Monday, August 24, 2015

Argentina sells $1.087 bln of local dollar-linked bonds

I can't believe that this still happens even after 2001! 

BUENOS AIRES, Aug 18 (Reuters) - Argentina on Tuesday sold $1.087 billion of dollar- denominated bonds to be redeemed in pesos in 2017, the economy ministry said, in an auction that drew fewer bids than the amount of debt on offer.

Although Argentina originally indicated it would sell $500 million of the Bonad 17 bonds, its official gazette on Tuesday said it would seek bids for up to $1.5 billion of the notes. Redemption of the Bonad 17s, to be governed by Argentine law, will be in pesos at the official exchange rate.
Outgoing President Cristina Fernandez's access to global credit markets has been hampered by an unresolved default, forcing the government to sell debt in the local market. Foreign reserves have dwindled in past years.

Fernandez has increased public spending this year to bolster the country's anemic growth ahead of presidential elections on Oct. 25. Investors in the bonds, which carry annual a rate of 0.75 percent, will be paid interest twice a year, on Feb. 22 and Aug. 22, until maturity in February 2017, the gazette notice said on Tuesday 

(Reporting by Richard Lough and Walter Bianchi; Editing by Alden Bentley and Steve Orlofsky) ((; +54 11 4318 0645; Reuters Messaging:

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