The Ministry of Economy carried the third debt exchange of the year will take place this Mondaywhich they entered exclusively securities held by public organizations with expected maturity in the fourth quarter of 2023 for a total amount estimated at $616,000 million, for new bonds maturing in 2025 and 2026.
The operation had different characteristics than previous operations, since, Since private sector holders did not enter, there was no opening scheme for receiving offers and bidding, but rather it was “a procedure to rearrange the curve,” sources from the Treasury Palace explained to Télam.
Last week, the portfolio headed by Sergio Massa arranged the expansion of the issuance of Boncer 2026 – with maturities in 2025, too – to exchange for Treasury Bills (Letes) in pesos and dollars, maturing in next October and November, and that are in the possession of public organizations, mainly the Central Bank (BCRA) and the Sustainability Guarantee Fund (FGS) of the National Security Administration (Anses).
It did so through Joint Resolution 49/2023 of the Secretariats of the Treasury and Finance, which determined the expansion of the issuance of National Treasury Bonds in pesos with adjustment by CER plus 2% maturing in 2026 (Boncer 2026 2% ) originally issued in 2020, which were placed in national State entities with relevant holdings of instruments maturing during the last quarter of the current fiscal year, such as the BCRA and the FGS. The objective of the measure was “to continue clearing the maturity profile.”
“An extension of these maturities is expected by more than $600,000 million to 2025 and 2026”The Secretary of Finance, Eduardo Setti, said last Thursday through his account on the social network X (formerly Twitter).
The operation completed today was carried out “under market conditions”, as established in Article 11 of Decree 331/2022, which details that the instruments were taken “at the technical value calculated on the settlement date of each of the placements.”
According to data from the Congressional Budget Office (CPO), the Treasury faced, until before the exchange, debt maturities in pesos in the last quarter for $3.66 trillion: $1.77 trillion in October, $1.67 trillion in November and $0.22 billion in December.
In this way, maturities until the end of the current year would be around $3 billion. “An extension of these maturities is expected by more than $600,000 million to 2025 and 2026,” Secretary Setti had said when announcing the exchange last Thursday
The last exchange launched by Economía took place at the beginning of last June, with which 78% adhesion was obtained for securities with maturities in the months of June, July, August and September, and allowed extending commitments for the coming months of $7.4 billion, in what was the largest conversion operation of Argentine history in terms of the debt market in pesos.
On that occasion, almost 90% of the $7.4 trillion were exchanged for papers maturing between November 2024 and January 2025, in instruments adjusted for the variation in the official dollar, inflation (CER) or both (DUAL ).
According to Economy calculations, the average maturities with the private sector for the last quarter of the year are equivalent to 0.1% of GDP.
In the three tenders that took place in September, $1.2 billion in addition to the maturities were obtained, which implied a “roll over” rate – issuance of new debt with respect to maturities to be paid – of 231% in September and, in So far this year, net financing of $4.2 billion was achieved.
The next tender will take place on Thursday, October 12, as previously reported in the preliminary tender schedule for the second half of 2023.
Source: Ambito
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