Argentina's first local bond issue since July default fully subscribed
BUENOS AIRES, Sept 25 (Reuters) - Argentina on Thursday sold two-year bonds worth 10 billion pesos ($1.19 billion), the economy ministry said, in a strongly bid auction that was its first in the domestic market since the South American country defaulted on its debt in July.
The government will pay a yield of the benchmark Badlar rate - the interest rate that private banks pay on wholesale deposits of more than 1 million peso - plus 200 basis points.
The Badlar rate in pesos as of Tuesday was 20.125 percent, according to the central bank.
The ministry said it received bids worth a total 10.61 billion pesos after offering notes worth 10 billion.
Argentina has been locked out of international capital markets since it defaulted on a record $100 billion of debt in 2002.
It then issued bond swaps in 2005 and 2010 and had been servicing the debt until it failed to complete a payment in July because of a legal battle with U.S. investors who spurned the restructuring.
The government has relied heavily on the central bank to finance its spending and pay for energy imports. (Reporting by Richard Lough and Nicolas Misculin; editing by Andrew Hay)
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