Argentina makes $9.3 billion payment to pre-Feb. 29 settling creditors

By Caroline Salls

Pittsburgh, April 25 – The Republic of Argentina’s Ministry of Finance said $9.3 billion in payments were made Friday to creditors that reached a settlement with the republic before Feb. 29.

According to a news release, this will allow the release of the payment of the coupons owed to bondholders in connection with 2005 and 2010 exchanges, which will be implemented within the next three weeks.

The ministry said Friday’s payments were made with the income generated by a $16.5 billion bond issue on April 19. The remaining $7.2 billion will be used to boost the reserves of the Central Bank and be directed primarily at financing infrastructure work.

The total commission paid to the seven underwriters was of 0.18% of the issue.

Argentina said public securities issued in connection with the payment included $2.75 billion of 6¼% notes due 2019, $4.5 billion of 6 7/8% notes due 2021, $6.5 billion of 7½% notes due 2026 and $2.75 billion of 7 5/8% notes due 2046.

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