February 25, 2014 / 6:45 PM / 4 years ago

Repsol board approves $5 billion Argentine settlement

MADRID, Feb 25 (Reuters) - Spain’s Repsol said its board of directors had approved a $5 billion settlement from Argentina over assets seized in 2012 which will now need approval from the oil major’s shareholders and the Argentine Congress.

In a statement on Tuesday, Repsol said it will receive a package of three dollar-denominated Argentine sovereign bonds with a nominal value of $5 billion.

Repsol will receive additional bonds - for a maximum face value of up to $1 billion - to compensate for the market discount on the first group of bonds.

The total market value of the combined packages will be at least $4.67 billion, which could be supplemented by $500 million in back interest payments on one of the bonds, known as the Discount 33.

Repsol has pledged to drop all legal arbitrage against Argentina as part of the deal and not file any further lawsuits, it said.

Repsol can sell the bonds whenever it wants the final amount it receives for the bonds cannot exceed $5 billion after expenses and interest.

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