The Government’s objective was to extend the duration of financial commitments, given the significant burden of maturities scheduled for January. According to analyst calculations, the maturities amounted to $14 billion.
He Ministry of Economy, in conjunction with the Ministry of Finance and the Ministry of Financemade official the carrying out of a voluntary exchange of a Treasury bill in pesos. This measure was implemented within the framework of the Treasury debt tender carried out on Wednesday and was already published through Joint Resolution 65/2024, in the Official Gazette.
In the letter, the Government assured that it considered “convenient” to offer holders of the Treasury Bill capitalizable in pesos with maturity on January 31 (S31E5) the subscription of the Treasury Bill capitalizable in pesos with maturity on May 30, 2025 or the Treasury Bill capitalization in pesos with maturity on October 31, 2025 or the National Treasury Bond in pesos maturing on January 30, 2026.
The Government’s objective was to extend the duration, due to the large commitments it has in January. The objective was to begin to decompress part of that month’s maturities, which amount to $14 billionaccording to data from the Congressional Budget Office and Personal Investment Portfolio, and about $16 billion, according to estimates by the consulting firm 1816 and Adcap Grupo Financiero.
Luis Caputo in Salta CAPTURE
In that operation, holders who entered the conversion could choose to exchange their holdings for three Lecaps of longer duration as of May 2025, October 2025 and January 2026. Quirno announced that In the exchange, an effective value equivalent to $660,000 million was awarded, which implied a participation of only 19.47% of the total eligible.
In any case, the official highlighted that a “weighted average life extension of 0.55 years” of that debt was achieved. In addition, he stated that, since the Lecap granted in exchange cut to a weighted annual effective internal rate of return (TIREA) of 38.84%, this meant “a reduction of 51.28 percentage points from the 90.12% that was the TIREA of emission of the instrument S31E5”.
In detail, the Holders who entered the exchange obtained $387,000 million in Lecap as of May 2025 at a TEM of 2.88%, $164,000 million in the Lecap as of October 2025 at 2.74% TEM and $113,000 million in the Lecap as of January 2026 at 2.65% TEM. All with higher yields than the closing of the fixed rate curve in the secondary market would suggest.
The issuance of bills for exchange
National Treasury bill in pesos
- Amount: $5 billion
- Issue date: December 16, 2024.
- Expiration date: October 31, 2025.
- Denomination, subscription and payment currency: pesos.
- Original issue price: at par.
- Amortization: full at maturity.
- Interest: will pay interest at a monthly effective rate compounded monthly until the maturity of the instrument, which will be determined in the tender. Interest will be calculated based on months of thirty (30) days and years of three hundred and sixty (360) days (30/360).
- Ownership: Global Certificates will be issued in the name of the Central Registry and Settlement of Public Liabilities and Financial Trusts (CRYL) of the Central Bank of the Argentine Republic (BCRA), in its capacity as Registration Agent of the Bill.
- Attention to financial services: payments will be made through the BCRA through transfers of funds into the respective cash accounts held by the holders of registration accounts in said institution.
- Applicable law: Argentina
National Treasury Bond in pesos
- Amount: $5 billion
- Expiration date: January 30, 2026.
- Denomination, subscription and payment currency: pesos.
- Original issue price: at par.
- Amortization: full at maturity.
- Interest: will pay interest at a monthly effective rate compounded monthly until the maturity of the instrument, which will be determined in the tender. Interest will be calculated based on months of thirty (30) days and years of three hundred and sixty (360) days (30/360).
- Ownership: Global Certificates will be issued in the name of the CRYL of the BCRA, in its capacity as the Bond Registration Agent.
- Applicable law: law of the Argentine Republic.
Source: Ambito
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