On June 19, 2017, the Government issued a bond for USD 2.75 billion at a rate of 7.125% due in 2117. Said issuance was made under an exemption from registration under the Securities and Exchange Commission (SEC) of the United States called the “Rule 144A”. The documentation of the issuance establishes that the Government will give bondholders the possibility of exchanging their bonds for bonds registered under the SEC within 1 year as from the date of issuance.

As from today and until June 18, 2018, holders of bonds issued under the Rule 144A will have the opportunity to swap their bonds for bonds registered under the SEC. This way, in addition to bonds due in 2117, holders will have the opportunity of swapping their bonds to other series of bonds issued under Rule 144A that haven´t been exchanged before.

In 2017, the Government completed the registration process as issuer before the SEC and issuances since then have been made in a registered way. This is the last chance to exchange bonds issued under Rule 144A.

It should be pointed out that this exchange does not constitute an additional debt issuance and that the terms for 2117 bond remain unchanged.
The documentation related with this transaction is available at:

https://www.sec.gov/Archives/edgar/data/914021/000119312518167569/d585796d424b5.htm

The Minister of Production, Francisco Cabrera, and the Minister of Finance, Luis Caputo, met with businessmen of the Argentine Business Association (AEA, for its acronym in Spanish). The meeting took place this morning at the building of the Ministry of Treasury.

The meeting was attended by: Jaime Campos, President of AEA; Marcelo Argüelles (SIDUS); Jorge Aufiero (Medicus); Carlos Blaquier (Ledesma); Federico Braun (La Anónima); Alejandro Bulgheroni (PAE); José Cartellone (Jose Cartellone Construcciones Civiles); Eduardo Constantini, (Consultatio); Alfredo Coto (Coto); Enrique Cristofani (Santander Río); Renato Fernández Baeza (Cencosud); Julio Figueroa (Citi); Alberto Hojman (BGH); Luis María Macchiavello (Droguerías del Sur); Santiago Mignone (PWC); Carlos Miguens (Grupo Miguens); Cristiano Rattazzi (FCA); Kurt Soland (Bayer); and Amadeo Vázquez. Both Ministers shared the Government’s vision on the measures and economic decisions made during the past weeks and they also talked about the negotiations with the IMF.

Campos, President of AEA, said: “This possibility the Government gives us to dialogue and listen to each other is very important. We are going to overcome this situation. It will get us stronger”.

Regarding the negotiations with the IMF, he said: “The Government anticipated itself and it is the best way to finish with this exchange issue. We are calm; it is a short exchange crisis. The Government is handling very well this situation”, he added.

In addition, Rattazzi (FCA), said: “I am satisfied with the decision of sorting to the IMF. We have recently presented a new car produced in Argentina, which will contribute to the increase of exports in the sector. The activity will continue as usual this year”.

Bulgheroni, of PAE, said: “It is very positive to see that the Government is working with precaution. It is the way a businessman wants a Government to work”. Regarding the firm’s investment, he said: “We continue executing our investments and we maintain our projects. Nothing changes”.

Cristofani, of Santander Río, said: “It is an exchange issue. It has nothing to do with the situation in 2001. There is not a debt crisis”. Regarding consumption, he added: “We analyze the consumption with credit cards and the evolution is positive for 20 points. We analyze the loans to individuals and they are at the same level than in previous months”.

The Minister of Production, Francisco Cabrera, and the Minister of Finance, Luis Caputo, met with businessmen of the Argentine Institute for Business Development (IDEA, for its acronym in Spanish). The meeting took place this morning at the building of the Ministry of Treasury.

The meeting was attended by: Javier Goñi, President of IDEA and representative of Ledesma, Gastón Remy, 1st Vice President of IDEA and representative of Vista Oil & Gas, and Gabriel Martino, 2nd Vice President of IDEA and representative of the bank HSBC. It was also atended by: Roberto Alexander (IBM), Diego Bekerman (Microsoft), Fernando Cinalli (S+R Consultores), Fernando Coccaro (E&Y), Hernan Dietrich (Grupo Dietrich), Nestor García (KPMG), Ignacio Gonzalez García (La Nación), Fabián Kon, (Banco Galicia), Teófilo Lacroze (Shell), Santiago Mignone (PWC), Marcelo Meller (Motomel), Diego Ordoñez (Dow), Federico Rava (Telefónica), Claudio Rodriguez (Sinteplast), Silvia Tenazinha (Almundo), David Uriburu (Grupo Techint), and Juan Manuel Vaquer (Dupont).

Both Ministers shared the Government’s vision on the economy and the productive sectors and they also talked about the negotiations with the IMF.

“The meeting was positive. The goal of this type of meetings is to inform the private sector about the measures our government is taking and to keep working together for the growth of our country”, Cabrera said.
“We want to bring certainty and foreseeability to businessmen. We are working to clear the horizon and continue in the path the country needs: the path of growth and creation of jobs”, Caputo added.

Javier Goñi, President of IDEA, said: “It is crucial for the Government to have spaces of dialogue and to listen to the business sector. From IDEA we want the best for the country and we aim to contribute to Argentina’s economic growth. The Government has given us certainty regarding the decisions taken. We are going to continue with the investment and development projects”.

Gastón Remy added: “The Government has given us certainty and calm; there is no need to bring ghosts from the past, we have to work together in this cultural change of long-term vision for growth, we have to keep transforming ourselves and we have to think in a competitive country with insertion into the world”.

Gabriel Martino said: “We have to remove the drama of a potential agreement with the IMF. Countries such as Colombia, Mexico and Brazil have entered into this type of agreements. The agreement is a guarantee, a reassurance for times of market volatility”.