The first auction of the dollar-denominated securities called BOPREAL Series 1 which stands for Bond for the Reconstruction of a Free Argentina in Spanish has been announced in Communication B 12697 on December 22, 2023, and concluded today.
This is part of a periodic auction program which is expected to take place until the end of January 2024, as stated in the press release dated December 22, 2023. In line with the press release, the BCRA has held the first auction of BOPREAL Series 1 before obtaining the relevant information from the registry of foreign commercial debts. This measure seeks to let importers make an early payment of their commercial debts from imports of goods and services that occurred through December 12, 2023, as under Communication A 7917. Once the registry of foreign commercial debts has been analyzed, the BCRA will establish the maximum issuance amounts and set out award conditions for BOPREAL Series 2 and Series 3, which are expected to be auctioned from February 2024.
Thirty four bids were submitted and awarded for a total nominal value of USD68 million. Participation is expected to increase as information about the operational procedures and required documents for subscription is released. In this regard, it should be noted that Series 1 may in no case exceed the total aggregate issuance of USD5,000 million (nominal value) determined for Series 1A, 1B and 1C. These series may be used for discharging tax and customs obligations, as set forth in Resolution 5469/2023 of the Federal Administration of Public Revenue (AFIP, in Spanish) and Executive Order 72/2023.
The BCRA has published today the Communication A 7935 which establishes the extension until January 31, 2024 of the benefit to access the Free and Single Foreign Exchange Market (Mercado Único y Libre de Cambios, MULC) as from February 1, 2024, to settle outstanding debts from imports as of December 12, 2023, for up to 5% of the nominal value of BOPREAL Series 1 acquired in primary auctions, as long as the instrument’s aggregate is at least 50% of the total debt for such importer according to the registry of foreign commercial debts. This communication also expands the access to foreign currency as from April 1, 2024, through the sale of securities settled in foreign currency for up to an amount equal to the difference between the nominal value of BOPREAL Series 1 acquired in primary auctions and the settlement value of such securities in foreign currency abroad, if applicable.
The BCRA will announce new auctions for BOPREAL Series 1 tomorrow, with amounts and time frames similar to those offered this week.
