(The Province of Buenos Aires, 21.Mar.2021) — Since the announcement of its invitation to holders of certain eligible bonds as set forth in the invitation memorandum dated 24 April 2020 (as amended and supplemented from time to time, the “Invitation Memorandum”) to submit orders to exchange their eligible bonds for new bonds, the Province of Buenos Aires has maintained informal discussions with various institutional holders and certain of their advisors. These discussions have sought to identify adjustments to the Province’s initial proposal that would facilitate the participation of eligible holders (as defined below) in the exchange while meeting the authorities’ overall debt and economic policy objectives.
On 18 March 2021, GoldenTree Asset Management LP, one of the Province’s largest bondholders, entered into a non-disclosure agreement with the Province (the “NDA”). In furtherance of the NDA, the Province delivered to GoldenTree the materials attached hereto as Annex A setting forth a package that, in the authorities’ view, gave investors opportunities to contribute to a successful debt restructuring while preserving the Province’s debt sustainability goals. The presentation attached hereto as Annex A does not constitute an amendment to the Invitation Memorandum or the terms of the invitation set forth therein. The Invitation is currently scheduled to expire on 26 March 2021.
GoldenTree responded by putting forward conditions in terms of overall debt service and maturity that expose a material digression from terms that the Province could consider meaningful for the purpose of continuing discussions on a restricted basis. Accordingly, the NDA has expired in accordance with its terms.
Since December 2019, the authorities of the Province have dedicated significant efforts to address the Province’s outstanding debt imbalance through a debt restructuring that meaningfully contributes to stabilizing the Province’s economic condition and allows the Province’s economic trajectory to return to long-term growth, thus preserving value for investors. In the meantime, the outbreak of the COVID-19 pandemic has added demands on the Province’s strapped finances, and required the authorities of the Province to focus their efforts on managing the materially adverse impact of this lasting condition on the Province’s population. The Province remains available to engage with investors with a view to identifying paths adequate to permit a debt restructuring that meets the Province’s long-term objectives and restores value to all stakeholders by making the debt burden sustainable.
Eligible Holders, or custodians for such holders, of Eligible Bonds may obtain a copy of the Invitation Memorandum by contacting the dealer managers by calling any one of the numbers above or D.F. King at its email address (PBA@dfkingltd.com) or telephone number (+44 20 7920 9700 or +1 212-232-3233) or by download, following registration, via: https://sites.dfkingltd.com/PBA
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