Argentina corporate debt issuances reach 12-month high

Argentine companies saw a significant increase in capital market activity during August, characterized by a record number of corporate debt issuances. According to reports from PwC and the Comisión Nacional de Valores (CNV), the volume of negotiable obligations (ON) reached 41 placements, the highest in the last twelve months, totaling $1,758 billion pesos.

Despite an increase in country risk exceeding 500 basis points and rising private sector delinquency, companies continued to access financing. Total corporate financing reached $4,495,487 million (approximately US$2,978 million) in August, representing a 21% year-on-year increase relative to the Consumer Price Index (IPC).

In the foreign currency segment, companies raised US$989 million through 19 series. Notably, the average financing cost in dollars dropped to a minimum of 5.1% TNA, despite the broader increase in country risk. Conversely, in the local currency market, the average rate demanded by investors for financial trusts rose to 29.5% TNA, driven by reduced banking liquidity and an increase in the Tamar reference rate from 23.3% in July to 24.7% in August.