BlackRock’s endorsement of the Government: it added BOPREAL to its holdings after meeting with Milei

The most significant investment fund in the world, BlackRock, announced on Wednesday that it acquired a modest amount of the BOPREAL Series 1 as part of its assets. This title was designed to address the debt with importers inherited from the previous government and seeks to resolve the gap between permits granted for imports and access to the necessary dollars..

The series 1 of the bond was offered by the Central Bank (BCRA) to importers throughout January and is listed on the secondary market. Although the investment of BlackRock in this bond is relatively low, with just US$1.8 million, it caused surprise in the market, since the instrument generated doubts at the local level despite improving performance with the progress of the tenders. However, so far, its price does not exceed US$68.

Joel Lupieri of the consulting firm EPyCa pointed out in statements to Ambit that the operation could find its support in the “good rate of return” that BOPREAL has if it is paid as planned, as well as the good relations of the fund with officials of this government.

Other market sources also confirmed to this medium that the operation was completed, but the news was announced by economist Javier Abascal on his X (Twitter) account.

The relationship between Fink and Milei

This fact does not seem to have discouraged Larry Fink, the powerful CEO of BlackRock, who last week held a virtual meeting with president Javier Milei. During this meeting, the magnate expressed his interest in exploring the “opportunities” that Argentina offers, even confirming his visit to the country in May. However, his visit will not focus on analyzing new financial investments, but rather on the real economy.

According to sources from the fund itself, Fink’s visit will focus on “discussing possible investments in infrastructure for our clients together with local investors.” If this renewed interest is translated into concrete operations, It could mean the entry of foreign currency that would be well received by the Minister of Economy, Luis Caputo. In any case, the amount invested in BOPREAL seems to be more symbolic than substantial, perhaps a small gesture of friendship.

This week, the Central Bank (BCRA) announced the results of the first auction of series 2 of the Bonds for the Reconstruction of a Free Argentina (BOPREAL), revealing that a total of 349 offers were received that were completely awarded, reaching a total amount of NV US$271 million.

This release, intended exclusively for companies in the MSME segment, marked the beginning of a series of weekly tenders that will continue until the maximum amount of NV US$2,000 million is covered. It is important to note that initial participation was restricted to that sector, which suggests a possible increase in demand in the near future, when bidding opens for all companies.