Santander Rio preps bond sale
The Argentine bank readies two bond sales equal to $193m in the local capital markets
Santander Rio is preparing to issue ARS3bn (193m)
in a dual-tranche bond sale in Argentina’s capital
The Spanish bank’s Argentine firm
will print ARS1.5bn each in 18-month and three-year paper, a
source familiar with the transaction told
Santander Rio’s own brokerage unit
will coordinate the transaction, which is likely to price
before the end of this month, the source said.
Moody’s assigned a Ba3 global local
currency rating to the proposed bond issues, which it said were
constrained by Argentina’s operating environment.
The rating agency said the environment outweighed Santander
Rio’s "sound financial fundamentals."
It also said the bank was one of the strongest
credits in Argentina, thanks to support from its Spanish
Last September, Santander Rio raised ARS239m in
15-month notes, paying 2.25% over the Badlar rate and ARS505m
in 26-month paper at 3.15% over Badlar. Both tranches
priced at par.