p x q = 05.

20

Argentina Debt
Counterproposals

-
May 2020
 Argentina Economic Outlook 2020 - May 2020 2

Key points
Ad Hoc Bondholder Group BG Exchange Bondholders Group

Eligible bonds Indenture 2005 and 2016 Indenture 2016 Indenture 2005

2 (EUR/USD 2040) Equally weigthed 6 ( EUR/USD 2033, 2040 and GDP

Offered bonds 12 (from 2027 to 2047)
portfolio Warrant)

Principal haircut Yes. -1% 2036 and 2047 Bonds Yes. Global Long -2,32% No.

Average Coupon 4,44% 5,03% 4,75%

Grace period 1 year (2020) 1 year (2020) 1 year (2020)

Not same across bonds +- 1% per

Step-up From 0% 2020 to 5,875% 2025 From 0% 2020 to 5,875% 2025
year. Max Coupon 6,95% 2047 Bond

Capitalization Paid in kind 2020 and 2021 No No

Earliest final maturity 2027 2040 2033

Amortization since 2025 2027 2027

Accrued and unpaid interest Paid on the settlement date Paid on the settlement date Paid on the settlement date

Average NPV USD (10%) 60 58 58

Average NPV EUR (9%) 57 58 61

Fuente: pxq @pxqconsultora

 Argentina Economic Outlook 2020 - May 2020 3

Technical considerations

Ad Hoc Bondholder Group BG Exchange Bondholders Group

RUFO 10 yr - -

Bonds callable - At Make Whole -

Removal of the provisions on ex post

Redesignation - -
redesignation in the exchange offer
New bonds offered will be issued under
Indenture 2005 and 2016 Indenture, according the - New bonds issued under 2005 Indenture
eligible bond

Currency Only CHF will change of currency - Right to choose a change of currency

Effectivenes of the exchange conditioned Yes. 75% of the aggregate principal

Minimum Acceptance Treshold
on reaching the relevant CAC tresholds amount

Fuente: pxq @pxqconsultora

 Argentina Economic Outlook 2020 - May 2020 4

Accrued and unpaid interest (USD Mln)

Discount USD $ 387
$ 270
Discount EUR $ 181
$ 171
Global 2046 $ 116
$ 83
Global 2027 $ 75
$ 72
Global 2048 $ 69 Total accrued and unpaid interest
$ 53
Global 2036 $ 43 USD 1,7 Bn
$ 29
Par EUR $ 27
$ 27
EUR 2047 $ 26
$ 23
EUR 2027 $ 22
$ 19
EUR 2022 $ 17
$ 12
CHF20 $8
0 50 100 150 200 250 300 350 400 450

Fuente: pxq @pxqconsultora

 Argentina Economic Outlook 2020 - May 2020 5

Debt counter-proposal – Ad Hoc Bondholders Group

NPV of the new bonds

USD 4% 6% 8% 10% 12% 14%

NEW'27 94,4 84,2 75,3 67,6 60,8 54,8

NEW'30 95,8 83,0 72,1 63,0 55,2 48,6

NEW'36 105,4 85,2 69,5 57,8 47,6 39,9

NEW'39 114,8 92,7 75,7 62,5 52,2 43,9

NEW'43 98,8 77,0 60,9 49,5 39,9 33,0

NEW'47 113,5 88,9 70,9 57,6 47,4 39,7

EURO 3% 5% 7% 9% 11% 13%

NEW'27 95,5 84,8 75,6 67,5 60,5 54,3

NEW'30 96,1 82,6 71,4 61,9 53,9 47,1

NEW'36 107,0 85,4 68,8 55,9 45,9 37,9

NEW'39 121,1 96,6 77,9 63,5 52,3 43,4

NEW'43 105,3 80,8 63,0 49,8 40,0 32,5

NEW'47 112,4 85,9 66,8 53,0 42,6 34,8

Fuente: pxq @pxqconsultora

 Argentina Economic Outlook 2020 - May 2020 6

Debt counter-proposal – Ad Hoc Bondholders Group

NPV USD Bonds

NPV Offered Bond

Bond Accrued/Unpaid Interest Offered Bond NPV + Interest
(EY 10%)
Global 2021 3,8 New'27 67,6 71,4
Global 2022 1,64 52% New'27 + 48% New'30 65,4 67,0
Global 2023 1,54 New'30 63,0 64,5
Global 2026 4,15 New'36 57,8 61,9
Global 2027 2,01 New'36 57,8 59,8
Global 2028 (5,875%) 1,96 New'36 57,8 59,7
Global 2028 (6,625%) 2,3 New'36 57,8 60,1
Global 2036 2,47 New'36 57,8 60,3
Global 2046 4,21 New'47 57,6 61,8
Global 2048 2,29 New'47 57,6 59,9
Global 2117 2,63 New'47 57,6 60,2
Discount L. NY USD 3,01 New'39 62,5 65,5
PAR L. NY USD 0,43 New'43 49,5 50,0

Fuente: pxq @pxqconsultora

 Argentina Economic Outlook 2020 - May 2020 7

Debt counter-proposal – BG
NPV USD Bonds

NPV Offered Bond

Bond Accrued/Unpaid Interest Conversion NPV + Interest
(EY 10%)
Global 2021 3,8 1,018 58,8 62,6
Global 2022 1,64 1,018 58,8 60,4
Global 2023 1,54 1,018 58,8 60,3
Global 2026 4,15 1,000 57,8 61,9
Global 2027 2,01 1,000 57,8 59,8
Global 2028 (5,875%) 1,96 1,000 57,8 59,8
Global 2028 (6,625%) 2,3 1,000 57,8 60,1
Global 2036 2,47 1,000 57,8 60,3
Global 2046 4,21 0,977 56,5 60,7
Global 2048 2,29 0,977 56,5 58,7
Global 2117 2,63 0,977 56,5 59,1

Fuente: pxq @pxqconsultora

 Argentina Economic Outlook 2020 - May 2020 8

Debt counter-proposal – Exchange Bondholders Group

NPV Bonds

Accrued/Unpaid NPV NPV + Accrued

Bond New'33 NPV New'40 NPV
Interest Portfolio interest
Disc USD* 3,01 62,79 53,06 62,11 65,12

Disc EUR* 2,85 66,59 55,44 65,81 68,66

Par USD 0,43 62,79 53,06 53,74 54,17

Par EUR 0,38 66,59 55,44 56,22 56,60

*Discount bonds exchange will include a Contingent Coupon Strip Instrument

Fuente: pxq @pxqconsultora

 Argentina Economic Outlook 2020 - May 2020 9

Debt counter-proposal – Exchange Bondholders Group

Contingen Coupon Strip Instrument “CCS”

% nominal
Year Base case GDP growth
Issuance Ammount USD 11.500 Mill
2023 463
2024 475 2,6%
2025 488 2,7%
Payment dates May 2025 to May 2039 2026 501 2,7%
2027 515 2,8%
2028 529 2,7%
Coupon rate 2,50% 2029 543 2,6%
2030 558 2,8%
2031 573 2,7%
Nominal USD GDP 2032 589 2,8%
Payment Condition exceeds Argentina Base 2033 606 2,9%
Case GDP (IMF)
2034 622 2,6%
Argentina requiered to 2035 639 2,7%
Requirement complete Article IV 2036 657 2,8%
each year 2037 675 2,7%
CCS non-payment
would trigger cross
Cross-default
default of other public
external indebtedness

Fuente: pxq @pxqconsultora

 Argentina Economic Outlook 2020 - May 2020 10

Current Proposal
External Bonds (USD Million)
$ 10,000
$ 9,000
Debt Relief
$ 8,000 USD 38bn Interest
$ 7,100
$ 6,705 USD 3,6bn Principal
$ 7,000 $ 6,302
$ 5,898
$ 6,000
$ 5,126
$ 5,000 $ 4,511

$ 4,000
$ 2,775 $ 2,590
$ 3,000
$ 2,000 $ 1,419 $ 1,317
$ 867
$ 1,000 $ 335 $ 325 $ 299
$0
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
Interest Principal -

Fuente: pxq @pxqconsultora

 Argentina Economic Outlook 2020 - May 2020 11

Debt counter-proposal – Ad Hoc Bondholder Group

External Bonds (USD Million)
$ 10,000

$ 9,000 $ 8,586
$ 7,909 Debt Relief
$ 8,000 USD 20bn Interest
$ 7,231
$ 6,779 - USD 1,7bn Principal
$ 7,000 $ 6,522
$ 5,941
$ 6,000

$ 5,000 $ 4,575

$ 4,000 $ 3,240
$ 2,947
$ 3,000
$ 1,968 $ 1,646 $ 1,501
$ 2,000

$ 1,000 $ 634 $ 505$ 450

$0
2020

2022
2023

2025

2027
2028

2030

2032
2033

2035

2037
2038

2040

2042
2043

2045

2047
2021

2024

2026

2029

2031

2034

2036

2039

2041

2044

2046
Interest Principal

Fuente: pxq @pxqconsultora

 Argentina Economic Outlook 2020 - May 2020 12

Debt counter-proposal – BG + Exchange Bondholders

External Bonds (USD Million)
$ 10,000

$ 9,000 $ 8,276 Debt Relief

$ 8,000 $ 7,731
$ 7,185 USD 18bn Interest
$ 6,971 $ 6,740
$ 7,000
$ 6,189
$ 6,000 $ 5,637
$ 5,085
$ 5,000
$ 3,752
$ 4,000
$ 3,117
$ 3,000
$ 2,232
$ 2,000

$ 1,000 $ 714

$0
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
Interest Principal

Fuente: pxq @pxqconsultora

 Argentina Economic Outlook 2020 - May 2020 13

Debt counter-proposal – BG + Exchange Bondholders

External Bonds (USD Million) – With GDP Linked Interest (MAX)

$ 9,000 $ 8,557
$ 8,011
$ 8,000 $ 7,466 Debt Relief
$ 7,252 $ 7,021 USD 14bn Interest
$ 7,000 $ 6,469
$ 5,918
$ 6,000
$ 5,085
$ 5,000
$ 4,033
$ 4,000 $ 3,398
$ 3,000
$ 2,232
$ 2,000

$ 1,000 $ 714

$0
2020

2022
2023

2025
2026

2028
2029

2031
2032

2034
2035

2037
2038

2040
2041

2043
2044

2046
2047
2021

2024

2027

2030

2033

2036

2039

2042

2045
Interest Principal Interest GDP Linked

Fuente: pxq @pxqconsultora

 Argentina Economic Outlook 2020 - May 2020 14

FX Fin Needs (IMF 10yr + IFI’s)

% GDP

3.0% Target DSA

2.5%

2.0%
2.0% 1.8%
1.6%
1.5%
1.5% 1.3% 1.2%

1.0%
0.6% 0.7%
0.5% 0.3% 0.3% 0.2%
0.2% 0.1% 0.1% 0.1%
0.0%
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
Interest Principal

Fuente: pxq @pxqconsultora

 Argentina Economic Outlook 2020 - May 2020 15

FX Fin Needs (IMF 10yr + IFI’s) + Current Proposal

% GDP
4.0%
3.4%
3.5% 3.2% 3.1%
3.0%
3.0% Target DSA

2.5% 2.3%
1.9%
2.0% 1.7%
1.5%

1.0% 0.8% 0.8% 0.8%

0.5% 0.4%
0.5% 0.2% 0.3% 0.2% 0.2%
0.0%
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
Interest Principal

Fuente: pxq @pxqconsultora

 Argentina Economic Outlook 2020 - May 2020 16

FX Fin Needs (IMF 10yr + IFI’s) + Counterproposal Ad Hoc Bondholder Group

% GDP
4.0%
3.7%
3.6%
3.4%
3.5% 3.2% 3.2%
3.0%
3.0% 2.8% Target DSA

2.5%
2.2%
2.0% 1.9%

1.5% 1.3%
1.0% 1.0%
1.0% 0.9%
0.7%
0.5% 0.4%
0.5% 0.2% 0.2%
0.2%
0.0%
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
Interest Principal

Fuente: pxq @pxqconsultora

 Argentina Economic Outlook 2020 - May 2020 17

FX Fin Needs (IMF 10yr + IFI’s) + Counterproposal BG + Exch Bondholder Group

% GDP
4.0% 3.7% 3.7%

3.5% 3.3%
2.9% 2.8% 2.9% Target DSA
3.0%

2.5%

2.0% 1.9%
1.6%
1.4% 1.4%
1.5% 1.2%
1.0%
1.0% 0.8%

0.5%
0.2% 0.2% 0.1% 0.1% 0.1%
0.0%
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
Interest Principal

Fuente: pxq @pxqconsultora