Strong Demand and High Cost for the First International Debt Issuance of the Milei Era

First Analyses of the Bonte 2030

Date:

CC-BY-SA-2.0, FlickrBuenos Aires, Puerto Madero

Author: Magdalena Martínez

This is the first issuance of local currency bonds under Argentine law aimed at foreign investors in seven years. The offering saw strong demand, with bids totaling $1.694 billion from 146 investors.

The issuance achieved the objective set by Argentine authorities: to increase reserves without intervening in the exchange rate.

Juan Salerno, Vinci Compass: "It makes sense that investors would demand a premium, given that this is the first significant issuance in the market, in local currency, and with a long duration."

Paula Bujía, Buda Partners: "If Argentina moves forward with economic normalization and begins to accumulate reserves, the Bonte 2030 could follow a similar path of spread compression and pave the way for less burdensome issuances."