The US Export-Import Bank (US Exim) has backed the export of oil and gas services equipment from the United States to Argentina with seven-year guarantee. The guarantee covers an $18.4mn loan from HSBC to A-Evangelista S.A. (AESA), a wholly-owned subsidiary of energy company YPF. The Argentinian engineering firm will use the financing to buy oil and gas services equipment from three small US-based businesses.
As Argentina descends into a hellscape for creditors, investors are finding opportunities in some provincial and municipal notes selling at small discounts to their face value and spitting out rich coupons in a world of near-zero yields. Local governments owe $1.5 billion in debt obligations in 2020. “But the financial woes forcing the federal government to seek a restructuring don’t apply equally to all the country’s issuers,” Oren Barack, the managing director of fixed income at New York-based AGP Alliance Global Partners says.
U.S. soybean futures on Wednesday extended a rebound from a sharp drop earlier this week after the Argentine Ministry of Agriculture suspended the registration of agricultural exports until further notice. The movement was seen as foreshadowing a jump from 30% to 33% in grain export tariffs that Alberto Fernández’s government might announce this weekend, thus shifting exports to the United States.
French oil giant Total is interested in partnering with Russian companies to jointly develop petrochemical projects in southern Argentina, Sergey Derkach, the trade representative of Russia in Argentina said. Earlier this month he met with the management of Total Austral, an Argentina-based subsidiary in the southern Argentine province of Tierra del Fuego where local authorities are currently assessing the number of projects in the oil and gas sector, including expanding natural gas production and creating a petrochemical cluster for making fertilisers.
Argentina imports of textile products in 2019 fell 20.9% in dollars and 10.3% in kilograms compared to the previous year, according to a report by the Pro Tejer Foundation. China concentrated 40.8% of purchases in dollars and 41% in tons, followed by Brazil (18.3% in dollars and 17.6% in tons); India (6.3% in dollars and 12.7% in tons); Indonesia (2.7% in dollars and 4.9% in tons); and Korea (1.4% in dollars and 2.6% in tons). Argentine exports of textile products decreased 40.1% in tons and 25.8% in dollars.
UK ambassador to Buenos Aires Mark Kent said his country wants “to be a partner” of Argentina in such areas as the development of railways. His comments followed a meeting of a British trade mission with the head of the State Railway Infrastructure Administration (ADIFSE), Ricardo Lissalde, in which they presented projects for railway development, including a train to Vaca Muerta oil shale.
Argentine beef exports to its top buyer China fell almost a third in January compared to previous month, due to buyers bargaining for lower price, and the effects of a coronavirus outbreak, according to Mario Ravettino, head of the consortium of Argentine meat exporters (ABC). The estimated January figure of 31,500 tonnes would be the lowest in nine months. Soaring demand from China last year saw sales of Argentine frozen boneless beef double to 408,500 tonnes, worth around $2 billion.
Loma Blanca 2 project, part of the total 250MW four-part Loma Blanca complex in Argentina’s Chubut province, is now running and connected to the grid, said Xinjiang Goldwind Science & Technology (HKG:2208). The Chinese wind turbine company began work on Loma Blanca and the 98MW Miramar project, Buenos Aires province, in 2018 with compatriot EPC group Power China after acquiring the wind farms under China’s ‘Belt and Road’ global infrastructure strategy.
Argentine bond prices fell 1.3% on Thursday after an IMF technical mission essentially gave the government a green light to restructure about $100 billion in bonds and loans, including $44 billion owed to the IMF. Argentine bond prices are down 4.8% so far this year. Country risk spreads 11EMJ stood 82 basis points wider at 2,117 over safe-haven U.S. Treasury paper, indicating an increase in the perceived likelihood of default.
Argentina-based e-commerce platform MercadoLibre will invest $420 million this year in Mexico, its fastest-growing market, up 46% from 2019. The company will focus its spending in Mexico on logistics, financial services and expanding its brands and products, said MercadoLibre’s Mexico chief executive, David Geisen. MercadoLibre’s net revenue in Mexico jumped 152% last year to $275 million