Another success for Toto Caputo: the Government raised US$100 million and completes the quota for the Bonar 2028

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.

By completing this quota, the Government advances its goal of securing the necessary resources to honor commitments without generating greater pressure on the Central Bank's reserves. The operation allows obtaining foreign currency from local investors who bet on these securities.

In this way, it seeks to maintain stability on the financial front while managing pending payments. The results of the auctions show that, despite the high demand, the Treasury decided to award only the portion necessary to fulfill the established plan.

Details of the Operation and Perspectives

The Secretariat of Finance highlighted that today's auction awarded exactly US$100 million. This figure adds to what was previously placed, thus closing the cycle for the AO28. Investors responded strongly, presenting bids for almost seven times the awarded amount.

This type of dollar-denominated instruments is attractive for those looking to preserve value in the local market. The original 6% rate of the bond adjusts in the secondary market, and the auction reflected the current yield conditions.

With these actions, the economic team continues to focus its efforts on managing debt maturities in an orderly manner. It is not just about this July payment, but about maintaining a sustainable payment profile in the medium term.

The auction reinforces the Government's capacity to operate in the domestic debt market and avoids exits to international markets at times when external conditions are not the most favorable. In this way, the accumulation of reserves for the challenges ahead is prioritized.