(Bloomberg) -- Argentina’s energy companies are storming public debt markets to capitalize on investors’ optimism over President Javier Milei’s fiscal reforms.
Shale oil driller Vista Energy issued $600 million in New York on Wednesday in its first ever foreign bond sale. Pampa Energia SA, which is also ramping up output in Argentina’s heralded Vaca Muerta shale patch, has arranged investor meetings as it eyes returning to capital markets for the second time this year. MSU Energy borrowed $177 million to refinance its debt.
The moves to tap global lenders highlight the mounting enthusiasm on Wall Street for Milei. The president, who’s finishing his first year in office, has remained steadfast in his campaign to deregulate the economy and reverse years of endemic government budget deficits.
“The positive momentum on the macroeconomic side is opening the door for corporates to raise capital and refinance existing debt in the markets,” said Alexander Robey, portfolio manager for emerging-market debt at Allianz Global Investors GmbH. “Issuers are making the most of this opportunity given market sentiment can turn just as quickly.”
The backdrop for issuance is also more favorable. Argentina’s sovereign debt spread is at 757 basis points, hovering around levels not seen in five years, according to a JPMorgan index.
Companies are also able to borrow on more favorable terms. Vista sold its 11-year bond with a 7.6% yield, compared with rates in the 8%-9% range when a wave of issuers came to the market between July and October.
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