May 7 (Reuters) - Argentina will reopen an outstanding bond issue and sell new sovereign debt for a combined $1.12 billion, the country's official gazette said on Thursday, after state oil company YPF placed $1.5 billion in debt last month.
The new bonds will be due next year and will be denominated in local pesos. Bids for the new paper are to be accepted during business hours on Thursday, said the gazette, which is used to announce government policies.
The new issue will be due in May 2016, while the reopenings will be due in March and September 2016, the gazette said.
Argentina has been largely cut off from international capital markets since its 2002 debt default. The country restructured most of its defaulted sovereign bonds in 2005 and 2010, but a small group of hedge funds have sued in U.S. courts for 100 cents on the dollar.
Despite the messy legal feud, state oil company YPF last month sold 10-year bonds with a coupon of 8.5 percent. The issue was originally set for $500 million, but strong demand pushed it to $1.5 billion amid optimism the country will take a market-friendly turn after the October presidential election.
(Reporting by Walter Bianchi and Hugh Bronstein; Editing by Chizu Nomiyama and Paul Simao)