Saturday, April 16, 2016

Argentina May Add Extra Tranche To $15 Billion Bond Issue

Argentina may add extra tranche to $15bn bond sale

Underwriters leading Argentina’s blockbuster bond sale are considering adding a new maturity to meet investor demand for shorter dated paper, according to four sources familiar with the transaction.
They may sell three-year bonds, in addition to the five, 10- and 30-year tenures already for sale, report Mary Childs, Eric Platt and Katie Martin.
The new tranche will be confirmed on Monday, the people say.
The addition of a new tranche is not expected to change the size of the offering, which would remain in the region of $15bn.
Still the introduction of a shorter dated bond underscores investors’ scepticism over the long term outlook for Argentina, which despite the reforms that have been put in place by new president Mauricio Macri, is still facing the daunting challenges of taming runaway inflation and reigniting growth.
Alfonso Prat-Gay, the country’s finance minister, boasted strong investor interest in the bonds at an event in Washington DC yesterday.
“If you haven’t done it, you might as well call your broker because the demand is awesome,” he said, according to a Bloomberg report. “Of course I’m talking my book, but I’m not, in a way, because it really is unbelievable.”
Deutsche Bank, HSBC, JPMorgan and Santander are leading the transaction.