translated from Spanish: Economy to tender bonds for $750 million on Monday

The Ministry of the Economy will on Monday hold a tender for bonds of US$750 million, with the aim of continuing to remove pressure on the foreign exchange square and contain the quotes of the liquidation and the dollar stock exchange.

It is to be expected that this trade will be exploited by investment funds such as PIMCO and Templeton, which intend to abandon their positions in pesos and have been pushing on the value of the US currency. The reception of the offers will start at 11:00 and end at 17:00 today. The Palace of Finance provided that offers will be received for the bond in 2030 dollars (AL30) for up to $500 million and for 2035 (AL35) for up to $250 million. For its part, the one counted with liquidation, the operation to take foreign exchange abroad through the purchase of bonds, added on the last Friday more than 2 percent, up to $150.81. In the same sense, the dollar stock market also showed upward trend and reached $143.32.

The Ministry of Finance clarified that this tender was not aimed exclusively at Pimco and Templeton, which arrived during the management of Mauricio Macri and then became trapped in the country without being able to leave in their original currency. On the market they believe that the Government should above all continue with the strategy of giving greater signals in fiscal and monetary matters to bring down the dollar price. In this way, the offers submitted must indicate the amount of Original Nominal Value (VNO) in u$s to be subscribed from the AL30 bonus and/or the AL35 bonus, and the price in pesos of each, which must be expressed for each VNO or $100 with two decimal places. There will be a single competitive tranche for each Eligible Title and offers will be limited to a minimum amount of VNO or $1 and a maximum of $10,000,000 per offer, each participant may submit one or more offers within these limits. Before 18:00 on November 11, participants bidding must transfer the total accepted Eligible Securities from their accounts at the Central Register and Settlement of Public Liabilities and Financial Trusts (CRYL) of the Central Bank to that of the Ministry of Finance in that entity.
“If any of the participants fail to submit the Eligible Titles, a daily default penalty equivalent to the 1-day active pass rate published daily by the BCRA will apply,” Economía said.

Finally, on Thursday, November 12, cryl will credit the New Instruments to participants who did not fail to comply with the delivery of eligible securities to each participant’s accounts at that entity and will begin debiting the penalty in cases of non-compliance.
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Original source in Spanish