At last, Argentina’s back

Author: Edward Price | Published: 20 May 2016
Brighter days ahead for the world’s former financial pariah

Argentina returned to international capital markets in late April, issuing $16.5 billion in bonds. Local and US counsel are cautiously optimistic, seeing both opportunity and challenges ahead.

The issuance follows the Argentinian Senate's approval in March of an agreement reached between the government and the country's remaining holdout bondholders.

"Argentina is back, after 14 years of being locked out of international capital markets. We are now in the financial world again," said Hugo Bruzone, partner at Bruchou Fernández Madero & Lombardi.

Significantly, appetite for the bond issue was also high, being oversubscribed five times. "That's a really good outcome," said José Maria Bazán, a partner at the same firm, and US counsel have taken note.

"That's not a record, but it is pretty big when you're speaking about $16 billion dollars. It's illustrated the appetite for emerging market sovereign...