US EditionArgentina raises $1bn in international bond auction in boost for Javier Milei
- Argentina raised $1 billion through a peso-denominated bond called BONTE on Monday in Buenos Aires to support President Javier Milei's economic plan.
- This issuance followed Milei's election in December 2023 and aims to meet IMF loan conditions amid efforts to tackle inflation and revive growth.
- The BONTE bond, Argentina’s first issuance of its kind in nearly a decade, offers investors a dollar-denominated yield set at 29.5 percent over five years and includes a put option for 2027.
- Economy Minister Luis Caputo described the bond as refinancing rather than new debt, and investors' participation signals confidence in Milei's budget-slashing reforms.
- This bond boost, alongside a recent $12 billion IMF loan tranche, is crucial for replenishing foreign reserves and supports Milei's rapid and radical economic changes.
16 Articles
16 Articles
Argentina raises $1B in peso-denominated bond issuance
BUENOS AIRES, Argentina — Argentina’s government said Wednesday it had raised $1 billion in a peso-denominated bond issuance, signaling confidence by international investors in the economic project of budget-slashing President Javier Milei. Dubbed “BONTE,” the treasury bond could be purchased in dollars at a fixed five-year rate of 29.5 percent. It was issued to boost
Latin America's second-largest economy has issued its first dollar bond in seven years with a coupon of nearly 30%, which still shows some caution among investors.
If the loan of US$ 1 billion that the government of Javier Milei obtained on Wednesday from international investors is the prelude to a total return of Argentina to the credit markets is to be seen. The rate of almost 30% in pesos and the bailout insurance by May 2027 that the economic team must have offered did not generate at least so far a shock of confidence at least as reflected in the main financial variables.
The international analyst, Gustavo Segre, explained why prices in Argentina exceed those in Brazil, Chile and even China, and warned that the phenomenon could be maintained throughout 2024. Read more
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