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6h ago

Argentina Launches Bonar 2029N to Test Market Return and Fund January Obligations

The four-year, local-law dollar bond with a 6.5% coupon is meant to raise hard currency for a roughly $4.2 billion early‑January payment.

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Overview

  • The Treasury announced a BONAR 2029N sale in dollars that repays principal at maturity, with placement terms and investor mix to be defined in the upcoming auction.
  • Country risk has tightened from above 1,400 to below roughly 650, with sovereign yields now near 9% to 11% after the post‑election rally.
  • Analysts say the new bond targets a medium‑duration window to stretch the debt profile and ease short‑term cash needs compared with AL29, GD29, AL30 and GD30.
  • International demand funneled via the CCL could lower the effective funding cost toward about 7%, while a domestically funded placement would draw on existing dollar liquidity and limit reserve gains.
  • Finance officials indicate proceeds will primarily cancel nearly $1.2 billion in AL29 and AL30 capital as part of the January dues, with repo and swap lines cited as supplementary backstops.