BUENOS AIRES – Argentina announced on Monday a $1 billion five-year bond aimed at international investors who will pay U.S. dollars and receive Argentine pesos in return, as the country looks to boost its foreign reserves.
Economy Minister Luis Caputo, writing on social media site X, described the bond as Argentina’s return to international markets, although that phrasing generally refers to debt that is both raised and paid in widely used currency such as dollars and euros, and is governed by laws outside the issuing country – typically in New York or London.
Argentina’s new tender is denominated in pesos and issued under local law through the local central bank regulatory mechanism.
In a post on social media, Finance Secretary Pablo Quirno said the bond, maturing in 2030, was aimed at raising funds to cover 8.55 trillion pesos in payments from debt maturing May 30 and interest payments made last week.
Traders had been expecting this announcement following Argentina’s recent $20 billion deal with the International Monetary Fund and a decline in its country risk index, an important reflection of how investors view the country’s public debt.
Caputo wrote on social media that the tender does not imply an increase in gross or net debt.
“It only represents an increase in the Central Bank’s dollar reserve levels and a significant extension of the duration of local currency debt,” Caputo said. — Reuters
