Argentina confirms seven banks running international bond issue

Reuters with

Argentina confirmed the seven banks managing its upcoming bond issue in the government's official gazette on Friday as it prepares to return to international credit markets for the first time in 15 years.

Deutsche Bank, HSBC Holdings, JPMorgan Chase & Co and Banco Santander were awarded the top role of global coordinators for the bond sale, while BBVA, Citigroup, and UBS Group will join as bookrunners. The news confirms a report by IFR last month.

Argentina's President Mauricio Macri (R) and President Barack Obama leave after posing at the Casa Rosada government house in Buenos Aires, March 23, 2016.
David Fernandez | Pool | Reuters

Argentina plans within days to launch the sale of its first international bond issue in 15 years, raising up to $15 billion to ease government financing and settle litigation that followed a $100 billion default in 2002.

The minimum amount Argentina will issue will be $8.5 billion, because that is the amount owed to so-called holdout creditors, Cecely Hugh of Aberdeen Asset Management told CNBC.

Hugh said the bookrunners had called for an investor call on Monday and might issue guidance pricing before or after.

The bookrunners are indicating yields of 7 percent, 8 percent and 9 percent for the 5-year notes, 10-year notes and 30-year bonds respectively, she added.

A U.S. court ruling on Wednesday cleared the way for Argentina to pay outstanding debts and raise new funds to pay those settlements.

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In a separate announcement, the official gazette said Argentina had hired McGraw Hill Financial's Standard & Poor's Ratings Services for the bond issue because it was the only one of the major three credit ratings agencies that would sign a contract under Argentine law.

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— With contribution from CNBC's Seema Mody.