UPDATE 1-Argentina province retaps 2015 bond at lower yield

* Reopens bond first sold two weeks ago

* Prices paper at a premium amid surging debt prices
(Adds details, background)

BUENOS AIRES, Oct 13 (BestGrowthStock) – Argentina’s largest
province, Buenos Aires, reopened a dollar-denominated 2015 bond
for $250 million on Wednesday, at a yield of 11.50 percent,
according to IFR, a Thomson Reuters service,

Just two weeks ago, the province sold $550 million worth of
the new bonds at a 12.0 percent yield. But with Argentine debt
yields dropping as investors seek high returns amid low global
interest rates, the province was able to sell the new paper at
a premium. For more see [ID:nN13262387].

The September bond sale was the province’s first global
debt issue in three years. The district, which is home to about
one-third of Argentina’s population, has authorization to issue
another $300 million by year’s end.

The five-year bond carries a coupon of 11.75 percent and
priced on Wednesday at 100.913, said IFR.

“The borrower had originally targeted $200 million, but
clearly saw room to grow after books breached the $1 billion
mark earlier this morning,” the IFR story said.

Deutsche Bank (DBKGn.DE: ) and Bank of America-Merrill Lynch
(BAC.N: ) were the lead managers on both deals.

Buenos Aires is the third province to have sold bonds since
Argentina’s national government concluded a $12.2 billion debt
swap in June aimed at cleaning up the remnants of a massive
$100 billion default from 2002.

Part of the reason for the swap was to lower borrowing
costs for the provinces, many of which have budget deficits.
(Writing by Hilary Burke; Editing by James Dalgleish)

UPDATE 1-Argentina province retaps 2015 bond at lower yield