A large number of Argentine companies are preparing to global bond issuance, Financial managers seek to take advantage of strong demand from investors after President Javier Miley’s victory in the legislative elections.
Energy company Pampa Energia SA this Issuing new dollar bonds maturing in 2037, with youn Estimated initial performance is in the medium to high range 8%, according to a person familiar with the matter who requested anonymity. Transportadora de Gas del Sur (TGS) power distributor and drilling rig Pluspetrol SA is also holding meetings this week with fixed income investors regarding potential debt placements.
Pampa Energía’s historic issuance: 12-year Eurobond, a record for a private Argentine company
Authoritarians don’t like this
The practice of professional and critical journalism is an essential pillar of democracy. This is why it bothers those who believe they are the bearers of the truth.
After halting emissions before the election, these operations represent a revitalization of the market now that Miley’s victory has boosted confidence that pro-market reforms will stay the course in the South American country. The new offers add to those of YPF SA and Tecpetrol SA, which floated bonds just days after the electoral victory.
“We expect primary activity to gradually increase towards the end of the year, with large caps leading the way,” said Christian Vera, an analyst at KNG Securities. “Issuers of lower-tier bonds can wait until 2026,” he added, while investors evaluate the development of Miley’s economic plan.
YPF and Tecpetrol are seeking US$1,250 million after electoral support for the government
He – sheArgentine issuers are also entering a record year for global bond offerings, Amid trading recovery in emerging markets.
The additional yield required by investors to hold Argentine corporate debt compared to comparable U.S. Treasuries has fallen by more than 800 basis points since mid-September, according to data from JPMorgan Chase & Co The spread is close to its lowest level since late January.
These corporate issues could also provide Argentina urgently needed dollars. The price of the peso has risen since the legislative elections held last October 26, although it is still near the ceiling of the floating range that limits its movements.
lr
About The Author
