Argentina lines up US$5.5bn bond for Repsol

viernes 21 de febrero de 2014 09:08 GYT

* Argentina to issue bonds to Repsol under local law

* Tap of existing dollar bonds, plus 10 year amortiser

* No issuance before April, after AGM and Congress approval

By Alex Chambers

LONDON, Feb 21 (IFR) - Repsol is close to completing negotiations with Argentina which will result in the sovereign issuing a US$5.5bn nominal bond as part of a US$5bn settlement over the 2012 expropriation of the Spanish oil firm's stake in YPF.

In an exclusive Reuters report it emerged that Argentina and Repsol will sign a definitive settlement over the seizure of YPF within days, a source involved in the talks said on Thursday, ending a bitter two-year bilateral dispute.

On Friday, Repsol said it would book a 1.28bn impairment in 2013 results after writing down shares in YPF and revaluing its remaining stake at US$5bn.

The agreement of a bond settlement to Repsol still needs approval from Argentina's Congress as well as Repsol's board of directors and shareholders, a source involved in the talks told Reuters. The board is due to discuss the matter on Tuesday, and sources said an AGM could be scheduled by the end of March.

No issuance will happen before then.   Continuación...