Argentina raises US$1 billion in peso-denominated bond issuance

Argentina's government said Wednesday it had raised US$1 billion in a peso-denominated bond issuance, signalling confidence by international investors in the economic project of budget-slashing President Javier Milei.

Dubbed "BONTE," the treasury bond could be purchased in dollars at a fixed five-year rate of 29.5 percent.

It was issued to boost foreign reserves and meet International Monetary Fund loan requirements.

"Excellent news. Being able to refinance the capital deadlines is fundamental!" Economy Minister Luis Caputo said on X. 

On Monday, when the instrument was announced, Caputo maintained that it was not new debt, but rather a refinancing.

It was the first such bond issuance in Argentina in nine years.

The instrument includes a 2027 put option, which forces the bond issuer to repurchase it on that specific date if demanded.

Last month, Argentina received an initial US$12 billion from a new US$20-billion loan agreed by the International Monetary Fund (IMF).

The injection from the IMF and others is crucial for replenishing the country's meagre foreign reserves, reviving growth and tackling inflation – a key focus for self-styled "anarcho-capitalist" Milei.

– TIMES/AFP