With this conversion operation “the aim is to extend the terms of the Treasury’s debt profile in pesos, as was done in August,” explained the portfolio led by Sergio Massa.
Those interested in participating in this exchange will receive securities that can be adjusted at the time of payment, either by the variation of the dollar or the price index, hence its name “dual” bond.
Holders of Treasury Bills adjusted by CER (inflation) maturing on November 23, holders of Discount Bills and bonds tied to the dollar variation with closing date of November 30, will be able to access this dual bond maturing on June 30. november.
Holders of CER-adjusted and discount bills maturing on December 16 may also opt for a dual bond maturing on July 31 of next year; and discount bonds closing on December 30.
Finally, the third option is a dual bond payable on September 29, 2023 for those who have CER-adjusted bonds, plus 8.5%, maturing on November 29.
The reception of offers will begin at 10 a.m. and will end at 3 p.m., reported the Ministry of Finance; and on Tuesday, November 15, the new Instruments will be credited to the accounts of each participant.
What does the market expect?
According to financial analysts, Adhesion will have a floor of between 57% and 58%, supported by the holdings of public sector entities.
From PPI Strategy they indicated that “observing the seven instruments that are exchanged, the Treasury is attacking $1,242,357 million (around 73.1% of the needs for the two months)” and affirmed that “a priori, and given that we are getting closer to presidential elections, we believe that this conversion will not obtain a great adhesion of the private sector”.
“Taking into account that the public sector would own 45.7% of these 7 instruments, making a simple linear projection, we do not believe that the total adherence of the swap will exceed 57/58%,” he added. In turn, the result of the August exchange showed an adherence of 70.6%.
For his part, Juan Anciaume, Head of Sales & Trading at Criteria, considered that “The swap allows part of the short-term maturities to be decompressed, in exchange for lengthening the terms for a few months, in dual assets that the investor values.”
Likewise, he considered that “in the coming months there will surely be new offers that try to continue on this path given that the market has not shown much appetite for instruments longer than the first half of 2023.”
Source: Ambito
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