The board of directors at Repsol will set guarantees today to ensure payment of 5 billion euros in bonds that the Argentine government is offering in exchange for expropriating YPF oil holdings. This is a major event for the oil company.
With this agreement, Repsol will become one of Argentina's main creditors. The company, run by Antonio Brufau, will own 2.5% of Argentina's public debt. The guarantees are necessary to ease anxieties felt by Repsol investors, who were prepared to make demands on the company if it did not try to recuperate losses after last year's expropriation.
The agreement is key development for Repsol, and investors are sure to agree that they are getting a good deal and solid investment.