Argentine bank issues in pesos

The Argentine banking entity Banco Macro has placed a peso-denominated debt paper, a financing alternative on the increase. High foreign demand was observed and this is the first issue with a 5-year term and an annual fixed rate of 10.75 per cent. Interests are paid every six months and capital at maturity. Bank placing this bond is Citibank for $100 millions.

North American, European and Asian investors have expressed their interest in this bond by placing $430-million purchase orders. "The structure is similar to issues carried out with Tarjeta Naranja and with one of the two tranches of Alto Palermo," Kony Strazzolini, Citibank Corporate Finance manager stated. "Ten road shows have been held in London, Geneva, New York and other cities," he added. This paper pays its dollar-holders at the exchange rate of the respective date. Some other banks, apart from Macro, may be about to issue in pesos. In the short term, Tarjeta Cuyana (from the banking entity Banco Galicia) will be the next one. However, what's more significant in this sense is Argentine government's debut in this market, announcing issue next week.