In the last letter tender, the Treasury validated effective annual rates of 90% and in the case of bills tied to the dollar, 2.5 points more than the normal rate were paid. Banks, mutual funds and investors who enter the operation voluntarily will now be covered until September of next year against a runaway from inflation or a potential devaluation of the official exchange rate.
The Ministry of Finance put together a first option of Lecer, Lepase and Ledes that expire this month to be exchangeable for a Dual in June of next year. The second is made up of Boncer and Ledes to September that are exchanged for a Dual to July 2023, and a third package of Lecer and Ledes that conclude in October and are exchanged for a Dual to September of next year.
The operation will be settled on Friday, according to the Ministry of Finance. Through a communication, the holders of the Eligible Bonds LECER, LEPASE, LEDES and BONCER were invited to carry out a conversion operation of their instruments to dual dollar link/CER bonds maturing in June, July and September 2023.
One of the offers is to take one of these “Dual Bonds” maturing in June 2023 and deliver in exchange Treasury Bills adjusted for CER (inflation), or another at a variable rate plus 14%, both payable on August 16, or a third at Discount but due on the 31st of this month. The second option is another Dual Bond maturing in July 2023 and the securities to be delivered are a CER-Adjusted Bond, plus 1.3 percent, maturing on September 20, and a Treasury Bill at a discount, payable on September 30. of September.
A high participation of public entities, which hold 60% of the debt, was announced. Private banks, which own around 17%, have a strong incentive to participate in the swap.
As he maintains Adcap Financial Group, Finance will most likely pass this test. “Removing maturities is a very good thing because it takes pressure off the maturities wall. But now purer signals are needed. From now on, all rollover will be genuine and will allow us to see how the private sector moves in the tenders”.
The third option is also a Dual Bond but with expiration on September 30 of next year and for it the Treasury Bills can be exchanged, with CER and at a discount that must be paid on October 21, and the Treasury Bills at a discount with close on October 31.
The reception of the offers will begin at 10 am and will end at 3 pm next Tuesday and the settlement of the received and awarded offers will take place on Friday, August 12, the Ministry of Economy reported in a statement.
Source: Ambito
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