Banco Macro approves share buyback of up to ARS 160 billion

what happened

The board of Argentina's Banco Macro has approved terms for repurchasing its own shares. TradingView reported the move, citing the bank's press release distributed via PR Newswire. The decision follows macroeconomic uncertainty and swings in the domestic market, which have weighed heavily on the bank's share price. Management says the recent decline does not reflect the fair value of its assets or its earnings potential, and points to its financial strength and liquidity.

The program runs for 45 calendar days. The maximum investment is ARS 160 billion, and the number of shares to be bought is capped at 20 million Class B shares with a par value of ARS 1. The maximum price per share is set at ARS 10,700. The bank will also count trading volumes across all markets where it operates, both local and international, to stay within the rule that daily purchases cannot exceed 25% of average daily trading volume over the previous 90 business days. The buyback limit stays within 10% of the bank's share capital.

why it matters

For the market, this is a signal of support for the stock during a period of heightened volatility. The buyback could smooth price swings, but the release does not disclose the program's size relative to market capitalization or the pace of purchases, so its real impact on the price is hard to judge.

tags

instruments