UPDATE 3-Argentina finally returns to int'l bond market

lunes 18 de abril de 2016 10:46 GYT

(UPDATES with order books)

By Paul Kilby and Davide Scigliuzzo

NEW YORK, April 18 (IFR) - Argentina returned to the international bond markets for the first time in 15 years on Monday as it winds down a long-running battle with investors following its 2001 default.

Argentina announced a US$10bn-$15bn bond, whose proceeds will help pay off the holders of its defaulted bonds who had rejected the payment terms of the country's debt restructuring.

New President Mauricio Macri wasted little time after taking office in December in agreeing terms with most of the holdouts, led by US hedge funds Elliott Management and Aurelius Capital.

That cleared the way to start wrapping up the messy litigation in the US courts and come back to the bond market, where the new offering is expected to price on Tuesday.

Argentina set initial price thoughts of 6.75% area on a three-year bond and 8% area on a 10-year. A five-year is offered at 50bp below the 10-year yield, and a 30-year at 85bp over it.

"Some clients are a little bit skeptical," Jorge Piedrahita, CEO of broker Torino Capital, told IFR. "They don't think is that generous."

Deutsche Bank, HSBC, JP Morgan and Santander are acting as global coordinators on the bond sale, while BBVA, Citigroup and UBS are joint bookrunners.   Continuación...