& Tobago

Very usefull links


News links




Dow Jones

Oil price



Views and News




Argentina's YPF sells $500 million of overseas bonds


The YPF SA refinery stands in Lujan de Cuyo, Argentina.

- Citi, Itau, HSBC underwrote the driller's 10-year offer
- Government-controlled company sold the debt to yield 8.75%

By Pablo Rosendo Gonzalez and Rizal Tupaz / Bloomberg

Petroleumworld 06 25 2019

YPF SA , Argentina's biggest oil company, sold overseas bonds for the first time in more than a year after a plunge in borrowing costs opened a window of opportunity.

The driller issued $500 million of 10-year, dollar-denominated notes to yield 8.75%, according to people familiar with the offer, who asked not to be identified because the information is private. Proceeds from the sale, which was managed by Citigroup Inc. , HSBC Holdings Plc and Itau Unibanco Holding SA , will go toward working capital and refinancing existing debt. The bonds were initially marketed to yield a bit above 9%.

YPF has seen yields on benchmark securities due in 2025 plunge by more than 2 percentage points since late April to 8.67% as Argentine bonds rallied after President Mauricio Macri's choice of a running mate boosted his outlook for October elections. While state-owned YPF is traditionally among the country's biggest corporate borrowers, it hadn't issued in international markets since 2017 as an economic slowdown and a currency crisis sapped investor confidence.

The oil producer has also taken steps to improve its balance sheet, reducing its ratio of net debt to a measure of earnings to around 2.5 times, down about 60% since 2016.

A spokesman for YPF declined to comment on the sale.

YPF is the largest investor in the Vaca Muerta shale field. Covering an area the size of Belgium, it has become one of the world's top shale plays and is considered key to restoring energy self-sufficiency in Argentina.

The sale took place the same day the U.S. Supreme Court published a decision to allow a shareholder lawsuit over YPF's 2012 nationalization to go forward. Petersen Energia Inversora SAU, which held a 25% stake in YPF at the time of the takeover, says that company breached a contractual promise in its bylaws to make a tender offer to shareholders.

“The timing is a little odd since everyone knew the U.S. Supreme Court decision was coming,” said Roger Horn, a senior emerging-markets strategist at SMBC Nikko Securities America in New York. “But one take is that management has confidence in its capital expenditure plans.”

Story by Pablo Rosendo Gonzalez and Rizal Tupaz from Bloomberg. 06 24 2019


We invite you to join us as a sponsor.

Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.


Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions as the source.

Other stories you have to get authorization by its authors. Internet web links to are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.

Write to

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to:

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1



Editor & Publisher: Elio Ohep/
Contact Email:

CopyRight © 1999-2019, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld ™  / Elio Ohep - All rights reserved

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.