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First bonds launched to cancel importers' debt for up to US$ 750 million

2023-12-27T13:54:07.249Z

Highlights: First bonds launched to cancel importers' debt for up to US$ 750 million. It is a long-term dollar bond, which pays a rate of 5% per annum. The Government offers several sweeteners. In the industry, a significant subscription is expected from automotive terminals, which depend on the import of auto parts from Brazil. The expectation in the financial institutions is that the BCRA will place between US$ 6,000 and US$ 12,000 million, a third of what they expect in the Government.


It is a long-term dollar bond, which pays a rate of 5% per annum. It is designed for large companies. The Government offers several sweeteners


The government will launch this Wednesday and Thursday the first series of bonds in dollars for importers to cancel debts with their suppliers. The tender will be for a maximum amount of US$ 750 million and to participate it will not be necessary to be registered in the debt registry released this Tuesday, according to official sources.

In a scenario of negative reserves and strong external debt payments ahead, the objective is to begin to reduce the accumulated liabilities for imports, which today exceed US$ 60,000 million, according to official calculations, while releasing payments for new imports with staggered terms of 30, 60, 90 and 120 days.

The Central Bank has already warned that the bond will be issued for different maturities, will accrue an interest rate of 5% per year, can be paid in pesos and there is the possibility of early redemption. In the industry, a significant subscription is expected from automotive terminals, which depend on the import of auto parts from Brazil.

"There will be underwriting from the big players, many have to dismantle positions," they said in the sector, while the banks assure that they will "wait and see". The expectation in the financial institutions is that the BCRA will place between US$ 6,000 and US$ 12,000 million, a third of what they expect in the Government.

The Ministry of Economy, the Central Bank and the AFIP adjusted the last details between last Friday and Tuesday. Through a decree, communications and a resolution, they defined that companies that subscribe to the bonds in pesos will be able to use them to pay tax and customs debts.

The AFIP made official on Tuesday that the exchange rate of the bonds to cancel these obligations will be the highest between the official dollar ($806) and the MEP ($939). It is one of the many "sweeteners" to capture the pesos of large companies, in the midst of strong tug-of-war for the dollars that the BCRA began to buy.

According to EcoGo, the subscription of bonds prior to January 31, 2024 will be exempt from the PAIS tax, subscribers for 50% or more of the outstanding debt before December 31, 2023 will be able to buy dollars at the official value from next February for 5% of the subscribed amount and also companies that make sales of the bond in the country or abroad.

"Most people are sure to subscribe because it is the only possibility to access the MULC (official exchange market) and the bond, in addition to ensuring access and dollars over time, has a condition that allows those who subscribe to access a percentage to pay small debts," they said at an automotive terminal.

On the other hand, the Central Bank will maintain the restriction of access to cash with settlement (CCL) to importers who do not buy the bond. The idea is that demand in that market does not put pressure on the exchange rate gap. Whoever buys the bond will be able to get dollars on the secondary market or wait for the bond to mature

According to Pablo Repetto, director of Aurum, importers who buy this bond, if they needed to get the dollars quickly by selling them in the market, would receive them at an exchange rate of between 1,500 and 1,800 pesos. "There would be better options for importers if the cross-restriction that prevents them from accessing the CCL did not remain in place," he said.

Caputo already pushed for a similar measure in 2016, when he was finance secretary and launched BONAR 16 for importers to cancel debts. The bond, which offered a 6% rate and monthly repayments, had a 20% subscription. The difference is that the commercial debt was close to $5 billion and the clamp had been lifted.

What is the menu of bonds that the Central Bank will offer to cancel the debt with importers.

Bonuses

Given the "impossibility of providing a single short-term solution for all importers," the Central Bank is going to offer three types of securities of the Bond for the Reconstruction of a Free Argentina (Bopreal). The first series, which launches this Wednesday, will mature on October 31, 2027 and have an annual rate of 5%. It will be tendered twice a week until the end of January.

Series 2, maturing on June 30, 2025, will not accrue interest and provides for the repayment of principal in 12 consecutive monthly installments from July 2024. It cannot be traded on secondary markets, but it will be transferable to third parties.

Series 3 matures on May 31, 2026, with a rate of 3% and will be amortized in three quarterly installments from November 2025. It will be able to be traded both on the secondary market and to be transferred to third parties.

The last two series, in turn, will be offered once the commercial debt registry is prepared to determine the maximum amount of dollars available. This record will remain for 15 days.

NE

Source: clarin

All business articles on 2023-12-27

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