Argentina Corporate Debt: Reapertura?
Fresh borrowing by Argentine corporates and sub-sovereigns dovetails with hopes of the sovereign regaining access. A corporate debt boom is unlikely.
by Ben Miller
Argentine entities are back on the credit map with a whimper,
not a bang. The sovereign limped closer to access by closing a
$12.1 billion exchange with holdout investors in June, but
provinces are already issuing without its support.
"We were ready to issue
even last year," Víctor Cisterna, economy minister of
Argentinas Chubut province says of the $150 million bond
the government sold in July, backed by oil royalties. "I
dont think the federal government exchange helped us, nor
did it hurt us."
Getting a majority of holdouts to agree to Argentinas
stingy swap terms was meant to end a decade of isolation from
international borrowing and boost access for corporates and
sub-sovereigns. It could one day revive the governments
access to international bond markets, setting valuable
benchmarks for corporates and sub-sovereigns. But the
government wants better pricing and is...
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