The Ministry of Economy successfully completed the auction of the Bonar 2028 (AO28) on Monday, a dollar-denominated bond that serves to obtain foreign currency in the local market. In this way, the Government took a key step in its plan to gather the necessary funds and meet the debt commitments due in July.
According to the Secretariat of Finance, US$100 million of nominal value was awarded. This occurred despite the fact that the bids received were much higher, reaching a total of US$691 million. With this operation, the total quota of US$2.000 million for this instrument was closed.
The placement was made with a cut-off price of US$967 for every US$1,000 of nominal value. This implies an annual nominal rate of 7.56% and an effective annual internal rate of return of 7.83%. There were 325 bids in total, showing significant interest from local investors.
In the previous auction, held on Friday, another portion of the same bond had already been awarded. Now, with the full quota, the Treasury has more tools to strengthen its reserves.
Strategy of the Economic Team
This move is part of Minister Luis Caputo's strategy to obtain dollars without having to resort to international markets, where rates remain high for Argentina. The Bonar 2028, along with the Bonar 2027, has consolidated in recent weeks as one of the main options to attract foreign currency funds from the domestic market.
The context is demanding because on July 9, the Treasury must face a significant payment to bondholders of around US$4.300 million. This is one of the most relevant maturities of the year and requires careful preparation.
