Argentina confirms 7 banks running international bond issue
(Reuters) - Argentina on Friday confirmed the names of the seven banks managing its upcoming bond issue, as it prepares to return to international credit markets for the first time in 15 years.
Deutsche Bank AG, HSBC Holdings Plc, JP Morgan Chase & Co and Banco Santander SA were awarded the top role of global coordinators for the bond sale, while BBVA, Citigroup Inc, and UBS Group AG will join as bookrunners. The news, which appeared in the government’s official gazette, confirms a report by IFR last month.
The banks will earn a commission of 0.18% of the funds raised in the bond issue.
Within days, Argentina expects to launch the sale of its first international bond issue in 15 years, raising up to US$15bn to firm up government financing and settle litigation that followed a US$100bn default in 2002.
A US court ruling on Wednesday cleared the way for Argentina to pay outstanding debts and raise new funds for those settlements, as President Mauricio Macri begins a more market-friendly era for the country, Latin America’s No. 3 economy.
In a separate announcement, the official gazette said Argentina had hired McGraw Hill Financial Inc’s Standard & Poor’s Ratings Services for the bond issue because it was the only one of the major three credit ratings agencies that would sign a contract under Argentine law.
Reporting by Maximiliano Rizzi
