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Montevideo, November 19th 2017 - 03:19 UTC

EU support: Argentina sells 30-year Euro bond, first time in history

Friday, November 3rd 2017 - 07:52 UTC
Full article 15 comments
That marked the first 30-year euro bond sale in Argentina's history, the ministry said, and is a clear support from European investors That marked the first 30-year euro bond sale in Argentina's history, the ministry said, and is a clear support from European investors
The issue brought the total amount of bonds Argentina has sold on international markets in 2017 to around US$ 13.4bn, higher than the US$ 12.75bn planned The issue brought the total amount of bonds Argentina has sold on international markets in 2017 to around US$ 13.4bn, higher than the US$ 12.75bn planned

Argentina finalized its foreign bond sale plan for 2017 on Thursday, selling 2.75 billion Euros in three bonds in an offering that was more than four times oversubscribed, the Finance Ministry said in a statement.

 Argentina sold 1 billion Euros in 5-year bonds at a 3.375% interest rate, 1 billion Euros in 10-year bonds at 5.25%, and 750 million Euros in 30-year bonds at a 6.25%.

That marked the first 30-year euro bond sale in Argentina's history, the ministry said, and is a clear support from European investors.

Thursday's issue brought the total amount of bonds Argentina has sold on international markets in 2017 to around US$ 13.4bn, higher than the US$ 12.75bn in issuance Finance Minister Luis Caputo said in June that the country was targeting for the year.

That itself was up from the US$ 10bn target Argentina had set earlier in the year, an increase Caputo attributed at the time to the peso currency's unexpected strength in foreign exchange markets.

Argentina needs to cover a primary fiscal deficit seen at 4.2% of GDP this year. Next year, the country plans to slash that shortfall to 3.2% of GDP but needs to cover a total financial deficit of 678.870 billion (US$38.79 billion), or 5.5% of GDP.

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  • Stoker

    Who in their right mind would touch these with a barge pole? Given the risk of:-
    1) A default by Argentina within 30 years and
    2) The collapse of the Euro due to the PIGS economies in the next 30 years.

    Nov 03rd, 2017 - 10:18 am +2
  • golfcronie

    I hope Argentina does well into the future, but they will have to change the culture. The lying, cheating and skullduggery. For a start they could release the documents in their archives that state that only the illegals were removed from the FALKLANDS and who actually stayed on to form what is actually called THE FALKLAND ISLANDS. If the Argie population saw the documents it may make a difference.

    Nov 03rd, 2017 - 12:13 pm +2
  • Marti Llazo

    @Johnny “Will be better if FIG extends his government in all Argentina ...It would be the number one country in the world”

    - In related matters, we see in the news that Argentina is getting help from Finland for the former's failed education system:

    In the news:

    “La educación finlandesa llega a la Argentina: qué dice el acuerdo firmado. El ministro de educación, Alejandro Finocchiaro, firmó un memorándum de entendimiento con su par finlandesa con énfasis en innovación y formación docente.”

    The effort is unfortunately bound for Argentine rejection and failure, since the education ministry representative noted that “humility” would be needed for Argentina to lower itself to observing how successful education systems were conducted in other countries:

    “Tenemos que tener la humildad de observar las buenas prácticas de otros países, no para copiarlas literalmente, sino para ver si algunas de ellas pueden adaptarse a nuestra realidad concreta”

    Nov 04th, 2017 - 02:50 pm +1
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