, and a mechanism to adjust the coupon at each interest rate period based on the price of aluminum, with investors guaranteed minimum all-in return of 6.5%. Proceeds from the sale, rated A+/Aa3 on a national scale, will fund investments and refinance existing debt. Citi and SBS managed the transaction, the first from a $300m shelf. Aluar is also preparing to raise funds through a local share offering of up to ARP500m. Separately, turbine producer Industrias Metalurgicas Pescarmona (IMPSA) has placed ARP200m ($53m) in 2012 bonds at the Badlar private rate plus 6.75%. Proceeds from the A/BBB+ deal will fund investments. Banco Macro managed that sale.