After the infiltration by YPF and Techpetrol in the last week of October, Today it was Pampa Energia’s turn to testify that global financial markets have been reopened for Argentine companies.after such placements had been suspended in recent months amid the uncertainty caused by the electoral process.
The company is one of the country’s largest energy companies, featuring integrated electricity and gas generation and distribution businesses. Raised USD 450 million in 12 years, It issues a bond that pays the holder an annual coupon of 7.75% and yields a discounted rate of 8.125%.
Considering this, Although the rate corresponds to a risk of just under 400 basis points, This fact excites market analysts and makes them think that Argentina is close to returning to the bond market to face the next payment without relying on external aid.
This performance was made possible after Pampa Energia received an offer to purchase the title for more than $1.5 billion.“We have seen demand, including from important international investment funds, and the demand has reached a record 12 years,” he stressed in a statement.
“These are unprecedented times for private companies in Argentina.”This reflects investors’ confidence in Pampa’s financial strength and growth plans,” emphasized Gustavo Mariani, CEO of the company.
The company detailed that the long-term proceeds will be used for early repayment of negotiable debt in 2026.with a total amount of USD 120 million and a coupon of 9.5%. That means embarking on a financial restructuring that takes advantage of market opportunities and reduces debt costs.
On top of that, The remainder will be used to fund the development of Rincon de Aranda. An unconventional oil project the company is developing in Vaca Muerta.
This arrangement was carried out globally by JP Morgan, Deutsche, Citi and Santander, and domestically by Baranz Capital, Galicia and Santander. This takes advantage of Argentina’s renewed risk appetite, as evidenced by the significant decline in country risk following President Javier Millay’s victory in the last parliamentary elections.
This is what YPF and Techpetrol already indicated a few days ago by proposing to reissue bonds already issued and on the market for USD 500 million and USD 750 million, respectively. Subsequently, the company received a takeover offer for US$3.5 billion.
As a result, other companies (such as Southern Transportation Authority and Pluspetrol) have begun testing the market for new long-term deals to reduce debt costs and finance pipeline investments.
The entry of the dollar through financial instruments is one of the factors that changed the local market’s perception of the dollar’s future.especially since it arrives at a time when donations through commercial channels tend to decline.
Proof of this is our previous market expectations survey. (REM) You can already see the banknotes to close out the year in the floating band. A few weeks ago, there were concerns about whether he would continue, but he has returned for the first time in six months.
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