Although the
dollars in the bank or under the mattress
protect Argentines from the loss of value of the peso, in the context of the inflation that the United States is experiencing (6.5% in 2022)
they are losing purchasing power
.
The question of many small savers, most of them with a conservative profile and not very fond of financial risk, is
what to do with those bills
so that they give some return.
In the crosshairs of this group, banks and fintech have come out in recent days to offer their clients a new ON (Negotiable Obligation or bond) from IRSA, the real estate company of the Elsztain family, which is listed on the Stock Exchange.
You can enter with
a minimum payment of US$ 100
(you have to put dollars or buy MEP dollars) and the deadline to participate is Thursday at 2:00 p.m.
Technically, IRSA will issue an initial bond of US$15 million (it can be extended up to US$90 million) that
will mature on March 25, 2025.
Interest will be paid every six months.
The capital will be returned when the debt matures, which will be on March 25, 2025 (26 months).
It is not yet known what the rate will be because it will be defined in the auction on Thursday, but analysts at Invertironline (IOL) estimate that it will be around 8% per year.
In turn, the company reserves the right to declare the tender or the apportionment of the participating investors void.
"Given the nature of the investment, it is an instrument designed to mature in two years. Therefore, when deciding to participate in the tender, the investor must consider the risk that he is willing to assume for the expected return, taking into account consideration the financial statements of the company and the prospects of the business", they indicated in IOL.
According to the investment site, IRSA has a history of issuing both nationally and internationally.
During fiscal year 2022 IRSA completed debt issuances for US$58.1 million and restructuring of maturities after the exchange of the Class 2 ON in July 2022 with acceptance of 66%, added to capital contributions during fiscal year 2021 for US$42 .5 million.
However, there are warnings that savers have to take into account.
The company is slightly
exposed to the risk of currency mismatch in the local market
because it generates funds in pesos and its debt is mainly concentrated in dollars.
However, this risk is partially mitigated by the strong correlation between the market value of its assets (offices, buildings) and the value of the dollar and, at the same time, by having
rental income denominated in dollars.
On the other hand, during 2023 IRSA will have to face debt maturities for an amount greater than the access it has to the official exchange market, which could cause new debt swap operations.
Sales in shopping malls are highly linked to the level of activity and interest rates.
Finally, analysts highlight that the ON is governed by local law, unlike other IRSA ONs that are issued under United States law.
NE
look also
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