Argentina targets $5 bn guaranteed bond issue at 6% interest

Argentina's government is preparing a new bond placement of up to $5 billion, backed by multilateral guarantees from the World Bank (US$2 bn) and the Inter‑American Development Bank (US$550 mn). The operation aims to refinance debt maturing in 2027 without increasing the overall stock of obligations and to lower the financing cost to about 6% per year, compared with the 8.5%–9% rate expected for an un‑guaranteed issue.

Economy Minister Luis Caputo said the proceeds will replace higher‑cost liabilities and extend the debt profile, paving the way for Argentina's return to voluntary international credit markets. Analysts view the guaranteed issue as a first step toward future issuances under New York law without multilateral backing. The plan has drawn criticism from former Economy Minister Domingo Cavallo, who argues that the guaranteed funds should be directed to infrastructure rather than debt refinancing.