The underlying objective of the district governed by Jorge Macri is to “roll over” the payments of CABA27, a bond placed for US$890 million, which matures in 2027 but which in 2025 amortizes a third of the capital.
The Government of the City of Buenos Aires (CABA) intends to obtain debt again in international markets after eight years to refinance significant principal and interest payments, as confirmed by official sources to Ambit this Friday.
Earlier, it had emerged from the Bloomberg agency that HSBC bank is organizing a trip to New York and London for the next few days, in which officials from CABA’s finance area will participate. The underlying objective of the district governed by Jorge Macri is to “roll” the maturities of CABA27, a bond placed for US$890 million, which matures in 2027 but in 2025 amortizes a third of the capital.
These securities currently have a return of 377 basis points above risk-free US Treasury bonds.
The trip takes place after a series of private debt placements by, mainly, energy firms and in the midst of the financial asphyxiation that the National Government is applying to all the districts of the country.
“It is possible that the city is wanting to return to international markets taking advantage of the compression of national country risk. Even so, it is notable that the international rate remains very high and perhaps there is not as much appetite to buy local subnational debt. To my understanding, these surveys are carried out prospectively, perhaps looking for a placement at the beginning or middle of next year, betting on both FED cuts and a more consolidated internal stabilization, “he told this medium. Joel Lupierianalyst at Epyca Consultores.
How Argentine bonds are coming
The dollar-nominated bonds that are listed in Wall Street They recorded a majority of losses on Thursday, despite the fact that during the year they have accumulated increases of between 35% and 65%. For this reason the country risk prepared by the JP.Morgan bank is located at 1,236 basis points, when at the end of December it was around 1,900 points.
“Being able to move forward with the reforms and the fiscal package is important in order to consolidate the sustainability of the fiscal surplus, not only because of its dynamics but also because of the political consensus that it would imply in seeking to extend the high social approval and also aspire to soon be able to reactivation of economic activity can be achieved,” remarked the economist Gustavo Ber.
Source: Ambito
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