June 30, 2017 / 1:47 PM / 5 months ago

Argentina says increases Bonar 2014 dollar bond to $4 billion

BUENOS AIRES, June 30 (Reuters) - Argentina has increased its dollar-denominated Bonar 2014 sovereign bond to $4 billion, the government said in its official gazette on Friday morning, as President Mauricio Macri increases public spending ahead of a crucial mid-term election.

The bond was originally sold in 2014 for $3.25 billion with a 8.75 percent coupon. In 2014 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.

He promised to bring Argentina back into the global financial system after eight years of heavy intervention in the economy under his predecessor, Cristina Fernandez, a free-spending populist who had an antagonistic relationship with international investors.

Argentina offered $2.75 billion of a 100-year bond this month that sold out quickly, and the Macri administration increased its overall 2017 foreign currency bond issuance target to $12.75 billion.

But the promised wave of bricks-and-mortar investment has been slow to come and the economy remains sluggish, weighed down by inflation that, while slowing, remains above 20 percent.

Macri has increased welfare and public works spending ahead of the mid-term elections four months from now. That outcome will determine the power he has to get a more market-friendly reform program through Congress during the second half of his term. The success of that program will influence his chances of being re-elected in 2019. (Reporting by Hugh Bronstein, Hernan Nessi and Walter Bianchi; Editing by Jeffrey Benkoe)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below