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Anses is already the main buyer of bonds issued by large companies

2021-07-24T13:31:45.141Z

In silence, it became the main investor in YPF and PAE issues. Bloomberg 07/24/2021 9:45 AM Clarín.com Economy Updated 07/24/2021 9:45 AM Argentina's largest investment fund, which is part of ANSeS, the state retirement and pension administrator, is quietly becoming the largest buyer of long-term local company debt . Anses' fund management arm bought about 80% of YPF's recent dollar-tied local bonds from a unit of Albanesi and Pan American Energy, known a



Bloomberg

07/24/2021 9:45 AM

  • Clarín.com

  • Economy

Updated 07/24/2021 9:45 AM

Argentina's largest investment fund, which is part of ANSeS, the state retirement and pension administrator, is quietly becoming

the largest buyer of

long-term local

company debt

.

Anses' fund management arm bought

about 80%

of YPF's recent dollar-tied local bonds from a unit of Albanesi and Pan American Energy, known as PAE, according to people with knowledge of the matter who asked not to be identified. because the fund's participation in the auctions is private.

The bonds also represent one of the longest-term local issues by Argentine companies in the last two years, given that

PAE's dollar-linked security expires in 2031 and YPF's in 2032.

The

Anses

Sustainability Guarantee Fund

, which reports its public holdings on a quarterly basis, is partially purchasing these bonds to

comply with a local regulation known as “subsection L”,

which establishes that it must allocate 5% of its total assets to

investments related to infrastructure by the end of 2023

, up from 2% today.

Oil and gas and utility company bonds, which are considered

“production projects,”

conform to that standard.

That means

the fund manager would need to invest an additional $ 2 billion over the next two and a half years

to meet its goal, one of the people said.

The value of Anses' total assets was

US $ 40 billion

in the first quarter.

Officials have started talks with companies like

Vista Oil & Gas

to encourage them to issue similar debt this year, according to two people close to the negotiations.

Representatives for Anses and YPF did not immediately respond to a request for comment.

An Albanesi spokesperson declined to comment on Anses' involvement, but said the bonds will finance an expansion of its power plant in Ezeiza.

A PAE spokesperson said several institutional investors participated in the sale, but declined to specify the proportion.

In Vista they didn't want to talk either.

Other local fund managers were

reluctant to buy the bonds

due to the relatively long maturity dates, according to Mariano Calviello,

Banco Galicia's

head portfolio manager

, who said

Galicia was not involved in any of the sales

.

Bonds maturing in more than 24 months are considered

too volatile

, especially amid the economy's poor growth prospects and

ahead of the

November legislative

elections

, he added.

Almost a year after the country restructured $ 65 billion in foreign debt, its sovereign bonds remain under pressure.

The economy is preparing for its

third year of recession

and Argentines face inflation exceeding 50% and high unemployment rates.

Recent sales that Anses participated in include:

- A US $ 384 million bond from Argentina's main energy producer, YPF, maturing in 2032.

- A US $ 260 million bond sold by Pan American Energy due 2031

- A US $ 99 million bond sold by Generación Mediterránea, a unit of power generator Albanesi.

NE

Look also

The Government extended the agreement with the provinces to refinance debts with the ANSeS

BICE and AnSes advance in projects for the economy

Source: clarin

All business articles on 2021-07-24

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