New USD Denominated Bond for Importers

Following the measures announced regarding the payment of imports of goods and services, on December 13, 2023, the Argentine Central Bank (BCRA) issued Communication “A” 7918, creating the new ‘Bonos para la Reconstrucción de una Argentina Libre’ (BOPREAL) bonds. Only importers of goods and services may subscribe these USD bonds, and only for up to the amount of their outstanding import transactions.

The bonds—which will mature no later than October 31, 2027—may be subscribed in ARS at the official exchange rate (Communication “A” 3500) of the business day prior to the auction date and will be fully amortized in USD at the date they mature or in ARS, through a partial amortization schedule, as defined in due course.

The bonds will accrue interest at a maximum annual rate of 5%, which may be payable quarterly or semiannually in USD.

It should be noted that the bonds may have an early redemption option in favor of the holders, within the terms and in the proportions the BCRA will establish. The redemption may only be made for dollar-linked ARS.

The BCRA is expected to detail, when announcing the auction, some aspects of the bonds, such as the interest rate, the amortization manner, their negotiation in the secondary market, and if they may be used as collateral for repo transactions.