YPF Luz issued US$ 400 million 7-year notes. It did so at a rate of 10.25%. The company received offers for US$ 1,000 million.
Local companies were taking advantage of the financial “veranito” to carry out emissions on Wall Street. This is the case of YPF, Pampa and Telecom, which achieved lower rates.
YPF Luz is dedicated to electricity generation. It combines traditional thermal generation (based on gas) with renewable energy parks. It uses its energy both for its own supply and for other large industries.
The reopening of the international debt market was led by the oil company YPF, which managed to issue a 10-year US$ 500 million bond at a rate of 8.875% on June 24. Then it was Pampa Energía. On July 2, Marcelo Mindlin’s company issued a 10-year bond for a nominal value of US$ 300 million with a yield of 9.375%. And last week it was the turn of Telecom Argentina, which managed to place a bond for 400 million dollars, with a term of 7 years and an annual rate of 8%. Next week could occur the debut on Wall Street of the shares of the oil company Vista, created by former YPF Miguel Galuccio to extract gas and oil from Vaca Muerta,
In the placement of YPF Luz, 58.28% of investors are American, while 25.65% are European. There are 8.14% of South American capital and 6.27% of Asian investors.
In 53% of the cases, the buyers were investment funds; 18.5% were hedge funds and mutual funds, while the remaining 10% was acquired by insurance companies.
The funds will be used to capitalize the company’s subsidiaries, as working capital and for capital expansion expenses.
YPF Luz is the fourth Argentine entity to have issued bonds abroad in the last three weeks. In the case of the issue that took place yesterday, Citi, HSBC and Itaú participated as placement banks.
The companies that went out to look for funds believe it was a good opportunity. They took advantage of the exchange calm of the last months to get money that will help them operate until the end of the year. “From the STEP to the general elections, beyond the results, there can be political uncertainty. This window was the appropriate one to cover this year’s financial needs until part of 2020,” characterized one of the companies.
Financial analyst Sebastián Maril recalled that in 2018, Argentine companies obtained US$5.594 billion in financing in dollars. So far in 2019, that amount amounts to US$ 4,582 million.