Argentina sovereign bond issue 'to total $16.5 bn'

PARIS - Argentina's first sovereign bond sale in 15 years will total $16.5 billion, a source close to the matter said Tuesday, as investors gave the country's return to the global debt market a warm welcome.

Argentina hopes to end its financial isolation by borrowing cash on world credit markets for the first time in 15 years

Overall demand for the bonds, initially forecast to raise between $12.5 billion and $15.0 billion, stands at an unexpectedly high level of nearly $70 billion, prompting Argentina to increase its cash call target, the source told AFP.

Argentina will pay interest rates of between 6.25 and 8 percent on the bonds which have a maturity of up to 30 years, the source said.

Latin America's third-biggest economy is seeking to end its financial isolation by borrowing cash on world credit markets for the first time since a 2001 default.

The bond sale, which is to be completed by the end of the day, is the biggest Argentinian cash call on markets in two decades.