Argentina

Argentina is set for an emphatic return to international bond markets next week after a 15 year absence. It is set to be the most exciting turnaround story in emerging markets, said investors. But the country’s capital market rebirth will depend upon triumphant deal execution, writes Oliver West.

US Circuit judge Christopher Droney removed the final obstacle in Argentina’s path to markets on Wednesday, provoking a rally in the government’s that could scarcely have been better timed.

The decision by the IDB to grant a $5bn loan to Argentina has helped buoy confidence in the country ahead of its return to international capital markets after a 15-year absence with a $12bn-$15bn bond

Argentina, for over 15 years a pariah of international capital markets, will begin meeting fixed income investors on Monday with bond investors and bankers in bullish mood about what could be the largest EM debt issue for two decades.

Lat Am syndicate bankers said on Thursday that the market remained in wait-and-see mode ahead of Argentina’s imminent jumbo bond return as another week passed without issuance.

Argentine real estate company IRSA will buy back nearly $213.5bn of dollar denominated bonds after wrapping up a tender offer that will be financed by its recent bond deal.

Fitch upgraded Argentina's local currency rating from CCC to B on Tuesday thanks to an improved policy framework, and predicted it would do the same to the government’s foreign currency rating once the country resumes timely debt service on defaulted bonds.

Argentine state oil company YPF sold $1bn of five year notes at a new issue premium close to flat on Friday as the threat of an imminent flood of supply from Argentina did nothing to quell demand.

Real estate company IRSA CP this week became the latest Argentine issuer to raise debt in the international markets as bankers continue to work behind the scenes on the sovereign’s forthcoming return to markets.

Latin American debt bankers could not hide their delight on Wednesday evening after a remarkable day in new issue activity that included two heavily oversubscribed deals from high yield issuers that traded up in the grey.

The Province of Buenos Aires is likely to provide an early test of appetite for Argentine credit on Wednesday after completing a roadshow with Citi, HSBC and JP Morgan.

Latin America’s pain is Argentina’s gain. A torrid year for bond markets and economic struggles across the region have set the stage perfectly for Argentina — so long the sick man of Latin America — to return to international bond markets with an audacious trade.