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Argentina Pays $4.2 Billion Bond Maturity Using Repo and Privatization Proceeds

Markets now focus on a Jan. 14 auction to refinance 19.3 trillion pesos in Lecaps maturing Jan. 16.

Overview

  • The government covered the payment with Treasury balances, about $2.3 billion from the Comahue dam privatizations, and roughly $1.2–$1.3 billion drawn from a $3 billion BCRA repo.
  • The central bank’s repo runs about one year at SOFR plus 400 basis points (near 7.4% annually) and involved BBVA, JP Morgan, Deutsche Bank, Goldman Sachs, Bank of China and Santander, with total bids near $4.4 billion.
  • Roughly $692 million of the $4.218 billion payment was intra-public sector, limiting the net dollar outflow to private holders.
  • The Finance Secretariat will publish its instrument menu on Jan. 12 ahead of a Jan. 14 sale to roll 19.3 trillion pesos in Lecaps due Jan. 16, with OPC estimating about half of that stock is held by state entities.
  • BCRA reported net reserve purchases of about $218 million in the first week of January, while analysts caution the recent calm reflects Treasury dollar sales and short-term financing; remaining 2026 dollar obligations are estimated near $8.8–$9.0 billion, rising to about $23 billion in 2027.