In a major win for President Javier Milei’s economic agenda, the Argentine government successfully raised $1 billion through the issuance of a peso-denominated bond subscribed by international investors. This marks Argentina’s return to the global debt markets after nearly eight years and comes as part of a broader strategy to strengthen Central Bank reserves amid a pivotal agreement with the International Monetary Fund (IMF).

Key highlights of the operation:

• Instrument: Treasury Bond (Bonte) maturing in 2030

• Amount awarded: $1 billion

• Interest rate: 29.5% annually in pesos

• Investor demand: 146 offers totaling ARS 1.94 trillion (approx. $1.69 billion)

• Jurisdiction: Local Argentine law

This Bonte is unique in that it requires investors to bring in dollars, while repayment is made in pesos. It also includes a “put” clause, enabling investors to demand early repayment in May 2027, at which point the Treasury will execute a mandatory buyback if triggered.

The funds raised will serve three strategic purposes:

1. Refinance local currency debt using external capital.

2. Increase international reserves without creating new net debt.

3. Extend the average maturity of peso-denominated liabilities.

This move aligns with Argentina’s recent $20 billion deal with the IMF, which has already disbursed $12 billion. The success of this bond placement sends a strong signal to global markets about Argentina’s renewed fiscal discipline and economic stabilization efforts.