DHAKA: Argentina has returned to the international borrowing markets with a sale of sovereign bonds that ends 15 years of exile since its 2001 default.

The country is raising up to $15bn, but demand for the bond issue was strong and attracted orders worth $65bn, reports the BBC.

Some of the money will go to repaying bondholders who for years opposed the terms of Argentina's debt restructuring after the default 15 years ago.

‘Argentina is back,’ said Finance Minister Alfonso Prat-Gay.

The money will be repaid over between three to 30 years, depending on the type of bond, with Argentina paying an interest rate of between 6.4% and 8%.

Final details of the fundraising were due to be announced on Tuesday, but investors welcomed Argentina’s return from years of isolation from the international bond markets.

‘It is fantastic that Argentina is accessing the market,’ said John Baur, a portfolio manager at Eaton Vance. ‘This is certainly a very important step in the direction of improving the future of Argentina economically.’

Key to paving the way for the bond launch was agreeing a deal with creditors who fought a lengthy legal battle with Argentina after refusing the terms of a previous restructuring.

In February, Buenos Aires reached a $4.7bn agreement with these creditors, led by hedge funds Elliott Management and Aurelius Capital.

BDST: 1330 HRS, APR 19, 2016
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