After a week in China, the Minister of Economy, Sergio Massa, it will focus on alleviating the financial situation of the Treasury and refinancing maturities in pesos. To this end, the Secretary of Finance, Eduardo Setti, met last week with institutional investors, banks and mutual funds, to whom he promised to send the proposal for the new exchange offer as soon as possible.
The market men expected to have the basket of instruments on their desks last Friday, but it did not arrive. One of the witnesses to the meeting indicated that although at the beginning of the talks there was talk of doing it by the middle of the month, Economía could do it this week.
“What (Setti) made clear is that the duals are going to be exchanged for new duals. The Government does not plan to increase the offer with new duals but it does maintain those that are already in that condition,” said one of the attendees. In addition, he added: “The banks went with that request and Economy guaranteed them that there will be duals.”
The swap includes maturities through September. “They are going to raise everything that expires until September,” explained another operator who participated in the meeting. “They want to incorporate June but they are somewhat afraid that it will harm the month’s tenders that, for now, have a good rollover rate,” insured from an FCI.
In addition, they specified that the offer of instruments would be similar to the previous one “with a mix of 2024/2025 and the duals.”
There is confidence of wide acceptance
Regarding the rate, from the market they maintain that it has to be similar to the dual 24 but that “there should be some award about what the secondary market is today.”
They warned that the Economy “is going to do better than in the second exchange (in March it reached 64% acceptance) because there is a large public, that is, many bonds held by the State itself at these maturities and also because a few weeks ago a genuine demand of 2024”.
“In the other exchanges, the risk of profiling was a little more current now, not so much. That is a favorable aspect for the Government“, they specified.
Last week, after the meetings of the Secretary of Finance with banks and with FCI, Economía reported that “it is analyzing and working on the launch of a voluntary asset conversion operation to continue with the process of ordering the maturity profile in pesos and obtain financial relief for the Treasury”.
“Given the public sector’s proportion of maturities and the support of the private sector in periodic tenders, the objective is to achieve an extension of terms that clears maturities and generates greater predictability in the market,” he concluded.
According to market data, these maturities total about 10 trillion pesos, of which 1.1 trillion are positioned in June, 4.2 trillion in July, 2.2 trillion in August and 2.5 trillion pesos in September.
Source: Ambito
