The instrumentation of the operation was carried out based on the provisions of article 15 of decree 331 of June 16 of this year (modification of the Budget) by which the Treasury Palace was authorized to “carry out the replacement of the eligible titles detailed in Annex I of Law 27,556 (on Public Debt Sustainability) that, as of March 30, 2022, were not submitted to the debt restructuring operation under Argentine law carried out in the framework of the aforementioned law“.
Such replacement, it was explained in the recitals of the resolution, “must be made by the new titles issued by article 2 of Law 27,556, whose financial conditions are detailed in Annex IV of Decree 676/2020.”
Also, it is established that “The holders of the eligible titles will receive new titles in dollars, except for the case of the eligible titles linked to the dollar, to which the National Treasury Bond will be delivered in pesos with adjustment for CER 2% due 2026 (Boncer 2026 2 %)in accordance with the exchange ratios established in Annex III of Decree 676/2020 and in the terms and conditions established by the Ministry of Economy”.
The eligible titles are a series of Letes in dollars with maturities between August 30, 2019 and February 14, 2020, in addition to Bonar in dollars 2020, 2023, 2024, 2025 and 2037, Discounts in dollars 2033 and Par Bonds at a fixed rate in dollars 2038.
All these letters and bonds will have as consideration bonds in dollars under Argentine law with maturities in 2030, 2035, 2038 and 2041.
On the other hand, bonds in pesos adjusted by the Reference Stabilization Coefficient (Boncer) will be taken as consideration for the Lelinks maturing on December 4, 2019, Bonar in dollars on February 13, 2020 and Bonte in dollars of 5 August 2021.
“Holders of eligible titles will not be entitled to receive any cash payment for any accrued and unpaid interest on their eligible title.which is replaced by a new title, and will receive in its place a new title for an amount equal to the accrued interest on each eligible title from the date of the last interest coupon payment on the eligible title through April 6, 2020 (exclusive )”, was specified in the annex to the resolution.
Those holders who receive new securities denominated in dollars will receive “Bonds of the Argentine Republic in US dollars 1% 2029” in accordance with the relationships expressed for each Original Face Value detailed in the annex.
Source: Ambito
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