The measure comes after, for the second consecutive auction, the Ministry of Economy offered only bonds indexed to inflation and refinanced just over half of what matures in the coming days. Sent a signal to lower rates.
The Ministry of Finance and the Ministry of Finance approved a public debt conversion operation. Specifically, via the Official Gazette, it authorizes the expansion of the issuance of a specific bond.
According to Joint Resolution 61/2024, this is the National Treasury Bond in pesos zero coupon with adjustment by CER” (BONCER TZX26) maturing in June 2026. This title is offered to holders of the “Treasury Bond National in Pesos adjusted by CER 4.25%” (BONCER T2X5) maturing in February 2025.
The amount of the operation to expand the issuance of the “National Treasury Bond in pesos zero coupon with adjustment by CER” (BONCER TZX26), maturing on June 30, 2026, is up to three billion, three hundred and forty-six billion, two hundred and fifty-two million, two hundred and twenty-two thousand, one hundred and ninety-five Argentine pesos (NOV $3,346,252,222,195).
This means that new units of the existing bond are being created and that holders of another bond (the “National Treasury Bond in Pesos adjusted by CER 4.25% due February 14, 2025”) will have the option to exchange their bonds current ones for the new ones.
The context of the measure
The measure comes after the Ministry of Economy will place this Thursday $1.53 billion in the first debt tender in pesos of November, after rejecting a quarter of the offers made by investors. So, he could only renew 52% of the payments committed for the coming days, which are around $2.9 billion.
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Besides, in the exchange which had been launched to decompress the maturity of an inflation-linked bond scheduled for February 2025 achieved an adhesion of creditors just above 38%.
ANDThe low percentage of refinancing of the next maturities was expected by analysts. Above all, after the call for bids excluded (for the second consecutive time) both Lecap and Boncapthe fixed rate bills and bonds that have staged an upward rally in recent weeks. Again, the team Luis Caputo decided to put on the table only bonds that adjust for CER (inflation), known as Boncer.
Source: Ambito
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