(New throughout, adds details of repo deal, comment from ministry source, background on previous deal)
BUENOS AIRES, Aug 4 (Reuters) - Argentina increased its dollar-denominated Bonar 2024 sovereign bond issuance by $4 billion on Friday, a portion of which will be used for a repurchase deal with five banks, the second time the government has increased the bond in a little over a month.
President Mauricio Macri's government will sell $2.7 billion of the bond to Nomura Securities Internacional Inc, Banco Bilbao Vizcaya Argentaria, S.A., BBVA Banco Francés S.A., HSBC Bank USA National Association and Citibank NA London Branch, according to a the country's official Gazette.
"We authorized $4 billion, but we know it is a little bit more than what we're going to use, and we only use what we need," said a Finance Ministry source, who declined to be named because he was not authorized to speak to the press.
The source added that the central bank's reserves would increase by $2.7 billion due to the deal.
The bond was originally sold in 2014 for $3.25 billion with a 8.75 percent coupon. At the time the country was locked out of the international capital markets due to a debt default that was resolved last year, soon after Macri came to power in late 2015.
The government had previously authorized an increase in the Bonar 2024 bond issuance by $4 billion in late June, and a finance ministry spokeswoman said Friday's announcement was new. Of the previous increase in issuance, $1.5 billion was used for a repurchase deal. (Reporting by Hernan Nessi and Caroline Stauffer, additional reporting by Walter Bianchi and Jorge Otaola; writing by Luc Cohen; editing by Bernadette Baum and David Gregorio)