Hipotecario seen tilting more toward local debt market for funding

Monday, October 17, 2011

Argentine lender Banco Hipotecario will probably become more active on the local bond market, a change from its usual strategy of placing debt abroad, Martín Deluca, commercial director at local financial services group Grupo SBS, told BNamericas.

"It's a new channel that they're exploring, and we will probably see it become more active if market conditions are ripe," he said.

Last week, SBS helped lead the lender's placement of 90.1mn pesos (US$21.3mn) in 18-month bullet bonds on the local market.

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The debt issue yielded 350 basis points over the country's private benchmark Badlar interest rate. Investor demand for the placement hit 113mn pesos.

Banco Hipotecario, which is partly state owned, ranks 13th in terms of assets and fifth in terms of shareholders' equity in Argentina's financial system.