UPDATE 2-Bonar 2024s slip as Argentina tries local sale
(Adds details about Deutsche Bank)
By Paul Kilby
NEW YORK, April 21 (IFR) - Argentina's Bonar 8.75% 2024s slipped close to a point Tuesday as the government announced a local sale of the bond to try to get round US restrictions on its market access.
The sale of up to US$500m - which starts today through a local auction without banks - is the sovereign's latest attempt to regain a foothold in the capital markets.
"This will be a test on whether this is a market Argentina can issue in and whether there is any legal backlash," said Siobhan Morden, head of Latin America strategy at Jefferies.
The Bonar 2024s extended recent losses after the announcement, sinking to around 105.00 in anticipation of more supply - more than two points down since the 107.85 level seen last week.
Argentina was forced to shelve a US$2bn-plus sale of the Bonar 2024s in March when bookrunners Deutsche Bank and JP Morgan backed away from the deal.
Deutsche Bank, along with other intermediaries, is also acting as an agent on this occasion, taking any enquiries from clients interested in buying the paper, said a person familiar with the matter.
They retreated after a US judge ordered them to produce documents and witnesses on the deal, in yet another standoff between the sovereign and US Judge Thomas Griesa. Continuación...