The placement of the BDC28 was at a cutoff rate of around Badlar + 8.75%equivalent to a price of $100.30 for each hundred face value issued.
The Undersecretary of Finance of the City, Abel Fernandez Semhanhighlighted that “It was a transaction designed with a triple objective, based on the market’s appetite to diversify sovereign risk and intended mainly for investors seeking to position themselves in duration in national currency”
“Thanks to the success of the issue, the average life of the debt was improved by extending maturities. On the other hand, we managed to provide the BDC28 bond with greater liquidity, increasing its outstanding capital and transforming it into the new long-term market reference in national currency and, finally,, we set an unprecedented precedent in terms of financial responsibility, since in fiscal terms the operation was structured in order to clear part of the debt maturities that the next administration will have to face during the first quarter of its mandate”, added the Buenos Aires official.
Regarding financial responsibility, he pointed out that “andThis action is the first of a series of preventive financial actions that we will be executing, as long as market conditions allow, aimed at clearing commitments that will have an impact on the incoming government”.
The outstanding amount of the Bond in pesos 2028 after this issuance will exceed 30,800 million pesos nominal valuewhich, due to the credit conditions, transforms it into the reference bond in pesos of the local market, both in term and in volume.
The amount that the City had set The objective for this placement was the equivalent in pesos to USD 100 million.and the underwriters of the transaction were the Banco Ciudad, HSBC, BST, Banco Galicia, TPCG and Facimex.
Source: Ambito
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