Central Bank of the Republic of Argentina in $6 Billion Repo and TRS Transactions

Cleary Gottlieb represented longtime client the Central Bank of the Republic of Argentina (BCRA) in the negotiation and execution of a new round of bilateral repo transactions with nine international banks, and a bilateral total return swap (TRS) transaction with one international bank, for an aggregate amount of $6 billion.

Each participating bank had the option to structure its participation as either a repurchase transaction or a substantively analogous TRS.

The transactions signed on July 2, 2026, and closed on July 7, 2026. The underlying assets to the repo transactions are BONAR bonds due 2035 and 2038 issued by the Republic of Argentina. The transactions are scheduled to expire in September 2028.

These transactions, with instruments issued by the Republic of Argentina as underlying assets, constitute a cost-efficient mechanism to enhance BCRA’s international reserves and liquidity.

Together with this new transactions, the BCRA agreed with the same international banks to early terminate, with no penalty for the BCRA, all existing repo transactions the BCRA had entered in the last couple of years.

The Cleary team included partners Ignacio Lagos and Deborah North and associates Martin Sasson and Lucas Davidenco.