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Argentina Seals $3 Billion Repo to Meet Imminent Bond Payments

Caputo argues the cash will replace Friday’s maturities rather than add net debt.

Overview

  • The central bank executed a US$3,000 million repo to help cover roughly US$4.2–4.3 billion in sovereign bond payments due Friday.
  • Terms include a 372‑day maturity with interest at SOFR plus about 400 basis points, implying an approximate 7.4% annual cost.
  • The operation used BONARES 2035 and 2038 as collateral and involved six international banks after attracting about US$4.4 billion in bids.
  • Despite oversubscription, the bank left the awarded amount at US$3,000 million instead of increasing the size of the deal.
  • Economy Minister Luis Caputo said the move “does not imply new debt,” a message echoed by President Javier Milei, while analysts noted it signals market access but is a liquidity roll rather than a reserves boost.