The bonds were issued for a period of 18 months at 8.5% annual interest, payable every 6 months, the source said. Higher liquidity in the pension fund system (AFJP) was behind the success of the bond issue, the source said, adding that Tecpetrol is studying the possibility of another issue this year. Tecpetrol originally planned to issue the bonds in March, but suspended the issue because market conditions were not "optimum." The issue is part of Tecpetrol's US$400mn debentures program, which it recently extended to 2008. Argentina's national securities regulator CNV approved the extension in March.
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