MercoPress. South Atlantic News Agency
YPF building credibility buys back 79 million dollars in 2028 bonds
CEP Galuccio is sounding banks for a possible issue of global bonds Argentina's nationalized oil and gas company YPF said on Friday it had bought back 79 million dollars in 2028 bonds that it was obliged to repurchase in the case of a state takeover.
YPF, Argentina's biggest oil company, was nationalized by the government in May when it seized a 51% controlling stake from Spain’s Repsol. This activated a contract clause requiring the buy-back of YPFs sole outstanding bond, which had a face value of 100 million and carried a 10% coupon.
“Just as it was originally thought out in the sale of this benchmark 30-year bond, YPF abided by the contract in order to protect investors,” YPF said in a statement on Friday.
Holders of 21 million in the bond did not participate in the buy back, said a YPF source with knowledge of the situation.
YPF is sounding out banks about a possible new issue of global bonds as it looks to fund an ambitious investment plan to revive flagging production.
President Cristina Fernandez seized control of YPF from Repsol, accusing the Spanish oil major of investing too little and making the country increasingly reliant on pricey imports.
Chief Executive Officer Miguel Galuccio, a former executive at global oilfield services giant Schlumberger, said YPF plans to reverse the nation's energy deficit would require an annual investment of 7 billion dollars from 2013 through 2017.
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Read all comments“Just as it was originally thought out in the sale of this benchmark 30-year bond, YPF abided by the contract in order to protect investors,”
Jul 21st, 2012 - 11:18 am 0Oh! We need to add some more to the statement, YPF said: “following a loud 'phone call from Cristina she stated ”And don't mention the investors are FatBoy and our Mates or else“ ”.
OH! I DON'T THINK I GOT THAT RIGHT.
LOL :o)
#1 Is that the best you can come up with? Not happy that YPf is building confidence and doing so well are you?!
Jul 21st, 2012 - 04:53 pm 0@3 How do you make that out with Cristina having to pay back the money they got from the sale of the bond?
Jul 21st, 2012 - 06:27 pm 0The 79M USD should be in YPF's current account to be used by the business, NOT in the pockets of her mates (the close family who 'invested' their money) which was actually paid by the (no longer available) dividend.
YPF / Argie Govt are going to have to find the 79M USD just to keep YPF standing still!
The only building confidence is with her own sort. International investors are so far conspicuous by their absence AND are likely to keep away if they have any sense.
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