The return of Treasure The introduction of foreign currency investments – something that had not happened in eight years – left a bittersweet taste in the mouths of financial players. After the initial enthusiasm, the reading of the internal rate of return began Bonar 2029N raised doubts and caused a bearish start for both stocks and dollar securities.
Global bonds and the impact of new issues
On Wall Street, Government bonds are declining across the board. He Global 2030 Income around 0.3%, followed by Global 2038, that adapts 0.2%.
The market prudently adopted the issuance of Bonar 2029N, a four-year local bond that allowed it to raise $1 billion. The coupon remained at 6.5% and the IRR on the cut-off price rose to 9.26%, a higher level than estimated by the economic team.
Nevertheless, the demand was surprising: lThey left offers for more than $1.4 billion. with the participation of more than 2,500 investors, partly aided by the regulatory changes made in recent days.
Stocks: A red start for the S&P Merval
The leading index of the Buenos Aires Stock Exchange falls by 0.5% up to 2,997,971.40 points, while its version in dollars falls by 0.8% to 1,996.65 units. The wheel shows mixed results with local businesses: Shemale leads the increases at 1.4%, while Aluar marks the largest drop with a cut of the 23%.
ADRs with different movements in New York
The behavior of Argentine companies listed on Wall Street is also heterogeneous. Supervielle group try to recover and Advances 1.2%while Cresud returns ground with a Decline of 1.4%.
Argentina resumes global lending and the city recalculates the dollar’s next rise
l official dollar is serving on the board of Banco Nación this Thursday, December 11, at $1,460. In the wholesale segment, the currency is trading at $1,437.5. As for financial dollars, cash with settlement is selling for $1,497 (+0.1%) and the MEP is at $1,471 (-0.1%). Finally, in the informal segment, blue is trading at $1,450.
Yesterday Argentina reopened a door that had remained closed for almost eight years: access to voluntary funding in dollars. The placement of the new Bonar 2029issued by the Ministry of Finance under local law and with a bullet maturity, marked a symbolic and financial return to international markets in a context where reserves remain stressed and the hard currency payment schedule requires immediate solutions.
The $1,000 million operation was closely followed by banks, funds, companies and analysts as it not only implies the appearance of a new dollar instrument, but is also a sign of how the dollar and local debt could develop in the coming months.
The bonus was designed with a 6.5% annual coupon, but its placement was below average, increasing the effective return to a Nominal rate of 9.26%. That difference sparked a profound debate in the city about the real cost of re-indebtedness after so long and what the global market is reading about Argentina’s risk. But beyond the technical analysis, the operation showed that there is a window, albeit a small one, for the country to re-engage with private investors in dollars.
Another central aspect was that received demandwhich went beyond what was originally intended. With offerings for around $1.42 billion and participation from more than 2,500 investors, the placement showed that there is interest in short, relatively simple and government-backed securities. For the government, That meant not only raising the necessary dollars, but also confirming that a new instrument could be offered at a lower interest rate than the current bond curve under local law.
The primary use of funds was a central element of the strategy. The Treasury will use the proceeds for the bulk of the financing AL29 and AL30 expire on January 9thfor about $1.27 billionin addition to easing part of foreign exchange obligations next year. For a market accustomed to viewing the central bank as the sole source of dollars, this move was interpreted as an attempt to demonstrate real funding capability.
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