Argentina’s economic outlook appears to be gaining traction, with energy companies increasingly looking to U.S. debt markets for funding, according to Bloomberg.
Shale driller Vista Energy raised $600 million in its first foreign bond sale, while Pampa Energia is preparing to return to the market later this year, fueled by growing production from Argentina’s Vaca Muerta shale. MSU Energy also secured $177 million to refinance its debt.
These moves underscore the growing confidence Wall Street has in President Javier Milei, who is nearing the end of his first year in office. Milei has remained steadfast in his commitment to economic deregulation and tackling Argentina’s long-standing budget deficits.
Alexander Robey, portfolio manager for emerging-market debt at Allianz Global Investors GmbH, noted, “The positive momentum on the macroeconomic side is opening the door for corporates to raise capital and refinance existing debt in the markets.”
He added, “Issuers are making the most of this opportunity, given that market sentiment can turn quickly.”
Bloomberg also reported that Argentina’s sovereign debt spread has hit a five-year low of 757 basis points, creating a favorable environment for corporate issuers.
Vista Energy secured an 11-year bond at a 7.6% yield, which is lower than the 8%-9% range seen earlier in the year.
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