Santander Rio preps bond sale

Santander Rio preps bond sale

Argentina Bonds

Santander Rio is preparing to issue ARS3bn (193m) in a dual-tranche bond sale in Argentina’s capital markets.

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 LatinFinance.

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 parent.

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.