DEAL: Argentina's century bond

Author: John Crabb | Published: 18 Jul 2017

The Republic of Argentina has issued $2.75 billion of 100-year notes, one of only a small handful of sovereigns to go down this route. Previous issuances have come from countries including Ireland, Mexico, the Philippines, China and the UK.

The Latin American nation is the first among the group to do so with a junk-rating – the notes carry a coupon of 7.125%. Mexico’s own bonds, in 2011, yielded 5.96%, while the Irish debt, in 2016, had a coupon of 2.35%. 

The issuance comes less than 18 months after the country settled a $95 billion sovereign debt dispute, simultaneously issuing $16.5 billion in bonds in what was heralded as a triumphant return to the international capital markets following a 14-year absence.

Jose Maria Bazan, partner at Bruchou Fernández Madero & Lombardi who...