We advised in a Repo transaction between the Central Bank of Argentina and certain international banks for US$3,000 million
The Central Bank of the Argentine Republic (the BCRA) arranged with six top-tier international banks a repurchase transaction (the “Repo Transaction”) using part of its holdings of BONARES 2035 and 2038 securities, for a total tendered amount of USD 3,000 million, with a final term of 372 days. In the auction, the BCRA received bids totaling USD 4,400 million, exceeding the tendered amount by approximately 50%.
For this transaction, the BCRA will pay an interest rate equivalent to the SOFR-USD rate plus a spread of 4.00% (equivalent to a fixed rate of 7.4% per annum, considering the fixed-floating interest rate swaps quoted in the international market for the same term).
This new Repo Transaction confirms the BCRA’s ability to access financing instruments under market conditions and to efficiently manage its foreign currency liquidity, strengthening the solidity of its balance sheet and the country’s international reserve position.
Cleary Gottlieb Steen & Hamilton acted as New York Law counsel to the BCRA through the team led by partner Ignacio Lagos and associate Martín Sasson, in collaboration with the BCRA’s internal legal team.
A&O Shearman acted as New York Law counsel to the six international banks through the team led by partner Donna Parisi, counsel Andrew Feng and associate Benjamin Halligan, and included partners Geoffrey Goldman, Christopher Ryan, Alejandro A. Gordano, Jessica Delbaum, Bob Penn, Sara Couling, Alexander Behrens, and Lorenz Haselberger, counsels Ryan Leske and Martina Stegmaier, senior associate Elias Allahyari, associate Masashi Shimojo, international associate Emile Ferre and trainee solicitor Vincent Lafortune.
Bruchou & Funes de Rioja (Banking & Capital Markets Department), sole Argentine law firm participating in the transaction, acted as Argentine Law counsel to the six international banks through the team led by partners Hugo N. Bruzone and José María Bazán, and associates Ramón Augusto Poliche and Marco Haas.
