Caputo confirms first peso-denominated debt sale in nearly a decade

Argentina’s government on Monday unveiled the first sale of peso-denominated debt in nearly a decade in a high-stakes test of international investor confidence under budget-slashing President Javier Milei.

The auction Wednesday will be for a maximum US$1 billion, the Milei administration said.

Argentina is seeking to boost foreign reserves to meet International Monetary Fund loan requirements.

The "BONTE" will be a fixed-rate Treasury bond in pesos, but can be purchased in dollars and matures in May 2030. 

The instrument includes a two-year put option, giving investors an early exit alternative before the next presidential election in late 2027.

"Argentina regains access to international markets to refinance capital debt in local currency," Economy Minister Luis Caputo wrote on the X social network.

Last month, Argentina received an initial US$12 billion from a new US$20-billion loan agreed by the International Monetary Fund (IMF).

The injection from the IMF and others is crucial for replenishing Argentina's meagre foreign reserves, reviving growth and tackling inflation – a key focus for President Milei ahead of national midterm elections in October.

– TIMES/AFP