Argentina's Province of La Rioja plans to initiate talks with holders of its dollar denominated 2025s after it "faced limitations" on making a coupon payment due earlier this week. The government said in statement released on Wednesday that it would make best efforts to cover the payment inside the 30-day grace period, but it will start consulting holders on ways to achieve debt sustainability. The deal was the province's debut green bond, with proceeds slated to finance the development of the Arauco Wind Farm project and other public works.
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.
Money managers including BlackRock Inc. and Fidelity Investments launched a committee with White & Case LLP as legal adviser focused on Argentina's sovereign debt. This can become one of the most powerful creditor groups since BlackRock and Fidelity both rank among the six biggest reported holders of the country’s sovereign notes.
Monarch Alternative Capital LP is spearheading a group of about 20 hedge funds advised by Dennis Hranitzky at law firm Quinn Emanuel Urquhart & Sullivan, which is getting organised ahead of debt restructuring talks with Argentina. The group is focused on notes that were part of the nation’s 2005 and 2010 debt exchanges which give a relatively small number of investors the power to veto any accord they didn’t like.
Argentina will postpone until Sept. 30 the payment of capital of $1.47 billion he AF20 Dual Bonds maturing on Thursday, the Ministry of Economy announced. The interest ($105 million) will be paid in term as well as the payment in full to individuals with bonds of up to $20 thousand ($9.3 million). After the announcement, Argentine over-the-counter bonds fell an average of 1% on Tuesday, while the country's risk index expanded 100 basis points to 1982, according to the JP Morgan Plus index.
Argentine Economy Ministry has cancelled the tender of three peso-denominated bonds scheduled for issue on Monday aimed at raising AR$96 billion to pay the Dual Bond AF20 due on Thursday. Last week, the Government had achieved 10% of the bond total value ($1.64 b) through a voluntary exchange. In addition to the maturity of the AF20 bonds, on Thursday another AR$9.6 billion of Treasury Letter (Lecaps) are due.
Argentina Ministry of Economy will bid on Monday new Treasury bonds to refinance $ 1.64 billion of the AF20 Dual Bond that expires on February 13. Both natural and legal persons may participate. The call comes after only 10% of holders of those bonds accepted a voluntary exchange for $ 164 million.
Buenos Aires province will not default and will pay this week $250 million capital plus $27 million interest of bond BP21 originally due on Jan. 26, Governor Axel Kicillof said. The announcement came after failure of negotiations for getting agreement with 75% of bondholder over a delay until May 1, being Fidelity Investments the main group opposed to the deal. The province will use own resources to make payments.
The Government of the province of Buenos Aires proposed today to pay 30% of the bond capital due on January 26 ($ 75 million) and defer the remaining 70% to May 1. Bondholders will also receive the interest corresponding to that postponed capital, if at least 75% of them accept the terms before this Tuesday.
The government of the province of Buenos Aires proposed holders of BP21 bonds for $250 million matured on January 26, the advance payment of interest from January 27 to May 1, if they accept to defer until that date the payment of capital. If bondholders accept the offer by Friday, they will receive next week $28.70 for every $1,000 of deferred capital.