IRSA anticipates the exchange of a 360 million dollar bond

IRSA, the real estate development company he chairs Edward Elsztain, advanced in the process of voluntarily exchanging a bond issued in dollars for 360 million dollars, expiring in 2023.

Beware that today it is not easy to get the dollars to pay the debt services, the company proposed an exchange to creditors which consists of this: in exchange for the delivery of the original obligation, which accrues interest at the rate of 8.75% per annum, will receive a voucher with the same characteristics, but with deadline March 2028. And they will also receive new bonds for the equivalent of 3% of the capital owned by each creditor. Therefore, if a bondholder delivers bonds for $ 1,000, he will receive documents for $ 1,030.

This document which is now being exchanged has been placed primarily among local retail investors.

The company reported that the exchange will be open until June 16. Until now, The IRSA obtained 57% acceptance (communicated by nearly 10,000 bondholders) e Requires 70% adhesion to be achieved to finalize the exchange.

The new bond will pay half-yearly interest and 70% of the principal will be amortized between 2024 and 2027; the remaining 30% will be paid upon maturity in 2028.

“As part of the restrictions imposed by the Central Bank for the purchase of foreign currency, we have drawn up a proposal that we believe is attractive to all holders. We hope that the rest of the universe of investors who have this link will have access to the information in order to participate in the exchange, “he says. Mattia GaivironskyCFO of the IRSA.

Among the financial entities involved in this exchange are Santander, Itaú, BCP and Citi.

“We have been coming for two very complicated years for our businesses due to the pandemic, but we always prioritize our investors. We appreciate that you join us once again by putting your trust in the group, ”added Gaivironsky.

In 2020, the Central Bank issued a rule that indicated that to restructure private debts, the monetary entity allowed companies to access the foreign exchange market for 40% of the amount at maturity.

For the rest of the refinanced capital, they can access new external debt with an average life of two years.

In 2021, the BCRA board decided to introduce a new flexibility, “in line with the improved availability of foreign exchange and as a transition step up to full liberalization”.