Argentina is back selling government bonds for the first time in 15 years having settled a long-running legal battle with investors after it defaulted on its debts in 2001.
ADVERTISEMENT
Argentina is back selling government bonds for the first time in 15 years.
The return to international borrowing marks the end of a long-running legal battle with investors after it defaulted on its debts in 2001.
There was big demand for the $65 billion worth, which enabled Argentina to cut the yield – the amount of interest – it was offering.
Order books on #Argentina's bond reach US$40bn: sources https://t.co/pzZSsmDFR4 very nice book thus far – $MVN $MDLNF #VacaMuerta $YPF $ARGT
— Maglan Capital (@MaglanCapital) 18 April 2016
The money raised will be used to overhaul Latin America’s third-largest economy and pay off the US hedge funds that had taken the country to court.
They had rejected the terms of Argentina’s debt restructuring and filed suit for a better payoff. They will get about 75 percent of what they had claimed.
Argentina’s new President Mauricio Macri had 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.
