New BOPREAL Bond Series

In line with the measures adopted by the Argentine Central Bank (BCRA) to advance the regularization of commercial and financial debts with foreign counterparties—including the issuance of previous series of the Bonos para la Reconstrucción de una Argentina Libre (BOPREAL) and the easing of access to the foreign exchange market for settling external payments—the BCRA announced through Communication “A” 8233 that it may offer a new series of BOPREAL – Series 4.

This new series will be available to legal entities with outstanding commercial debts arising from the import of goods and/or services incurred before December 12, 2023, or with outstanding profit and dividend payments due to non-resident shareholders. The bonds may also be subscribed by debtors with overdue capital and interest payments to related parties, if such payments are subject to the BCRA’s prior approval for accessing the FX Market.
 

BOPREAL bonds may be subscribed for up to the amount outstanding as of the subscription date in relation to:
 

1. compensatory interest due by July 4, 2024, on commercial debts related to the import of goods and services with related parties,
2. compensatory interest due by December 31, 2024, on financial debts with related parties,
3. principal amounts due on financial debts with related parties.
    

BOPREAL bonds will be subscribed in ARS, at the reference exchange rate published by the BCRA pursuant to Communication “A” 3500, applicable on the auction date (or the previous business day, as defined). The instrument will have a maximum maturity date of October 31, 2028.

The bond will be fully amortized in USD, either through a single bullet payment at maturity or through partial amortizations, as the BCRA determines. Additionally, early redemption options in favor of bondholders may be included, exercisable for amounts in USD-linked ARS at par value, within the terms and proportions the BCRA will establish. To that end, a strip mechanism over the bond's face value is expected to be implemented.

BOPREAL Series 4 will accrue interest at a maximum annual rate of 3%, to be defined in the auction announcement. Interest payments may be made quarterly or semiannually in USD.

Auctions may be carried out under a single-price or multiple-price mechanism. The auction announcement will also define whether the instruments will be tradable in BYMA, MAE, and/or Euroclearable markets.