Gas Natural Argentina Sells Local Bond

Gas Natural Ban (GNB), the Argentine unit of Spain’s Gas Natural Group, has sold ARP100m in 2011 bonds on the local market. The 18-month notes pay Badlar plus 360bp. HSBC and Santander Rio managed the sale. Moody’s rates the notes A1 on a national scale, noting Gas Natural is the only Argentine gas company that has been allowed to increase tariffs since 2002. Meanwhile, static rates have plagued its competitors’ balance sheets, resulting in defaults and restructurings.