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UPDATE 1-Argentina closes 2017 foreign bond program with 2.75 bln euro sale
November 2, 2017 / 9:21 PM / 20 days ago

UPDATE 1-Argentina closes 2017 foreign bond program with 2.75 bln euro sale

(Recasts with more details, adds background on Argentine government finance)

BUENOS AIRES, Nov 2 (Reuters) - Argentina finalized its foreign bond sale plan for 2017 on Thursday, selling 2.75 billion euros ($3.21 billion) in three bonds in an offering that was more than four times oversubscribed, the Finance Ministry said in a statement.

South America’s No. 2 economy sold 1 billion euros in 5-year bonds at a 3.375 percent interest rate, 1 billion euros in 10-year bonds at 5.25 percent, and 750 million euros in 30-year bonds at a 6.25 percent, as Thomson Reuters publication IFR reported earlier.

That marked the first 30-year euro bond sale in Argentina’s history, the ministry said.

The country received 11.5 billion euros in orders for the bonds, as investors flock to high-interest instruments in an otherwise low-yielding fixed income market. The sale was Argentina’s first foreign bond sale since its surprise $2.75 billion 100-year bond in June.

Thursday’s issue brought the total amount of bonds Argentina has sold on international markets in 2017 to around $13.4 billion, higher than the $12.75 billion in issuance Finance Minister Luis Caputo said in June that the country was targeting for the year.

That itself was up from the $10-billion target Argentina had set earlier in the year, an increase Caputo attributed at the time to the peso currency’s unexpected strength in foreign exchange markets.

Argentina needs to cover a primary fiscal deficit seen at 4.2 percent of gross domestic product (GDP) this year. Next year, the country plans to slash that shortfall to 3.2 percent of GDP but needs to cover a total financial deficit of 678.870 billion ($38.79 billion), or 5.5 percent of GDP. ($1 = 0.8578 euros) ($1 = 17.5000 Argentine pesos) (Reporting by Luc Cohen; Editing by Dan Grebler and Sandra Maler)

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