After the incursions carried out by the People’s Protection Units and Techpetrol in the last week of October, Today it is Pampa Energía’s turn to testify that the global financial market has reopened to Argentine companies.This occurred after this type of placement stopped in recent months, amid the uncertainty resulting from the electoral process.
The company is one of the largest energy companies in the country and is distinguished by its integrated work in the field of electricity and gas generation and distribution. 12-year fundraising of $450 million, Issuing a bond that pays the holder an annual interest coupon of 7.75% with a discount rate that gives rise to a yield of 8.125%.
To take this into consideration, This rate equates to a risk of just under 400 basis points. This is a fact that excites market analysts and leads them to believe that the possibility of Argentina returning to the debt market to face the next payment without relying on foreign aid is approaching.
The performance was possible because Pampa Energía received purchase offers for its title worth more than US$1.5 billion.He pointed out in a statement, “With a request to include important international investment funds, which reached a record period of 12 years.”
“It is an unprecedented time for a private Argentine companyThis reflects investors’ confidence in the financial strength and growth plan of Pampa.
The company explained that it will allocate the funds it obtained in the long term for the early repayment of the negotiable 2026 commitment.totaling US$120 million which had a 9.5% coupon. This means undertaking financial re-engineering, while taking advantage of the market opportunity to reduce the cost of debt.
next to, We will use the rest to finance the development of Rincon de Aranda, The unconventional oil project that the company is developing in Vaca Muerta.
The offering was carried out by JPMorgan, Deutsche, Citi and Santander globally and locally by Plans Capital, Galicia and Santander. It benefits from the reopened Argentine risk appetite, as evidenced by the significant decline in risk taking in the country, following the victory of President Javier Miley in the recent legislative elections.
This is what YPF and Tecpetrol already demonstrated a few days ago by offering to reopen bonds issued and already traded in the market to take US$500 million and US$750 million, respectively. After receiving purchase offers worth 3.5 billion US dollars.
This has prompted other companies (including Transportadora de Gas del Sur and Pluspetrol, among others) to begin testing the market to implement new long-term placements that would allow them to reduce the cost of their debt and finance the investments they have in the pipeline.
The entry of the dollar through financial means is considered one of the factors that changed the local market’s view of the future of the dollarEspecially since it comes when contributions through commercial channels tend to decline.
Proof of this is the recent survey of market expectations (REM) actually shows the banknote closing the year within the floating range, The continuity of which was in doubt a few weeks ago, for the first time in six months.
About The Author
