By Katia Porzecanski
Argentina’s first dollar-linked bond sale in at least a decade may help shore up the peso in the nation’s informal currency markets, according to Goldman Sachs Group Inc.
The Economy Ministry said in a statement Oct. 17 that the government will take offers for as much as $1 billion of two-year securities Oct. 23-28. The bonds will be denominated in dollars and pay holders in pesos at the official exchange rate, with annual interest of 1.75 percent. Argentina hasn’t sold debt in international markets since defaulting on a record $95 billion in 2001.
The securities, which will be sold locally, offer protection against a peso devaluation and are being offered as the government tightens controls on informal currency markets. Mauro Roca, a Goldman Sachs economist, said today in a research note to clients that the sale will help strengthen the peso in the so-called ... Read More