Nov. 6 (Bloomberg) -- Argentina’s expansion of its program for 7 percent dollar-denominated bonds due in 2017 to $2.6 billion is aimed at selling the debt directly to local institutional investors, an Economy Ministry official said.

The plan is not to sell them to the market, the official said in an e-mail on the condition he not be identified in accordance with ministry policy. The bonds will be sold to local institutional investors, including banks, that are seeking to extend investment portfolio maturities, the official said.

The government published a resolution in today’s official gazette that expanded the 2017 bond program.

Argentina has sold $2.07 billion worth of the bond, which is also known as the Bonar X.

To contact the reporter on this story: Drew Benson in Buenos Aires at abenson9@bloomberg.net

Last Updated: November 6, 2009 15:31 EST