A woman walks past a currency exchange board in Buenos Aires on Aug. 12. Natacha Pisarenko/AP

Full proposal to be posted on argentinaexchangebondholders.com later today

The Argentine Exchange Bondholder Group, acting together with the Ad Hoc Argentine Bondholder Group, submitted a joint restructuring proposal to Argentina on Wednesday, May 27.  This joint proposal is supported by the largest groups of Argentina’s creditors, collectively holding more than 30% both of outstanding Exchange Bonds and outstanding Global Bonds.  The Exchange Bondholder Group will publish the full proposal on its website (www.argentinaexchangebondholders.com) at approximately 5:00 PM Eastern Time today.

The joint proposal provides more favorable terms for Argentina than prior proposals from either group and takes into account the Argentine Government’s economic and fiscal objectives and the challenges presented by COVID-19 while also respecting the principles articulated by the Exchange Bondholder Group with respect to the treatment of the Exchange Bonds.  To that end, the proposal supports the country with very substantial front-loaded cash flow relief.

The Exchange Bondholder Group and the Ad Hoc Argentine Bondholder Group are confident that the joint proposal provides a sound basis for a collaborative solution that appropriately addresses the legitimate interests of both the Argentine nation and its international bondholders. The institutions in both groups have also more generally been longstanding providers of capital to Argentina’s economy via its provincial and corporate borrowers and have a strong interest in seeing a stable economy capable of achieving sustained growth.

The Exchange Bondholder Group is comprised of 18 investment institutions and collectively holds over 15% of the outstanding Exchange Bonds issued by Argentina under its 2005 indenture and 2010 indenture supplement.  Exchange Bonds were issued to investors who participated in the 2005 and 2010 debt exchanges, through which bondholders voluntarily accepted large reductions in net present value to assist Argentina’s recovery from the 2001 default.  

In addition to the joint proposal argentinaexchangebondholders.com also contains additional important information related to Argentina’s restructuring. You can also follow the group on Twitter at @Argexchangebond.