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By: Paul Kilby
Argentina launched a US$7bn two-part bond on Thursday, covering its planned dollar issuance for the year in one fell swoop on the back of more than US$21bn of orders.
The deal was the sovereign's third in US dollars since being welcomed back to the international capital markets last year after a protracted fight with creditors, and demand was strong.
The buyside appeared satisfied with pricing on the offering of five and 10-year bonds, and many in the market said Argentina looked attractive compared to other EM and high-yield debt.
"We still see Argentina as undervalued and relatively cheap at this level," said Yong Zhu, a senior portfolio manager at DuPont Capital Management.
Leads launched the US$3.75bn 10-year at 7%, at the wide end of 6.875%-7.00% guidance, and the US$3.25bn five-year at 5.625%, or the tight end of guidance of 5.625%-5.75%.
"Argentina set yields ... in line with our expectations on the five-year and slightly less than our models suggest on the 10-year," said Sean Newman, a senior portfolio at Invesco.
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