The government has successfully issued a record US$16.5bn in bonds, marking an eye-catching return to international debt markets after 15 years on the sidelines.
The four-tiered bond package attracted investor demand of nearly US$70bn, a historic high according to the government.
“This is the biggest demand in history for a bond from an emerging market country or company,” said Finance Minister Alfonso Prat-Gay, who recently completed a roadshow to attract investors.
The sale included bonds with four different maturities, with interest rates ranging from 6.25%-8.0%.
Local press revealed an initial breakdown of US$2.75bn three-year bonds at a 6.25% yield, US$4.5bn five-year bonds at a 6.875% yield, US$6.5bn ten-year bonds at 7.5%, and US$2.75bn 30-year bonds priced at 8.0%.
The bonds were issued under New York jurisdiction, which Prat-Gay said offered the lowest costs now that there were no longer fears of litigation.
Most of the capital raised in the sale will be used to pay back holdout creditors – led by the so-called vulture funds – for defaulted debt that was not restructured after the 2001 crisis. Prat-Gay said that it would pay the roughly US$11bn owed on Friday. The remaining funds will likely be used to finance the budget deficit this year.
“We are resolving three issues in one. We are resolving the 2001 default, as well as the  default of the previous government. And at the same time we are returning to the market with the proceeds we will obtain with this emission, bringing funds for an infrastructure plan that will allow us to create more jobs and better connect the country,” said Prat-Gay.
“The access to credit will allow us not to implement austerity measures and reduce the budget deficit in a gradual manner.”
The Finance Minister added that the government hoped interest rate would fall further in the coming months, and expected Argentine provinces and companies to be able to benefit from access to credit.