Argentina May Sell More Dollar Bonds This Year, Kicillof Says

Argentina’s Economy Minister Axel Kicillof said the government is considering selling more dollar bonds this year amid strong investor demand for the nation’s debt.

“I have seen the spectacular response of the market when we went with our new bonds so I think that this is a possibility,” Kicillof said in an interview in St. Petersburg, Russia, when asked about issuing more dollar debt in 2015.

The 43-year-old minister said any new debt should be used to finance development projects like infrastructure and that Argentina wants to have capital market access to solve “real economic problems.”

In April, Argentina sold an additional $1.4 billion of its 2024 bonds, triple the amount originally offered. The sale was done in the local market as a legal dispute with holders of defaulted bonds from Argentina’s 2001 economic crisis is preventing the country from raising funds in the international market. The government has $6.26 billion of bonds coming due in October and an attempt to swap part of those notes for longer dated maturities in December was largely unsuccessful.

The so-called Bonar 2024 bonds fell 1.2 cent to 94.65 cents on the dollar at 2:24 p.m. in Buenos Aires, according to data compiled by Bloomberg. The yield rose 0.22 percentage point to 9.86 percent, the highest since Dec. 17.

Kicillof said Argentina is ready to resume talks with holdout creditors led by billionaire Paul Singer’s NML Capital as long as the litigating hedge funds don’t insist on getting “scandalous returns.” The last time Argentina met with holders of defaulted debt who were awarded full payment in a U.S. court was last July, he said.

“It’s not fair to bondholders that entered in our restructuring processes,” Kicillof said. “We want a solution for 100 percent of the bondholders. We give them messages that we are ready to discuss, but in rational terms. Without extortion.”

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