Bonuses for importers: when BOPREAL are issued, in what currency and what interest they offer

These bonuses will be offered, starting next Tuesday the 26th, as vehicles for channel the demand for foreign currency from importers of goods and services with commercial debts for operations with customs registration or service actually provided until December 12, 2023.

Through the bidding for these new instruments, the BCRA will offer “an orderly solution to resolve the crisis generated by the accumulation of commercial debts of importers at unmanageable levels in the short term with the available stock of reserves, functioning as a bridge link with the accumulation of reserves associated with the trade balance surplus projected for the next years”.

Along these lines, importers will have the possibility of acquiring these instruments with the liquidity in pesos that they have at their disposal to meet their commitments abroad and in exchange they will receive a certain flow of foreign currency from the BCRA.

Bonds for importers: in what currency are BOPREALs issued, what rate do they offer and when do they pay interest?

The BCRA will offer a range of alternatives through three instruments, taking into account the impossibility of providing a single short-term solution for all importers.

The three instruments, which will be denominated and payable in dollars, may be acquired in pesos through a technical exchange ticket for the acquisition of foreign currency.

Through communication “A” 7925the BCRA established the requirements so that importers with debts abroad for the import of goods with customs registration prior to December 12, 2023 and for the import of services actually provided prior to the same date can access the primary tenders for these instruments.

In the same communication, it was established that Sales with settlement in foreign currency of securities acquired in primary bidding will not limit the holder’s access to the free exchange market to carry out other authorized operations.

Based on the projected flow of the trade balance for the coming years, the BCRA’s future commitments were staggered, distributing the delivery of foreign currency through a short-term bond (Series 2 due June 2025), a medium-term bond (Series 3 due May 2026) and a third bond with the maximum term established in Communication “A” 7918 (Series 1 due October 2027).

These future commitments, in turn, take into consideration the need to have foreign currency within the framework of the normalization of the flow of imports of goods and services established in Communication “A” 7917.

The BOPREAL Series 1 will be offered by the BCRA starting December 26, 2023. Series 2 and 3 of the BOPREAL will be offered in maximum amounts established based on the data provided by the register of commercial debts of importers prepared jointly by AFIP and the Ministry of Commerce and Industry (the “Register of Commercial Debts with Foreigners”).

BOPREAL SERIES 1 (expiring in 2027)

As this is the longest-term instrument and, therefore, the one that best protects the BCRA’s currencies, Particular characteristics were incorporated with the aim of attracting greater demand from importers, particularly large companies.

To the extent that said objective is achieved, the BCRA indicated that “There will be greater availability of shorter-term titles, particularly aimed at those importers who, due to various particularities, cannot acquire this instrument.”

SERIES 1 will earn a interest rate of 5% per year and, like the other two series, it will be payable in dollars (both capital and interest).

The main peculiarity of this instrument is that It will be separated starting March 1, 2024 into 4 independent series (strip), maintaining identical conditions to the original bonus and adding additional benefits in 3 of the 4 series (SERIES 1-D does not include them).

Both SERIES 1 and its independent series (strip) will be enabled for transfer and trading in secondary markets. The BOPREAL SERIES 1-A, SERIES 1-B AND SERIES 1-C, equivalent to 70% of the total SERIES 1, incorporate:

1) The early redemption option in favor of the holder, providing an early liquidity option at any time from the dates indicated for each series and until the maturity of the securities. In the event that the holders make use of the early redemption option in their favor, they will receive pesos at the reference exchange rate of Communication “A” 3500 on the day of notification of exercise of the option.

2) They will be eligible for the payment of taxes within the framework of the provisions of Decree 72/23.

Likewise, the tenders for BOPREAL SERIES 1 taken until January 31, 2024 will enjoy the following additional benefits:

1) A rate reduced to 0% in the PAIS Tax, as explained in Decree 72/23.

2) An exceptional authorization to access the exchange market from February 1, 2024 for the payment of imports of goods and services prior to December 12, 2023 for up to 5% of the total value of BOPREAL SERIE 1 securities acquired in primary bidding, to the extent that the participation in said securities represents at least 50% of the total debt for imports of goods and services as of December 12, 2023.