Argentina has authorized the sale of US$20 billion in sovereign bonds to be issued under U.S. and British law, according to a decree published in the government gazette on Monday. The bond issuance, to take place under opportune market conditions, is part of the government's 2017 financial program.
To get the most favorable terms for Argentina, it is necessary to extend the legal jurisdiction of the transaction to state and federal courts in New York City and London, the decree said.
Bonds governed by U.S. and British law are often considered more valuable and fetch higher prices than obligations subject to the courts of Argentina.
The nominal amount of government bonds under the decree will be up to US$20 billion, according to the decree.
Business friendly president Mauricio Macri, elected in late 2015 on the promise of normalizing Argentina's economy and financial markets after years of heavy state intervention and non-payment of international debt obligations under the previous government