Fifteen years after defaulting on more than $90 billion (£63 billion) of sovereign debt, Argentina has returned to the bond market.
And investors are scrambling to buy in to the new issue.
The country is aiming to raise $15 billion from its bond sale, but attracted orders worth $65 billion.
“Argentina is back,” said Finance Minister Alfonso Prat-Gay, according to the BBC.
The country is coming back to the markets at the right time.
Central bank policies since the 2008 financial crisis have sent yields on developed countries’ sovereign debt falling close to zero, and even to negative rates, leaving investors to search elsewhere for yield.
Argentina’s bonds will yield between 6.4% and 8% and range in maturity from three to 30 years, according to the Financial Times.
It marks an incredible return to the capital markets for the country. At the end of 2001, Argentina defaulted on $93 billion of external debt, devalued its currency from one peso to the dollar to four pesos, and suffered an 11% collapse in GDP.
The default was just the start of years of tortuous debt restructuring with the International Monetary Fund and private bondholders.
While former President Cristina Fernandez de Kirchner struck a combatitive tone in her dealings with bondholders, new President Mauricio Macri has made finalising negotiations with creditors and issuing new debt a policy priority.
Finally, in February this year, Argentina reached a $4.7 billion agreement with hold-out creditors, paving the way to the new bond issue.