YPF to issue $760 million in bonds

YPF will issue bonds for 3.5 billion pesos ($760 million) as part of its push to reduce fuel imports by investing in domestic output, the state-controlled energy company said in a letter to regulators today.

In May the government seized a 51 percent stake in YPF from Repsol after accusing the Madrid-based parent company of underinvesting in Argentine production.

"The board of directors of YPF, at their August 10 meeting, approved the issuance of negotiable obligations up to 3.5 billion pesos," a letter from the company to local stock market regulators said.

The debt issuance will come under a $1 billion 2008 shelf registration.

The company says it needs to invest $7 billion per year in production capacity in order to regain energy self-sufficiency after years of rising fuel imports.

YPF opened a diesel fuel refinery near the city of La Plata last week, part of its plan for increasing fuel output by 26 percent by 2017.

On Friday, the company reported an 8 percent year-on-year increase in second-quarter net profit to 833 million pesos ($181 million).