Argentina Reopens Debt Swap

The government of Argentina has announced that it will reopen a debt swap, exchanging 2033 discount bonds, global 2017 bonds and GDP warrants for around $6bn in defaulted debt. In June, creditors agreed to exchange roughly $12.1bn in defaulted bonds, or 66% of the $18.3bn Argentina had been targeting. In that deal, investors were offered a discount option, which included discounts due 2033, new 8.75% of 2017 globals and GDP-linked securities. The discounts pay 8.28% in dollars, 7.82% in euros and 5.83% in pesos. Investors were also offered a par option, which consisted of pars due 2038, a cash payment and the GDP-linked unit. Dollar pars pay 2.50% from September 30 to March 31 2019, 3.75% from the latter date until end-March 2029, and 5.25% to maturity. Euro pars pay 2.26% from September 30 to March 31 2019, 3.38% from the latter date until end-March 2029, and 4.74% to maturity. Peso pars, which are adjusted for inflation depending on the CER, pay 1.18% from September 30 to March 31 2019, 1.77% from the latter date until end-March 2029, and 2.48% to maturity. The offer closes on December 30. Argentina had defaulted on about $95bn in debt in 2001.