By Taos Turner BUENOS AIRES--Argentina's largest oil and natural-gas company, YPF SA (YPF, YPFD.BA), plans to buy back corporate bonds for a total of $79 million. The bonds, which mature in 2028, were issued under the condition that if Argentina's government took over more than 49% of the company, bondholders would have the right to ask YPF to buy back the debt at par value plus interest. Earlier this year, the government expropriated 51% of YPF from Repsol SA (REP.MC), which was its majority shareholder. YPF said Friday it will buy back the debt "with the goal of maintaining the company's excellent historic reputation in markets and as part of its steps toward becoming a transparent company that offers attractive options for investors." Earlier this week, YPF said it would pay out 5.7% of 2011's profits as dividends, or 303 million pesos ($67 million), as it sets out to invest revenue and boost output. "The change in the dividend distribution policy contrasts with those adopted in recent years, when the payout of profits surpassed 80%," the company said. YPF will put ARS5.75 billion into an investment fund, "a substantial step towards meeting the goal of ending 2012 with investment of close to $3.5 billion," YPF said. The company plans to invest about $7 billion a year between 2013 and 2017 as part of a plan to boost declining output. Write to Taos Turner at taos.turner@dowjones.com
