Marco Belmonte / La Paz
The Government determined to carry out an Exchange and Repurchase Offer of the Sovereign Bonds issued a few years ago and which have a maturity date of 2022, 2023 and 2028.
“The Plurinational State of Bolivia Announces Invitation to Purchase Offers and Exchange Offers for its 2022 Negotiable Obligations, 2023 Negotiable Obligations and 2028 Negotiable Obligations”, reads the invitation made internationally and disclosed on the portal https://www.prnewswire.com.
The financial analyst Jaime Dunn explained that with this operation what the Government intends is that the bonds that have to be paid this year and in 2023 are due in advance to pay a small premium and at the price that is quoted today.
“Investors are told ‘the bonds that mature in 2022 and 2023 I will buy from you now, and those that mature in 2028, which have a low price, I will buy from you at a discount’, and with that achieve savings” , he specified.
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Dunn specified that national investors such as the AFPs and that at the time acquired these securities will be exchanged for new bonds with longer terms.
Meanwhile, foreign investors who accept this proposal will be paid in cash for the investment made.
The Invitation began on February 10 and will expire on Thursday, February 17, unless extended or terminated earlier by Bolivia in its sole discretion.
Industry sources indicate that the operation provides bondholders abroad that they will be repurchased with the money obtained from a new issue of sovereign bonds.
In 2012, Bolivia issued these debt securities in international markets for 500 million dollars; the following year it made a new placement for another 500 million dollars and in 2017 it executed an additional one for the sum of 1,000 million dollars.
