On December 22, 2023, the Central Bank of the Argentine Republic (“Central Bank”) approved Communication “A” 7925, along with Decree 72/2023, to regulate the subscription by importers with commercial debts to foreign suppliers as of December 12, 2023, to the BOPREAL bonds issued by the Central Bank.
The bonds issued by the Central Bank can be subscribed to by importers to channel the payment of commercial debts (imports of goods and services). Additionally, they can be used to settle tax and customs obligations (subject to an overall limit). Three types of bond series (Series 1, Series 2, and Series 3) will be issued, each with different terms of issuance (maturity date, amortization date, interest rates, and trading modes).
Additionally, importers of goods and/or services who subscribe to the bonds (i) for the longest term offered by the Central Bank before December 31, 2023, and (ii) for an amount equal to or greater than 50% of the total outstanding eligible debts, may access the Foreign Exchange Market from February 1, 2024, to settle the accumulated debt stock prior to December 13, 2023, for a total amount equivalent to 5% of the subscribed amount.
All bonds will be transferable, listed for quotation and trading on BYMA/MAE, and can be traded through Caja de Valores and Euroclear, except for the Series 2 bond, which is transferable but cannot be traded or quoted on the secondary market. In addition, Series 1 and Series 3 bonds will accrue interest of up to 5% and 3% nominal annual, respectively. Furthermore, for the settlement of the bonds, they must be deposited in CRyL, which will act as the Clearing and Registration Agent.
It was also established that sales with settlement in foreign currency of the securities acquired in the primary auction will not restrict access to the Foreign Exchange Market for conducting other transactions. In this way, a secondary market for these bonds is anticipated, and they will be offered by the Central Bank starting from December 26, 2023.
