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Argentina Raises US$1 Billion in Dollar Bond Sale at 9.26% to Test Market Reentry

Proceeds bolster coverage of hefty January payments, with demand led by local buyers under temporary central bank easing.

Overview

  • The Treasury sold a locally governed Bonar 2029 with a 6.5% coupon, taking in US$1.0 billion after US$1.4 billion in offers from about 2,693 investors.
  • Pricing cleared at a 9.26% yield, higher than many expected, and dollar bonds traded slightly lower following the auction.
  • The government plans to apply the funds toward January obligations of roughly US$4.2–4.3 billion alongside about US$700 million expected from hydroelectric concession privatizations, covering near 40% of those maturities.
  • Most demand came from domestic investors and banks, supported by temporary Central Bank measures that eased access to dollars for subscriptions.
  • Economists called the placement a notable step yet cautioned that high risk premiums persist and clarity on reserve accumulation and the exchange-rate framework remains crucial.