What are BOPREALs?

The Bonds for the Reconstruction of a Free Argentina (BOPREAL) are securities issued by the Central Bank of the Argentine Republic in U.S. dollars, intended for importers of goods and services with outstanding payment obligations for operations with customs registration and/or services effectively provided prior to December 12, 2023.

These instruments were designed to offer an orderly, transparent and indiscriminate solution to the historic increase in foreign trade debts, originated in a context of exchange rate delay and lack of foreign currency, which makes it difficult to pay these obligations immediately.

Instrument Features

The BOPREALs are structured in three series of short, medium and long term. Its main characteristics are presented in a comparative table (maturity, subscription currency, payment currency, amortization scheme, interest, interest payment, transferability, quotation and other specific conditions).

Series 1

– Title with a longer duration, with final maturity on October 31, 2027.

– Accrue an interest rate of 5% nominal per annum, calculated on a 30/360 basis.

– As of March 1, 2024, it is separated into four independent instruments (Series 1A, 1B, 1C and 1D), which maintain the original conditions and add early redemption options in favor of the holder (in pesos, at the reference exchange rate on the day of exercise) and the possibility of being used for the payment of taxes in specific periods, according to the subseries.

– Subscriptions made until January 31, 2024 have additional benefits: they are not taxed by the PAIS Tax and enable an additional 5% of access to the foreign exchange market, as long as the subscription represents at least 50% of the importer’s commercial debt.

Series 2 3

– They have shorter terms of access to foreign currency, but they do not have some special benefits of the Series 1 (such as early redemption in favor of the holder and use for tax payment).

– The amount of issuance will be more limited, with award mechanisms that will limit the subscription capacity, providing for prioritizing the participation of SMEs or establishing nominal quotas per company.

– The definition of these mechanisms will use information from the Registry of Foreign Commercial Debts prepared by AFIP and the Ministry of Commerce.

About the Importer’s Guide

The guide explains, in a question-and-answer format:

– Who can subscribe to the BOPREALs.

– How the eligible amount is determined based on the debts recorded.

– The procedure for participating in tenders through financial institutions.

– The benefits and restrictions associated with each series, including redemption options, use for tax payments, PAIS Tax treatment and access to the foreign exchange market.

The objective is to provide importing companies with a clear reference to evaluate these instruments and use them for the regularization of their trade obligations abroad.

Regulatory framework and related information