Argentina oil driller offers to buy back bonds due in April

Argentina’s state-run oil producer launched an offer to buy back some of its dollar bonds due later this year in a bid to reduce short-term debt. 

YPF SA, the country’s largest oil producer, said it will pay cash for the US$346 million outstanding on notes due in April. The company is dangling a premium for investors who tender before an early deadline on January 19. 

YPF’s dollar bonds returned 30 percent last year, the best performance for corporate debt in Latin America after airline Avianca, according to a Bloomberg index. The bonds due in April trade for around 99.5 cents on the dollar, according to indicative pricing compiled by Bloomberg. 

The firm hired Citigroup, JPMorgan, Santander, Banco Santander Argentina and Banco de Galicia y Buenos Aires to arrange the transaction. The offer expires on February 5.