BUENOS AIRES, Aug 18 (Reuters) - Argentina tripled the amount of debt it was seeking to sell at Tuesday’s auction of new dollar-denominated bonds that will be paid back in pesos in 2017, a notice in the official gazette said.
The economy ministry will now sell up to $1.5 billion worth of the Bonad 17 bonds, which will be governed by Argentine law. Payment of the Bonad 17s will be made in pesos at the official exchange rate.
Outgoing President Cristina Fernandez’s access to global credit markets has been hampered by a festering default, forcing the government to sell debt in the local market. Foreign reserves have dwindled in past years.
Fernandez has ramped up public spending this year in an attempt to bolster the country’s anemic growth ahead of presidential elections on October 25.
The new paper will accrue an annual interest of 0.75 percent which will be paid on February 22 and August 22 of each year until maturity, the gazette notice said.
The Bonad 17 matures in February 2017. (Reporting by Richard Lough; Editing by Alden Bentley)