Argentina's YPF sells one billion dollars in 10-year bonds at 8.75% rate

Thursday, April 3rd 2014 - 07:25 UTC

Full article 11 comments

Argentina’s nationalized oil and gas producer, YPF, sold 1 billion dollars in a bond sale on Tuesday, the company said in a statement. The 10-year bonds will pay 8.75% interest and were five times oversubscribed, YPF said. The U.S. dollar-denominated securities were issued under Argentine law and was considered a great success by the company. Read full article

Comments

Disclaimer & comment rules

Anglotino
More debt.

Stevie will have a conniption fit.
Apr 03rd, 2014 - 08:39 am - Link - Report abuse 0
-+
yankeeboy
At credit card interest rates I don't see how this could be deemed successful.
Argentina is such a bizarre place.
Apr 03rd, 2014 - 01:01 pm - Link - Report abuse 0
-+
golfcronie
Is the rate quoted after 10yrs or yearly, if it after 10 yrs then whoever took these on are in for a loss. Think about it, 10 years of 35% inflation per annum, be lucky to get your stake back.
Apr 03rd, 2014 - 02:30 pm - Link - Report abuse 0
-+
ChrisR
@ 3 golfcronie
Interest should be paid annually unless the terms say otherwise, but even at that you would not recover your money AND that’s assuming The Dark Country would pay on time, if at all.

The “investors” must be desperate or drug lords to get into bed with this bunch of crooks.
Apr 03rd, 2014 - 07:25 pm - Link - Report abuse 0
-+
Condorito
You have to think medium term. Argentina works on 10 year boom / bust cycles so five years from now these bonds could be worth something.

However, I think Peru will have its shale gas flowing before Argentina does.
Apr 03rd, 2014 - 07:43 pm - Link - Report abuse 0
-+
Anglotino
Yeah I think Peru will suck a lot of investment that would have usually gone to Argentina.

It is booming and there is great scope or integration with its neighbours through the Pacific Alliance, not to mention it has a good quick line of transit straight to Asia or up to the US.
Apr 03rd, 2014 - 09:13 pm - Link - Report abuse 0
-+
ChrisR
Ah yes:
“Argentina, always the ugly sister and never the bride” or have I mixed metaphors? :o)
Apr 03rd, 2014 - 09:19 pm - Link - Report abuse 0
-+
St.John
Of course the sale was a great success - all the bonds were bought by a front for the Argentine National bank, which thus lost 1 billion US dollars.
Apr 04th, 2014 - 05:57 am - Link - Report abuse 0
-+
golfcronie
Rockhopper oil close to securing a rig for the drilling in the FALKLANDS in 2014/2015
Apr 04th, 2014 - 12:33 pm - Link - Report abuse 0
-+
RICO
Better spend the money wisely almost 9% is a lot for US denominated debt it is 35 times the fed rate of 0.25%.

I wonder are Argentina anticipating a dollar collapse or some kind of default which means the debt will not be repaid.

Of course if the bonds were issued in Pesos you would be looking at 50%+ interest.
Apr 04th, 2014 - 01:53 pm - Link - Report abuse 0
-+
reality check
I know nothing about bonds or finance, but I do know that if someone fucks me over once, he won't get the chance to do it again.

Are people with money really that gullible?
Apr 04th, 2014 - 09:03 pm - Link - Report abuse 0
-+

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!