Argentina runs conversion exercise for Treasuries due 2024

Chicago, March 12 – Argentina ran a local bond exchange to extend the maturity dates on a number of Treasury bills maturing throughout 2024, according to press releases.

The Treasury bills were denominated in both dollars and pesos.

The ministry of finance said it accepted 77% of the $65 billion of Treasury bills that were subject to the offer.

The private sector contributed approximately 17.5% of the holdings, while the public represented the majority of participation.

Through the exercise, the average life of the maturity profile was stretched to three years from 0.46 years.

Interest savings constitute a $550 million reduction, or 0.1% of GDP.

In exchange for the tendered securities, investors are receiving a basket of new zero-coupon Treasury bonds in pesos with adjustments. The four bonds in the basket expire Dec. 15, 2025, Dec. 15, 2026, Dec. 15, 2027 and June 30, 2028. The earlier dated bonds are weighted heavier.

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