Argentina's new government announced the issuance of US$ 1.326 billion of dollar-denominated Treasury Bills, to be directly subscribed by the central bank, according to a decree in the Official Gazette on Thursday.
The issuance of the 10-year debt comes as the country's new Peronist President Alberto Fernandez looks to pay off creditors and stave off a damaging default.
Argentina, hit by a debt crisis since last year, is facing tough restructuring negotiations with creditors including the International Monetary Fund (IMF) over around US$ 100 billion in sovereign debt which it is struggling to service.
The Treasury Bills will expire on Dec. 30 2029 with interest payable semi-annually. The rate will depend on the interest accrued by the central bank's foreign reserves and capped at the annual LIBOR rate minus one percentage point, the decree said.
A recently passed law to help revive Argentina's economy, Latin America's third largest, allows the government to issue up to US$ 4.571 billion in similar dollar denominated bills.