After the recent economic measures implemented by the government of President Javier Milei – including an agreement of 20 billion dollars with the IMF and a gradual flexibilization of the exchange rate – the stock market Argentine is on its way to significant reconfiguration. In this context, investors are urged to rethink their strategies and focus on financial instruments that offer protection against inflation and currency volatility. What options are currently on the table? The Negotiable Obligations (ON) issued by companies in the energy and hydrocarbon sectors stand out as two viable and high potential alternatives.
These instruments, issued by leading companies in the sector, have been consolidated as attractive options for investors seeking dollars with a lower risk than sovereign bonds.
The ON allow companies to issue debt in both local and international capital markets, gaining strategic relevance in a context where investment in infrastructure, exploration and production is key to take advantage of the vast natural resources of Argentina.
The country houses one of the world’s largest reserves of unconventional gas and oil, located mainly in Vaca Muerta, Neuquén province. This unconventional training has captured the attention of global investors and presents a specific opportunity to increase energy production, reduce import dependence and generate currencies through exports.
In this scenario, the ON allow to finance medium and long term projects, diversify financing sources and improve the debt profile. In addition, being regulated by the National Securities Commission (CNV), they offer transparency and investor protection mechanisms. There is also space for sustainable investment instruments, such as green or social bonds, especially attractive in the current energy transition context.
The growth potential of the Argentine energy sector – attached to competitiveness in dollar costs and the increase in international energy demand – posts the ON as an effective vehicle to channel private investment towards key areas of strategic development. If macroeconomic stability and a clear regulatory framework are consolidated, this instrument could become a central route for the productive financing of one of the most promising industries in the country.
For example, the “GMSA 2027” bonus (MRCAO) offers an annual coupon of 9.625% with semiannual payments and capital amortization, which gives effective $ 13.4% dollars. This negotiable obligation is qualified by Moody Local Argentina with BBB+, indicating a stable qualification perspective. Mediterranean generation SA (GMSA) is a company dedicated to the generation and marketing of electricity in Argentina.
Patricio Piaggio, CEO of Tax & Investments, said: “With a floating exchange rate between the 1,000 and 1,400 Ars, we should expect income from the IMF dollars, which could push the exchange rate towards the Ars 1.200 – an ideal time to resume investments in dollars.”
He also noted that “the negotiable obligations with positive qualifications of companies such as YPF – as YMCJD and YM34D – today offer internal return rates (IRR) higher than 8%, becoming attractive again after the recent fiscal amnesty that left the market little liquid above parity levels.” These two ON are qualified as “AAA.”
It should be noted that Horacio Marín, president and CEO of the country’s main oil company, announced plans to invest 35 billion dollars in the next five years in Vaca Muerta, with the aim of increasing oil exports by 10 billion dollars.
In conclusion, negotiable obligations emerge as a robust and strategic option for investors seeking protection in the face of exchange volatility and a specific opportunity to participate in the development of the Argentine energy sector. The combination of high yields in dollars, support of leading companies and the context of global energy transition make this instrument a privileged channel to support the growth of the country. As macroeconomic stability and regulatory clarity are strengthened, the ON is expected not only to gain weight in investment portfolios, but also play a key role in financing fundamental projects for the productive future of Argentina.
Financial Advisor
Source: Ambito
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