ON investment boom: what they are and why they can be a good way to dollarize savings

In an increasingly intervened market, the options to invest and become dollarized without risks are scarce.

Companies take advantage of market appetite and go out to issue debt to boost their operations and achieve a good response from investors.

This week, three large companies announced the sale of dollarized bonds to the market:

These are

, bonds (debt) issued by companies, which

.

Unlike Argentine government sovereign bonds, it is

that attracts investors' attention : the companies that offer this type of instrument generally have

For investors, they are also a way to invest in companies that are of interest to them,

.

"The current valuations of shares and sovereign bonds are no longer as attractive as they were a few months ago. For this reason, the ONs allow 'evading' the macroeconomic inconsistencies faced by the Treasury and the Central Bank and

," they explained in Delphos.

The ON

.

Also, as happened with the titles that went on the market this week, they can be made in

format , that is, that payments are made in pesos, but

"On the one hand, hard-dollar corporate titles (in dollar bills) provide some protection from the high volatility suffered by financial exchange rates. On the other hand,

offer the possibility of

and, in turn, allows

currency

 ", they added in Delphos.

This Wednesday, the renewable energy generator Genneia placed Negotiable Obligations (ON) for the equivalent of US$73 million, an amount higher than what had initially been raised by the company, which planned to issue US$60 million.

"These NOs will enter the panel of Social, Green and Sustainable Bonds (SVS) of ByMA, the local stock market that brings together the main players in the capital market and is the seventh instrument of the company qualified as a green bond. In this way , Genneia has become the main issuer of these financial instruments," they explained.

The bonds were tendered at a fixed rate of 4.5%, which will be paid to investors

, with a duration of 120 months (10 years) and with principal maturing in 13 semi-annual installments beginning in month 48 of issuance.

Meanwhile, YPF Luz, the electric energy leg of the state oil company, placed another US$ 150 million on Wednesday in two negotiable obligations.

The tender showed the appetite of investors for this type of title: the company

, double what they were looking for.

The bonds issued are of relatively short duration.

One expires next year, while the rest has an expected maturity of 24 months.

With this capital, the company will build its fourth wind farm.

Investors who did not participate in these auctions can access the negotiations in the

, which are done every business day during market hours. 

NE

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