Debt in pesos: Economy will tender two new LECAPS, and bonds tied to the dollar and inflation

The Ministry of Economy called for a new debt tender in pesos to be held next Thursday, and will offer the market a combination of instruments from the National Treasury, such as two new letters at a capitalizable fixed rate (LECAP), a new bond that adjusts for CER and the reopening of a security linked to the dollar.

This is the second tender of the month, after Economía placed $2.92 trillion two weeks ago, the result of which implied a net financing of 84% since the maturities to be settled were around $470,000 million. The surplusAccording to the Treasury Palace, It will be used to buy dollars from the Central Bankwith which the payment of upcoming commitments in foreign currency will be guaranteed.

Below are the four instruments offered by the Secretary of Finance in this call for bids:

to. NATIONAL TREASURY BILL CAPITALIZABLE IN PESOS WITH MATURITY NOVEMBER 29, 2024 (S29N4 – new);

b. NATIONAL TREASURY BILL CAPITALIZABLE IN PESOS WITH MATURITY MARCH 31, 2025 (S31M5 – new);

c. NATIONAL TREASURY BOND LINKED TO THE US DOLLAR ZERO COUPON EXPIRATION 30 JUNE 2025 (TZV25 – reopening); and

d. NATIONAL TREASURY BOND IN PESOS ZERO COUPON WITH ADJUSTMENT TO BE EXPIRED MARCH 31, 2026 (TZXM6 – new).

Receipt of offers for all instruments It will begin at 10:00 a.m. and end at 3:00 p.m. on Thursday, April 25, 2024 (T).

The tender for detailed instruments will be carried out, in the case of points a. and b., by indicating the monthly effective rate without maximums or minimums, with a placement price of $1,000.00 for each VNO $1,000; and for points c. and d. by indicating a price and will not have a maximum or minimum price.

For the presentation of offers for these instruments, there will be two sections: one competitive and the other non-competitive. The offers presented in the competitive section must follow the following criteria:

– in the case of LECAP, they must indicate the amount of the VNO to be subscribed, which must be greater than VNO $50,000,000 and the monthly effective rate that this instrument will capitalize as a percentage number with two decimal places in increments of 0.01 decimal places. ;

– in the case of BONCER, they must indicate the amount of the VNO to be subscribed, which must be greater than VNO $50,000,000 and the price in pesos for each VNO $1,000 with two decimal places;

– in the case of the LINKED DOLLAR BONUS, they must indicate the amount of the VNO in US dollars to be subscribed, which must be greater than VNO USD 50,000 and the price in US dollars for each VNO USD 1,000 with two decimal places.

The offers presented in the Non-competitive tranches must be less than or equal to an amount of VNO $50,000,000 per investor, for instruments denominated in pesos, and less than or equal to an amount of VNO USD 50,000 per investor for the instrument denominated in dollars, and must be recorded only the amount to be subscribed.

They will be able to participate in the subscriptions of LECAP, LINKED DOLLAR BONUS and BONCER the interested human or legal persons, and for these purposes they must direct their expressions of interest in a timely manner through the settlement and clearing agents (integral and own) and negotiation agents registered with the CNV.