The group of Bonistas Ad Hoc, led by the black funds Blackrock and Ashmore, who held the strongest stances in the negotiation for debt restructuring, confirmed this morning that they adhere to the agreement reached on Tuesday.
“The Ad Hoc Group of Argentine Bondholders confirms its support for the proposal to restructure Argentina’s outstanding debt announced by the Argentine Republic on August 4, 2020,” said the creditor group advised by the white & Case LLP legal firm. These are some of the largest investment funds in the world, with which the Argentine government negotiated harshly. To a greater extent, its portfolio holds global bonds issued after 2016 during the administration of Mauricio Macri.Blackrock and its allies played a decisive role in defining the negotiations, with the submission of counteroffers and the sum of wills presented by a closed bloc to the government. This meant facing the official position on several occasions.
“The agreement of principle reached is the result of constructive participation by all parties. The proposed restructuring will provide Argentina with additional resources to help the Government meet the challenges facing the country by providing significant economic relief totaling $37 billion over the next nine years (2020-2028) and reopening the country’s access to capital markets. In addition, the agreement provides for changes to the legal framework that reflect some recent improvements in the documentation of sovereign bonds,” the statement said.
“Our group is made up of institutions that have invested in Argentina on behalf of millions of people around the world who save for their retirement. We are trustees of our clients and seek results that benefit all stakeholders, including the countries in which we invest. As such, and as long-term investors in Argentina, our goal has always been to achieve a consensual restructuring that offers the best opportunity for the country to forge a sustainable path to a stronger economic future and inclusive growth in the post-COVID world,” they concluded.
The statement provides a list of funds that confirmed their support for the debt agreement and are part of the Ad Hoc Group. This is AllianceBernstein, Amundi Asset Management, Ashmore Investment Advisors Limited, Ashmore Investment Management Limited, Autonomy Capital (Jersey) L.P., Ayres Investment Management LLP, BlackRock Financial Management, Inc. and its affiliates, BlueBay Asset Management LLP, Contrarian Capital Management L.L.C, Management & Research Co., Invesco Advisers, Inc., T. Rowe Price Associates, Wellington Management Company LLC and Western Management Asset Llc LLC.
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