December 20, 2013
Gov't sets 1b dollar deal, extends BAADE scope
The government has broadened the scope of the BAADE economic development bond that aims at fostering investment in the energy market in 1 billion dollars. Though not a whitewash-like move, the decision will allow subscribers holding their capital in legal accounts abroad to deposit greenbacks in Argentina.
After a series of negotiations, Domestic Trade Secretary Guillermo Moreno came to an 500-million dollar agreement with the Bridas group, the Alejandro oil dealer and the energy tycoon Carlos Bulgheroni. Companies in the automotive sector have as well announced they will be acquiring BAADE for 300 million dollars. All parties buying bonds will be requested to have an account in a local bank to secure the transaction.
Moreno has yet not reached a deal with cereal groups to buy 500 million dollars with business leaders demanding first the creation of a secondary market to trade bonds prior to the purchase of BAADE bonds.