Argentina buys back just $3.2 mn in bond auction
Argentina's government said on Thursday it repurchased just 9.8 million pesos ($3.2 million) in peso-denominated GDP warrants in an auction aimed at bolstering debt prices by buying back up to $49 million in bonds.
By ET Bureau |
BUENOS AIRES: Argentina's government said on Thursday it repurchased just 9.8 million pesos ($3.2 million) in peso-denominated GDP warrants in an auction aimed at bolstering debt prices by buying back up to $49 million in bonds.
Finance Secretary Hernan Lorenzino said the government rejected most of the sale offers because they were above market prices. "More than 90 per cent of the offers were higher than the prices of the market," he told reporters.
The average price for the peso warrant was 8.99 pesos, the Economy Ministry said in a statement, with a cut-off price of 9.03 pesos.
Despite the small amount of bonds repurchased on Thursday, Lorenzino said the government had tentative plans to carry out a similar operation next week.
The bonds eligible for the buyback included the Boden 2012, Boden 2013, peso-denominated GDP warrants and dollar-denominated GDP warrants issued under Argentine legislation. But the government declared the auction void for all bonds apart from the peso GDP warrants.
Finance Secretary Hernan Lorenzino said the government rejected most of the sale offers because they were above market prices. "More than 90 per cent of the offers were higher than the prices of the market," he told reporters.
The average price for the peso warrant was 8.99 pesos, the Economy Ministry said in a statement, with a cut-off price of 9.03 pesos.
Despite the small amount of bonds repurchased on Thursday, Lorenzino said the government had tentative plans to carry out a similar operation next week.
The bonds eligible for the buyback included the Boden 2012, Boden 2013, peso-denominated GDP warrants and dollar-denominated GDP warrants issued under Argentine legislation. But the government declared the auction void for all bonds apart from the peso GDP warrants.
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