Economy expanded a bill in dollars to cancel maturities: what amount is it?

He Ministry of EconomySecretariat and Finance and Secretariat of Finance issued a Joint Resolution 24/2024 published in the Official Gazette where they expanded the issuance of a letter in Dollars to cancel interest maturities.

Economy seeks to cancel the sixty percent (60%) of the interest services of the aforementioned non-transferable National Treasury Bill denominated in US dollars.

The decree establishes that the expansion is of the USD bill due April 3, 2029 originally issued on April 3, 2024 for an amount up to the original nominal value of 1,313,737 to be paid into the Central Bank at par, accruing interest from the date of placement.

It is worth remembering that the payments of capital amortization services and sixty percent (60%) of the interest services of non-transferable bills in the portfolio of the Central Bank of the Argentine Republic (BCRA)will be replaced, at their expiration date, by new public securities issued at par, with a term of five (5) years.with full amortization at maturity, and which will accrue a equal interest rate at which the BCRA’s international reserves accrue for the same period and up to a maximum of the SOFR TERM rate for one (1) year plus the adjustment margin of 0.71513% minus one (1) percentage point, applied to the amount of capital actually subscribed, as determined by the Body Responsible for the Coordination of Financial Administration Systems, and that The remaining 40% of the interest services on the aforementioned bills will be paid in cash.

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

He 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 capitalizable fixed rate bills (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 surplus, as reported by the Treasury Palace, will be used to buy dollars from the Central Bank, with 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.