He Boprealbond launched by the government of Javier Milei in Argentina to reduce the stock of commercial debt of Argentine importers with their suppliers, finally aroused market interest during its third tender.
In it, 1,179 million dollars were placed, a figure vastly higher than the first two tenders combined, when the demand was only 125 million dollars in total.
It should be remembered that Argentine importers have a debt of 62,000 million dollars as a result of the limitations on access to foreign currency in recent years. Uruguayan exporters estimated that, last August, the debt amounted to 30 million dollars, according to data from the Chamber of Industries of Uruguay (CIU).
He Bond for the Reconstruction of a Free Argentina (Bopreal) is subscribed in Argentine pesos and has a maturity until 2027 (in series 1). It constitutes a payment commitment in dollars for importers with liabilities with their suppliers.
How do you explain the sudden interest in Bopreal?
The success in the third Bopreal tender was based on the increase in exchange gap –which rose to 40% after having dropped to 10%- and the expectation of its expansion, which improves the implicit price of the Cash with Settlement (CCL) which indebted importers could access by subsequently liquidating the bond in the secondary market.
This phenomenon is attributed to the combination of the low interest rate and the expectation of devaluation, derived from the announced exchange delay with a crawling peg very slow (2%), in contrast to a inflation which erodes the real exchange rate at an estimated rate of 25% monthly according to projections for January.
The Argentine economist Jorge Neyro considers that the expansion of the exchange gap to 40-45% boosted demand for Bopreal and predicted that this trend could continue in the long term, even reaching $5 billion in future tenders, Ámbito reported in Argentina.
Source: Ambito
