The government announced that Argentina has gained access to international debt markets.

The Government of Javier Milei, through the Ministry of Economy, aims to attract foreign currency from foreign investors and, in this context, will launch this week a fixed-rate peso bond that can only be acquired by international funds using dollars. This will be a security maturing in May 2030, with a total value of up to USD 1 billion.

The Secretary of Finance, Pablo Quirno, confirmed that it will be a Bonte that can be subscribed in foreign currency, and its placement is scheduled for this Wednesday, as part of the already scheduled peso debt auction.

The dollars obtained through this operation will be used to strengthen the Central Bank's reserves and, in accordance with the agreement with the IMF, may be counted as part of the accumulated dollars required to meet the quarterly targets.

This instrument differs from the traditional dollar-linked bond, since it involves two different currencies. In bonds linked to the exchange rate, the investor provides pesos and receives pesos. In contrast, in this new issuance, the funds must disburse dollars and at maturity will receive pesos.

Additionally, the Ministry of Economy emphasized that the security will be governed by local legislation, and not under New York jurisdiction, as is usually the case in international debt issuances.

Caputo's message

"Argentina once again gains access to international markets, to refinance principal of debt in local currency. This is something that the vast majority of countries do as a matter of course, but for Argentina it was not possible, given the inherited economic turmoil," stated the Minister of Economy, Luis "Toto" Caputo, on X.

"It is important to highlight that this operation doesn't imply an increase in gross debt, nor in net debt. Only an increase in the level of the Central Bank's dollar reserves and a significant extension of the duration of local currency debt," stated the head of the Ministry of Economy.

Meanwhile, the Secretariat of Finance detailed that this week the Government will have to face peso maturities totaling 8.55 trillion. The new bond will also include an early repurchase (put) clause that will allow holders to exercise it in May 2027, which means that the Treasury will be required to activate an automatic buyback if the investor decides to execute it.