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Argentina Sells $150 Million in Debut Local Dollar Bond at 5.89% Yield

Strong pricing on the $150 million debut shows local demand for a short, monthly paying bond aimed at funding July dollar obligations.

Overview

  • The Treasury sold the full first tranche of the new AL27 at a 5.89% effective yield and scheduled a second-round offering of up to $100 million for Thursday.
  • Investor interest was heavy, with $868 million in bids submitted for the $150 million on offer.
  • Finance plans twice‑monthly sales of $150 million with optional $100 million follow‑ups to build as much as $2 billion before mid‑year.
  • Proceeds are earmarked for July 2026 principal payments to private bondholders, with about $2.7 billion falling due.
  • The bond, issued under Argentine law, matures on October 29, 2027 and carries a 6% nominal annual coupon paid monthly.