In the market it is considered that the result of the last swap operation of the year was good, although it is not something that has to arouse an exaggerated level of optimism. What is understood is that it greatly improves the debt profile that remains for the remainder of 2022.
“The National Treasury had to face maturities for $894,135 million in November and $847,110 million in December. After this conversion operationmanaged to award $931,116 million in cash value and thus reduce projected maturities to $464,625 million and $466,490 million, respectively”, it was reported.
The offer consisted of:
- Option 1: Reopening of the dual currency bond maturing on June 30, 2023 for holders of the LECER (X23N2) maturing on November 23 and for holders of the LEDE S30N2 and the T2V2 US DOLLAR-LINKED BOND whose Due dates are November 30.
- Option 2: Reopening of the dual currency bond maturing on July 31, 2023 for holders of the LEDE S16D2, the LECER X16D2 maturing on December 16, and the LEDE S30D2 maturing on December 30.
- Option 3: Reopening of the dual currency bond due on September 29, 2023 for holders of the BONCER TC22P due on December 29.
The financial markets analyst Christian Buteler told Ámbito that “the swap was not bad, although it is not to uncork champagne either”. In principle, Buteler considers that “It is assumed that a large part of the titles were held by the State itself.” According to official sources, public holdings represented about half of the eligible titles, although they clarified that they could not enter all of them because part was in trusts. However, private participation was lower.
“Likewise, this clears up the panorama a lot from now to the end of the year. In addition, it must be taken into account that it was a good day in general for Argentine bonds, both in dollars and in pesos,” he added.
Although the acceptance rate has been good, there were some bonds that had a very low rate of admission to the exchange, such as the LEDE as of December 16 with only 19%. It is speculated that in certain cases investors are preferring to take the pesos in anticipation of greater spending by the end of the year, which occurs seasonally.due to the effect of bonuses, among other issues.
The new horizon that the Government begins to see is September of next year. For now the market shows that it is not willing to lend beyond that time, prior to the Simultaneous and Mandatory Open Primaries (PASO). As Buteler points out, it seems that the market is handled with “illogical” criteria. initially today is willing to lend to the current government that is supposed to be anti-market and distrusting a potential change to another “market friendly” administration.
“Everything will depend on what the opposition does,” noted the financial analyst. What should be considered, he points out, is that if the case restructuring should not be proposed, which is something compulsory, but a voluntary operation, like the swaps that are taking place now.
Source: Ambito
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