Bond auction: government gets AR$1 trillion

It was the biggest auction this year

The Economy Ministry secured AR$1.15 trillion in its bond auction today in the second and last round of April, where it faced maturities of AR$965.79 billion. It was the biggest bond auction this year.

That way, the government obtained net financing for AR$193 billion. The net financing for the year is AR$ 740 billion.

“We want to thank the enormous efforts of banks, brokers, mutual funds, and insurance companies which in this difficult context showed such displays of confidence,” Finance Secretary Eduardo Setti tweeted today.

According to the Economy Ministry, 68% of the total amount comprised of dual bonds (bonds that pay their creditor whichever is higher between the inflation rate and the peso depreciation against the US dollar).16% were inflation-adjusted bonds and 13% were fixed-rate instruments.

In total, the Ministry received 2,295 offers for AR$1.5 billion. The “menu” consisted of seven bonds with only one new financial instrument (TDA24), a dual bond that matures on April 30, 2024. The other six bonds are re-issued and mature this year, including inflation-adjusted LECERs which mature on July 18 (X18L3) and September 18 (X18S3), an inflation-adjusted BONCER that matures on August 13 (T2X3), a dollar-linked LELINK that matures on October 31 (D31O3), a LELITE that matures on May 19, and a LEDE that matures on July 31 (S31L3) and a dollar-linked bond that matures on July 31 (T2V3D).

About 50% of the total collected amount was provided by the private sector, while the remaining 49.8% was provided by the public sector. Likewise, 68% of the financing obtained corresponded to instruments maturing in 2024, while the remaining 32% matures in 2023.

The auction finished one day after the informal dollar reached a record-breaking AR$497 and the currency exchange gap (brecha) exceeded 120%. 

The next bond auction is scheduled for May 17.

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