BCRA exchanged lecaps for up to $2 billion in dollar-linked securities

The Ministry of Economy approved a debt conversion operation with the Central Bank (BCRA), allowing the monetary authority to exchange its holdings of a LECAP denominated in pesos for dollar-linked securities worth up to $2 billion.

The measure was formalized through Joint Resolution 53/2026 from the Secretariats of Finance and Treasury, published this Monday in the Official Gazette. To carry out the exchange, the Treasury arranged the expansion of two dollar-linked securities (LELINK) maturing in September and October.

Specifically, the BCRA will deliver holdings of the LECAP S30O6, a National Treasury security capitalizable in pesos maturing on October 30, 2026, and will receive in exchange the LELINK D30S6 and D30O6. The operation includes an expansion of up to $800 million of the original nominal value of the LELINK D30S6, which matures on September 30, and up to $1.2 billion of the LELINK D30O6, maturing on October 30.

Thus, the maximum amount of dollar-linked securities involved in the conversion reaches $2 billion.

The resolution establishes that the operation will take place on September 4 and will be settled on this Monday, September 7.

To determine the conversion ratio, the market prices in pesos of the involved instruments will be taken into account. In particular, the Ministry of Economy established that the quotes immediately before 1:30 PM on September 4 on the screens of Bolsas y Mercados Argentinos (BYMA) will be considered, under the 24-hour settlement modality.

From these values, the nominal value of the LECAP S30O6 that the Central Bank must transfer in exchange for each of the LELINK will be calculated.

The regulation also establishes specific formulas to calculate the conversion ratios and stipulates that the results be rounded to the nearest whole number that is a multiple of the minimum denomination of the LECAP.

The first of the instruments is the LELINK D30S6, a Treasury security linked to the US dollar, zero coupon, maturing on September 30, 2026. For this operation, the Ministry of Economy authorized an increase in its issuance up to a maximum of $800 million.

The second is the LELINK D30O6, also linked to the dollar and zero coupon, but maturing on October 30, 2026. In this case, the expansion may reach up to $1.2 billion.

Both expansions will be carried out only for the amount necessary to complete the conversion with the BCRA, so the $2 billion constitutes a maximum limit and not necessarily the amount that will ultimately be exchanged.

The operation implies a change in the composition of the Central Bank's debt holdings. The BCRA will deliver the S30O6, a capitalizable instrument denominated in pesos, and will receive in exchange securities whose value is linked to the evolution of the US dollar.

Additionally, it partially modifies the maturity calendar. While the LECAP delivered by the Central Bank matures entirely on October 30, up to $800 million of the instruments it will receive will mature one month earlier, on September 30, while the remaining up to $1.2 billion will mature on October 30.

The resolution falls under the regulation that allows subscriptions and conversions of public debt instruments using other public securities, regardless of their payment currency, with prices determined based on market values.

The measure also clarifies that the expansions of the LELINK are within the limits established by the 2026 Budget for the issuance of Treasury securities intended for the financial program.

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