Franklin Templeton bought $2.3bn of bonds denominated in Argentine pesos last week, according to a person familiar who spoke with the firm about the purchase.
The sale was a “reverse inquiry” made by funds run by Michael Hasenstab, the person said, asking not to be named because the talks were private. Hasenstab didn’t reply to calls and e-mails seeking comment. An Argentine official at the Finance Ministry said the sale wasn’t a reverse inquiry, declining to be named. Finance Minister Luis Caputo said he didn’t know who bought the bonds on Tuesday.
The bonds acquired were a retap of peso debt maturing in 2023 and 2026, known as Botes – boats in English – after a Spanish acronym for “Treasury bonds.” The government sold about 73bn pesos ($3bn) of the local debt at a yield of 21% for the 2023 bond and 19.9% for the 2026, according to a e-mailed statement.
A reverse inquiry is sale requested by the acquirer. Templeton is the biggest holder of these bonds, according to data compiled by Bloomberg.
The Franklin Templeton office in Buenos Aires was closed last Wednesday and a spokesperson declined to comment in the US. The bonds were acquired by Templeton at May 14’s exchange rate of 24.99 per dollar, according to the person. The peso gained 3.9% the next day.
The Financial Times reported earlier that Templeton bought these bonds and cited a spokesman for Hasenstab as saying, “the current government continues to demonstrate incredible resolve and skill in giving life back to an economy that had all but collapsed.”