Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 2

Argentina's Buenos Aires province said on Monday it would offer holders of a 2021 bond <AR058449334=> a sweetener to agree to a proposal to delay a $250 million amortization payment until May amid a major debt crunch hitting the country.
The province said in a statement it had received "significant support" from creditors over the proposal, which sees the payment on the bond pushed back from its original date of Jan. 26 to May 1.
The province was forced to push back the consent solicitation deadline last week after failing to get sufficient support from bondholders. The government needs holders of 75% of the debt to agree in order to move ahead.
The new deadline for bondholders to make their decision is this Friday at 1 p.m. local time (1600 GMT).
The payment on the 2021 bond marks the first major test for the South American country as it grapples with complex talks to restructure about $100 billion in sovereign debt that the new Peronist government says it cannot currently pay.
The province, Argentina's wealthiest and most populous, said in its statement that it would sweeten the deal with an interest payment on the deferred capital that would be due within five business days of the amendments going into effect.
That would amount to around $28.70 for every $1,000 of deferred capital, the government said.
"The province of Buenos Aires recognises it is asking these bondholders for an exceptional measure," the government said , adding it hoped to "avoid damages and losses both for the province of Buenos Aires and for the investment community."
 
Argentina's Buenos Aires province said on Monday it would offer holders of a 2021 bond <AR058449334=> a sweetener to agree to a proposal to delay a $250 million amortization payment until May amid a major debt crunch hitting the country.
The province said in a statement it had received "significant support" from creditors over the proposal, which sees the payment on the bond pushed back from its original date of Jan. 26 to May 1.
The province was forced to push back the consent solicitation deadline last week after failing to get sufficient support from bondholders. The government needs holders of 75% of the debt to agree in order to move ahead.
The new deadline for bondholders to make their decision is this Friday at 1 p.m. local time (1600 GMT).
The payment on the 2021 bond marks the first major test for the South American country as it grapples with complex talks to restructure about $100 billion in sovereign debt that the new Peronist government says it cannot currently pay.
The province, Argentina's wealthiest and most populous, said in its statement that it would sweeten the deal with an interest payment on the deferred capital that would be due within five business days of the amendments going into effect.
That would amount to around $28.70 for every $1,000 of deferred capital, the government said.
"The province of Buenos Aires recognises it is asking these bondholders for an exceptional measure," the government said , adding it hoped to "avoid damages and losses both for the province of Buenos Aires and for the investment community."

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Dominican Republic's US$2.5 Billion Notes Rated 'BB-'

  • 27-Jan-2020 21:07 EST
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MEXICO CITY (S&P Global Ratings) Jan. 27, 2020--S&P Global Ratings today assigned its 'BB-' issue rating on Dominican Republic's US$2.5 billion senior unsecured notes:

  • US$1 billion at an interest rate of 4.50% due in January 2030, and
  • US$1.5 billion at an interest rate of 5.875% due in January 2060.
The rating on the notes is the same as the long-term foreign currency sovereign credit rating on Dominican Republic.

Our ratings on Dominican Republic reflect our expectation of solid and above peers' economic growth over the next three years, which should continue to improve living standards. The ratings also reflect the track record of a sounder monetary policy framework, which includes inflation targeting. The ratings are constrained by the country's institutional weaknesses, increasing general government debt burden, and still-vulnerable external position that keeps the sovereign exposed to external shocks.
 

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