Banco Macro unveils Ps$160bn buyback

Generic bank share certificates on a glass desk with a stock ticker, illustrating BMA Ps$160bn buyback program

Key Points

01Banco Macro (BMA) approves a share buyback of up to 20 million Class B shares
02Program authorizes investment of up to Ps$160 billion at up to Ps$10,700 per share
03Buyback will run for 45 days starting after publication in the Buenos Aires exchange bulletin
04Daily purchases are limited to 25% of recent average trading volume across markets

Banco Macro launches new share repurchase program

Banco Macro S.A. (BMA) has announced that its Board of Directors approved a new share buyback program focused on its Class B common shares. The bank is authorized to repurchase up to 20,000,000 Class B shares, representing the maximum allowed under its 10% capital stock limit. The program sets a total investment cap of Ps$160,000,000,000, with a maximum price of Ps$10,700 per share.

The repurchase program will run for 45 calendar days, starting the day after the relevant information is published in the Buenos Aires Stock Exchange Bulletin. The term may be renewed or extended, with any such changes to be announced through the same bulletin.

Key terms and regulatory framework

The buyback is structured under Article 64 of Law No. 26,831 and the rules of the Comisión Nacional de Valores. Banco Macro states that it will comply with regulations limiting daily share acquisitions to no more than 25% of the average daily transaction volume over the 90 business days prior to each repurchase day.

To calculate this limit, the bank will use consolidated trading volume across all markets where its shares are listed, both domestic and international. Each Class B share targeted by the program has a par value of AR$1 and carries one voting right.

Rationale for the buyback initiative

Banco Macro’s Board cites the current domestic and international macroeconomic environment and capital market fluctuations as important factors behind the decision. These conditions have materially affected the prices of domestic equities, including the bank’s own shares.

The Board also notes that it considered the bank’s financial strength and liquidity in approving the program. The stated objectives include protecting shareholder value and addressing what the bank views as a recent market price decline that does not reflect the fair value of its assets or its economic potential.

In addition, the program is intended to help reduce volatility in Banco Macro’s share price. By setting explicit limits on total investment, maximum price per share, and daily trading volumes, the bank outlines a framework for conducting the repurchases within existing regulatory and market constraints.

Key Takeaways

01Banco Macro (BMA) has set clear quantitative limits on its buyback, including share count, total spend, and maximum price per share.
02The program is tightly linked to regulatory rules, with daily purchase caps based on recent trading volumes and consolidated market data.
03Management frames the initiative as a response to macroeconomic pressures and perceived undervaluation, aiming to support shareholder value and moderate price volatility.

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