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Montevideo, May 22nd 2019 - 09:26 UTC

Argentina makes emerging-market record US$ 16.5b debt sale and ends litigation with bondholders

Wednesday, April 20th 2016 - 06:58 UTC
Full article 12 comments

Argentina announced on Tuesday the largest emerging market debt sale on record with a global offering of 16.5bn dollars at an average interest rate of 7.14%, well below what it had planned in March in the midst of negotiations to end litigations with holdout funds opening the way, after fifteen years, for the return to world money markets. Underwriters received 68.5bn dollars in orders for bonds, more than four times the value of the debt. Read full article

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  • Skip

    Not bad. Congrats Macri.... problem solved within first 6 months of taking office.

    Apr 20th, 2016 - 08:58 am - Link - Report abuse 0
  • zathras

    It is amazing what someone vaguely competent in charge will do.

    TMOBA really screwed things up for Argentina.

    Maybe, just maybe this is the first step, towards Argentina gaining some respect

    Apr 20th, 2016 - 10:48 am - Link - Report abuse 0
  • Think

    TWIMC
    Article is titled...:
    “Argentina makes emerging-market record US$ 16.5b debt sale and ends litigation with bondholders”

    Well.....
    Wish that was the truth... but reality is that...:
    1) The previous administration settled litigation with ~93% of the original bondholders...
    2) The current administration has just settled with ~4% of the “Hold Out” bondholders...
    3) There are still 3% (3 ,000 million U$) unsettled bonds out there..., issued without any Colective Action Clause..., in the hands of Hard Line Hold Out bondholdes that, in theory and in praxis, could start all that circus again...
    http://www.infobae.com/2016/04/18/1805198-el-peligro-los-holdouts-fantasma-preocupa-al-gobierno

    Let's wait a wee bit and see what happens with them...

    Apr 20th, 2016 - 01:11 pm - Link - Report abuse 0
  • Klingon

    So proud of my president, he is the right man for the job.
    Prat gay has a lot of respect in the financial market which helped also.

    Where are all the nay sayers now?

    Apr 20th, 2016 - 01:12 pm - Link - Report abuse 0
  • Zaphod102

    @3 “ but reality is that...”

    ...Think has a track record of inventing statistics.

    Reminder: The Panama papers contain 214,000 entities and they are not currently searchable and yet Think claimed “Not one single Yankee name on them”...

    Apr 20th, 2016 - 05:50 pm - Link - Report abuse 0
  • Marti Llazo

    @3 “ The previous administration settled litigation with ~93% of the original bondholders...”

    Actually no. That percentage was not based on “ original bondholders.” Large numbers of the bonds had be re-sold on the secondary market by the time of the restructuring haircuts. So your statement is false.

    But any percentage is meaningless if not all are obligated to a single solution. Your argument is rather like “ 90 percent of the people who took the driver licence exam passed” and using this as rationale for granting licences to all . So your statements are false and meaningless.

    Argentina's wonderfully incompetent Peronist bond negotiators of the 1990s had the opportunity to include CACs in those earlier bond sales. They deliberately elected not to do so, against competent advice. The rest is history.

    A substantial number of those remaining bondholders who still don't have payment agreements are Argentines. Argentines who foolishly believed that the Argentine government would honour their obligations. And the present Argentine government continues to cheat them.

    Junk is junk. Buying junk doesn't change that.

    http://www.bloomberg.com/news/articles/2016-04-19/argentina-unlocks-junk-bond-bonanza-as-emerging-issuers-line-up

    Apr 20th, 2016 - 06:30 pm - Link - Report abuse 0
  • Briton

    good luck to them,
    but im sure if Argentina can pull of miracles,
    we can at least survive.

    Apr 20th, 2016 - 07:04 pm - Link - Report abuse 0
  • chronic

    Tick tock.

    Apr 20th, 2016 - 09:21 pm - Link - Report abuse 0
  • Skip

    I'm glad Think showed how incompetent his last government was. It had a decade to solve this but couldn't and even defaulted again to prove it.

    But lucky he has Macri now to fix the problems that Kirchner either couldn't or created anew.

    Finally after 15 years Argentina can out this default behind them instead of having a government milk it for political capital.

    Apr 20th, 2016 - 09:30 pm - Link - Report abuse 0
  • Enrique Massot

    Big deal...“solving” the vulture problem by spraying dollars a go go...and what's more, borrowed dollars!
    All in the name of “returning to the world” which means returning to indebtedness as Argentina did so many times before. Sad.

    Apr 21st, 2016 - 11:17 pm - Link - Report abuse 0
  • Marti Llazo

    @10 “All in the name of “returning to the world” which means returning to indebtedness as Argentina did so many times before. Sad.”

    Reekie, really. Use that tiny argie brain for once. “Returning” to indebtedness ? Peronism brought you not only massive indebtedness (from which you and yours have still not recovered) in the 1990s, but Peronism also brought you the most massive sovereign default in the history of the world at that time. To understand that in argie terms, think of it as the World Cup of Default. And look how much the debt grew during the reign of CFK.

    So it's difficult, nay, not possible, to think of this month's events as “returning” to indebtedness. The debt that existed prior to this year's restructuring was considerably greater when CFK was at the throne since the restructuring reduced the debt by about 20 percent when you take into account the cost of financing the new debt.

    Besides, you didn't have a vulture problem. You had a serial-defaulter problem. And your next default is right around the corner! Isn't Argentina great or what?

    Apr 22nd, 2016 - 12:30 am - Link - Report abuse 0
  • yankeeboy

    Brazil is desperate for a deal with the EU and Argentina is an anchor around its neck.
    Stupid rgs think they've achieved something. Just like the Dutch boy with his finger in the dyke.

    We should see this roll out pretty quickly.

    Argentina has no free cash reserves left. They can only import the bare necessities. They are in Stagflation and business is grinding to a halt.

    Hyperinflation is the next hurdle.
    I wonder when it will start?

    Tick tock.

    Apr 22nd, 2016 - 10:46 am - Link - Report abuse 0

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