UPDATE 5-Argentina wows market with first bond in 15 years

lunes 18 de abril de 2016 16:49 GYT

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By Paul Kilby and Davide Scigliuzzo

NEW YORK, April 18 (IFR) - Argentina got an enthusiastic welcome back to the club of borrower nations on Monday, amassing more than US$65bn in orders for its first international bond in 15 years.

A market pariah since defaulting on its debt in 2001, the country clearly won over investors with an up to US$15bn bond whose proceeds will help pay its long-complaining creditors.

The surge of demand for the bond, which will price on Tuesday, allowed Argentina to set pricing guidance close to its optimistic funding costs for the ground-breaking deal.

"It is fantastic that Argentina is accessing the market," said John Baur, a portfolio manager at Eaton Vance. "This is certainly a very important step in the direction of improving the future of Argentina economically."

Litigant bondholders who rejected the terms of Argentina's debt restructuring and filed suit for a better payoff will have first dibs on the proceeds of the transaction.

New President Mauricio Macri wasted little time after taking office in December in agreeing terms with most of the holdouts to help smooth his country's return to the market this week.

The holdouts, led by US hedge funds Elliott Management and Aurelius Capital, will get about 75% of what they had claimed under the agreement.   Continuación...