12 June 2024

Argentina’s new capital market: a channel for development

| The European |

It seems that Argentina is in the midst of a new era. As citizens and businessmen, we have to support this process of transformation. This is not only a great challenge for the current government, but for all those who live in Argentina too.

PUENTE has a historical policy of involvement in issues concerning Argentina’s development: mainly suggesting that best practices and regulatory updates that should position the Argentine capital market in a more competitive situation.

In this sense, our sector has a lot of catching up to do: the capital market is the best way for the financing of public and private infrastructure projects in our country. The Argentine government has implemented strong measures during its first months in office to ensure these areas continue to develop.

If we look back, there has been much progress: solving the default situation, raising the exchange rate, reducing the country risk considerably, generating a draft change in the law of capital markets, and other regulatory changes. The challenge ahead is still very great, with a goal to direct the country on the path to long-term growth that we all believe is possible.

Although the world seems to be a bit less favourable to emerging markets, PUENTE has a very optimistic view of Argentina going forward. In fact, as a company we are positive this process of transformation is already happening in the financial services industry.

We have more than doubled the primary issues in the capital market – for corporate clients and for the government. We will be issuing an average of two transactions per week in 2017 and we are likely to end the year with bond issues worth almost $10bn. We are the main structuring and bonding agent in Argentina.

In terms of asset management – the administration of Common Investment Funds (FCI) – has been consolidating strongly. Megainver, our managing partner of FCI, manages almost 8,000m pesos and is the independent FCI Management company to grow the most last year.

The trading operation for institutional clients will close the year also with record volumes, close to $18,000m in assets traded in the local market and international market. We channel heavy flows of international and national investors who invest in Argentina, both in financial assets and real assets.

On the wealth management side (investment management) we are likely to be one of the biggest players in the region, with assets in custody of $3.6bn. We are the only Argentine entity in the capital market operating in Uruguay and Paraguay – we have a strong position in both countries where we structure and place more than 40% of all primary issues, and handle practically no more of 30% of the volume traded in those markets.

In October 2016, confident in the new era that’s upon us, we launched our investment funds for the real-economy – real estate funds and renewable energy. Soon, we will be launching funds aimed at agribusiness and private equity.

In this new Argentina, the capital market will be a channel for the savings of Argentineans and for international investors to finance, industrial, energy and other projects across the country.

Federico Tomasevich

Further information

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