While the market assures that the first series of the Bond for the Reconstruction of a Free Argentina (BOPREAL) will meet the expectations of Central Bank (BCRA), The second series of this instrument will be launched in February. SMEs will pay special attention with debts exceeding US$500,000.
Series 1 of this bond, which seeks to provide predictability to commercial debt payments accumulated until December 12, ends the subscription period this Wednesday, January 31. The sweeteners for the tenders in this first tranche include a rate reduced to 0% in the COUNTRY tax and an authorization to access the MULC for the payment of imports of goods and services owed for up to 5% of the total value of this title, in whether it represents at least 50% of the total debt. After five tenders, the BCRA managed to place US$2,454 million in nominal value, accumulating a total of US$4,096 million nominal.
This way, It would only remain to issue US$904 million of nominals to complete the first series. Taking into account the significant participation in the BOPREAL of a terminal of Japanese origin and that the total amount of the sector would have been approximately US$7,000 million, it led to think that the Government would easily reach its objective of US$5,000 million. in January. However, it highlights Norberto Sosa, director of IEB, which part of the debt of some terminals “it would have implemented some type of hedge, which means that the BOPREAL alternative is not its solution.”
According to the team Personal Investment Portfolio (PPI)the good performance occurred after having resolved operational issues and reduced the spread between the implicit exchange rate and the CCL dollar: “This aspect was the most relevant when making the decision to enter BOPREAL or not”understands.
In that sense, Javier Casabal, Fixed Income strategist at Adcap Grupo Financiero, highlights that parity “rose to levels of US$68”, meaning that importers were able to settle their debts with suppliers at $1,200 per dollar, 6% below the last CCL closing.
Thus, to the extent that the market speculated on greater adherence to BOPREAL, financial dollars closed lower last week. For the specialist, the last tender was “excellent and above expectations”, he assumes that the BCRA will reach its objective – US$5,000 million -, while the interest of local and foreign investors is “growing”.
BOPREAL: what Series 2 of the bonus for importers will be like
Starting next month, BOPREAL Series 2 will be put into playwith expiration June 30, 2025, for up to a maximum of US$2,000 million VN. As detailed by the Central Bank, this instrument in its second edition will not accrue interest, and contemplates the repayment of principal in 12 monthly and consecutive installments starting in July 2024.
It will have a limited issuance amount, based on the BCRA’s ability to commit foreign currency in the short term. Unlike the benefits of Series 1, will not be enabled for trading in secondary markets, although, they clarify from the organism, “it will be transferable so that the holder can assign it to a third party”, as foreign suppliers, financing providers or related entities.
As it is a shorter-term instrument, from the organization led by Santiago Bausili they assure that It will incorporate features that are attractive “particularly for large companies.”
In turn, last Thursday the Ministry of Economy, together with the BCRA, announced that Nearly 10,000 companies – more than half micro SMEs – will be able to access the official market to pay off commercial debts for less than US$500,000, which would consume US$1.2 billion.
The operation can be carried out starting in February and, according to the Government, it is the product of having completed the Commercial Debt Register, the accumulation of international reserves in its month and a half of management and the high acceptance of BOPREAL Series 1.
In this way, for Walter Moralespresident of Wise Capital, will pay special attention to “medium, medium-larger and large companies, because they do not have access to the cheapest dollar on the market.”
His PPI analysis runs along the same lines: “MSMEs whose debt exceeds US$500,000 million will have subscription priority.” Likewise, the IEB director concludes about the BOPREAL with the following: “It is important to understand that, although the bond has been presented as the solution to commercial debts abroad, “It is the main tool for contraction of the BCRA’s liabilities, to contain devaluation expectations.”
Source: Ambito
