Due to the “rain of dollars” there is a boom of companies that take advantage of this to finance themselves at lower rates

Within the framework of the entry of dollars for laundering, and with a strong rally in sovereign bonds that leads the country’s risk to be managed in the area of ​​minimums of the Milei era, more and more companies are going out to seek financing in the capital market. This Thursday, YPF Luz, the oil company’s subsidiary in the electricity business, raised more than US $ 400 million in the international debt market. They had offered him US$1.6 billion.

PPI highlighted “the impressive deal” that YPF Luz closed: “It captured more than US$ 410 million in international markets with an amortizable bond maturing in 2032. It will issue US$ 420 million of nominal value of these ONs (Negotiable Obligations) with a coupon of 7.875% annually. Given the structure of the ON and the issue price of 98.298%, the yield was 8.20%, below its bond maturing in 2026 (8.8%). given the company’s intentions to rescue a previous issue, YPF Luz not only managed to clear its debt profile, but also reduced the interest burden“, they explained.

The YPF case is just one example of an increasingly long list of corporate debt placements: this week, Vista Energy issued US$150 million in the market and citrus Saint Michael placed US$46 million. Other companies are preparing Debt exchangeswith this same idea of ​​lowering the cost and extending the life of its liabilities. And even Banco Nación wants to return to the markets after 30 years.

“There are many companies issuing. A lot is being placed and there are many firms that are going to continue coming to the market”said Leonardo Svirsky of Bull Market Brokers.

“Whitewashing unites the two ends: there is an appetite among investors and savers for get a rate for the dollars that entered the banks and there is a huge need of companies to finance themselves“explained a source from the financial sector. Until September 30, it is estimated that Some US$12 billion went into laundering.

The appetite of investors for these companies, which in many cases have a high level of credit, is seen in the oversupply what investors do and the rate compression they achieve. Last week, the Banco Galicia managed to place US$ 375 million in a four-year bond, with A 7.9% rate and with an offer from investors for US$ 1.4 billion, almost four times more than what was sought.

In the consulting firm 1816 they pointed out: “In recent weeks, we saw an international market very willing to lend to Argentine companies at Rates of a digit“. Along these lines, they added: “Sovereign bonds (that is, those issued by the State) and corporate bonds (from companies) have been trading at very different rates for quite some time, but the novelty is that now there are many companies trading at rates one digit on the outside”.

The Minister Luis Caputo highlighted weeks ago the successful placement of Pampa Energía, which was made at a rate of 5.75%. Could the exit of companies to the debt market be the kick-off for Argentina’s return to that same market?

In the City they believe that, if the drop in the country’s risk is sustained – which has improved by 40% so far this year – and the indicator manages to drill 800 points, Caputo’s chances of financing abroad again increase. Although They don’t think this is something that will happen before the first quarter of next year.

“If significant financing in dollars is opened to the private sector from both the international market and the local market, it no longer seems impossible to face the public sector maturities of 2025 and maintain the blend dollar (for exports) without losing many net reserves,” They pointed in 1816.