We advised ten international banks in a new series of Repo transactions and a TRS transaction with the Central Bank of the Argentine Republic for US$6 billion
The Central Bank of the Argentine Republic (the “BCRA”) cancelled all of its outstanding passive repurchase (REPO) transactions for a total amount of USD 6 billion, and entered into a new series of repo transactions with nine leading international banks as well as a bilateral total return swap transaction with one leading international bank, for an aggregate total amount of USD 6 billion, maturing in September 2028.
Through this new transaction, the BCRA refinanced all maturities of these instruments scheduled for 2026 and 2027, strengthening its foreign currency liquidity position and improving the predictability of its foreign exchange flow, thereby supporting the orderly functioning of the local foreign exchange market. Additionally, this transaction allowed the BCRA to reduce its financing costs once again and expand the number of participating international banks.
The transaction was structured using BONAR bonds available in the BCRA’s portfolio, with bids received for USD 8.25 billion. Under this transaction, the BCRA will pay an interest rate equivalent to the USD-SOFR rate plus a spread of 4.00%.
Cleary Gottlieb Steen & Hamilton acted as New York Law counsel to the BCRA through the team led by partner Ignacio Lagos and associates Martín Sasson and Lucas Davidenco, in collaboration with the BCRA’s internal legal team.
A&O Shearman acted as New York Law counsel to the ten international banks through the team led by partner Donna Parisi, counsel Andrew Feng and associate Ben Halligan, and included partners Geoffrey Goldman, Christopher Ryan, Alejandro A. Gordano, Jonathan Cho and Lorenz Haselberger, counsels Ryan Leske and Anna Stockamore, international associate Emilie Ferré, associates Masashi Shimojo and Robert Debenedetti, trainee solicitor Aled Bennett, and summer associates Victoria Tse and Joe Largo.
Bruchou & Funes de Rioja, sole Argentine law firm participating in the transaction, acted as Argentine Law counsel to the ten international banks through the team led by partners Hugo N. L. Bruzone and José María Bazán, and associates Ramón Augusto Poliche and Victoria Negro. Likewise, the team was assisted by partner Daniela Rey from the firm’s Tax Department.
