Caputo launches a bond maturing in 2029, and Milei celebrates it as 'the best of all time'
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Argentina has formally returned to the debt market after seven years. Minister of Economy, Luis Caputo, confirmed that the Treasury will conduct a new auction of the Bonar 2029N. This is a dollar-denominated bond maturing on November 30, 2029, with a 6.5% annual rate, semiannual payments, and full amortization at maturity. The operation will be carried out under local law, although both subscription and payment will be entirely in foreign currency.
Gracias a Caputo Argentina reingresó al mercado de capitales
When asked on A24 whether the country was imminently returning to the market, Caputo replied: "Yes, it should be announced in the next few minutes. We're coming back with a four-year bond, maturing in November 2029, with a six and a half percent coupon."
President Javier Milei celebrated the announcement on social media, highlighting the head of the Ministry of Economy as "the best of all time". This meant a direct endorsement of the minister at a key moment in the Government's financing strategy.
Why returning to the market matters
The placement of the Bonar 2029N takes place in a more favorable financial scenario for the country. This is because sovereign bond rates in dollars compressed significantly after the elections and the continuation of the economic program.
In this context, the Treasury seeks to refinance maturities without using reserves. This is something the IMF itself has been demanding to consolidate the Central Bank's accumulation process.
Caputo explained that the fiscal effort of recent months was conditioned by the lack of credit. "Argentina is a country that has no credit, so we've had to be canceling all the debt we've inherited," he stated.
Luis Caputo también expuso en ambos encuentros.
He added: "Typically, countries renew their debt. Since Argentina has no credit, we've had to pay. It's important to regain access to the markets because, by being able to refinance debt maturities, every dollar the Central Bank buys can now actually be accumulated."
The funds obtained will be used to partially cancel the principal maturities of the AL30 and AL29 bonds due on January 9, 2026. The total is US$4.1 billion. The strategy aims to organize the dollar debt profile and take advantage of the window of lower rates.
A market reopening: companies and provinces lead the way
The Treasury's reentry occurs in a context where dollar financing has already begun to reactivate for the private sector and several provinces.
In recent weeks, Argentine companies have issued more than US$3 billion in dollar-denominated negotiable obligations, mainly from the energy sector and Vaca Muerta. This is the largest monthly volume in a decade. Rates hovered around 8% annually, a key figure: it shows that the Government seeks to place debt at a lower cost than many leading companies.
This trend is also seen in the provinces:
Ciudad de Buenos Aires placed US$600 million at a 7.8% rate, with average terms of seven years. In addition, Moody's Local raised the City's rating to AA+.ar.
Córdoba issued US$725 million maturing in 2032 at a 9.75% annual rate.
Santa Fe closed a placement of US$800 million at nine years (2034) with an 8.10% coupon.
This scenario shows that voluntary markets have once again considered Argentina a viable issuer, after years of exclusion since 2018.
A structural shift for economic policy
Milei y Caputo logran continuar con su plan económico para el crecimiento argentino
The return to the capital market is a turning point for Javier Milei's economic program. It allows the country to avoid using reserves, support Central Bank accumulation, smooth the maturity profile, and rebuild the dollar debt curve under a credible framework for investors.
For a country without access to credit for years, this move represents a significant leap. The President's public endorsement, meanwhile, encapsulates the mood at Casa Rosada. Milei states that Caputo is "the best of all time".
