A bond sale planned for Wednesday may be a small step for Argentina’s government at home, but a major move toward a potential return to international debt markets.
Officials and analysts view the deal as a dry run for the country’s eventual resumption of overseas borrowing. The government plans to auction a so-called Bonar under local law, the Treasury’s first dollar bond in five years, and the size of foreign orders will be a key indicator for Javier Milei’s government as it moves toward issuing globally.
Few doubt the deal will draw solid demand from local buyers, as seen in recent corporate and provincial placements. The government has already taken steps to both prevent arbitrage on the sale and to stabilise the currency.
But there’s also “a lot of interest from foreign investors and this is meant to capture their demand,” said Matias Tamburini, chief executive officer of Balanz Capital Valores, a brokerage firm.
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