JPMorgan Chase & Co. (JPM) agreed to buy Argentine government bonds from oil producer Repsol SA (REP) for $2 billion, bringing its purchases of the country’s securities to about $5 billion in less than a week.
JPMorgan agreed to purchase Argentine bonds due in 2015, 2017 and 2033, Madrid-based Repsol said in a filing. The oil company said last week that it agreed to sell Argentine government bonds due in 2024 to JPMorgan for $2.8 billion.
The biggest U.S. bank is facilitating Repsol’s efforts to reduce ties with the Argentine government, which nationalized its 51 percent stake in local oil producer YPF SA in April 2012. Under an agreement Repsol with the government reached earlier this year, Repsol last week received $5.32 billion of bonds as compensation for the seizure.
The transaction disclosed today is expected to be completed by the end of this week, according to the filing. Repsol said it sold all of its securities due in 2017 and 2033 and all but $117 million of those due in 2015.
Repsol previously had said it received $500 million of the 2017 securities from Argentina, $1.25 billion of the 2033 bonds and $317 million of those due in 2015.
JPMorgan, which has already sold some of the Argentine bonds received from the first purchase, is wagering that its remaining holdings will gain in value, a person with direct knowledge of the bank’s strategy said earlier this week.
To contact the editors responsible for this story: Brendan Walsh at email@example.com Bradley Keoun, Robert Jameson