The Economy Ministry secured AR$751.74 billion in its bond auction yesterday in the first round of May, where it faced maturities for AR$589 billion. 

“We have seen news reports about the uncertainty regarding the capacity rolling over the maturing debt,” Finance Secretary Eduardo Setti tweeted on Wednesday evening. “However, we received bids well in excess of maturities, of which we took net financing for AR$162 billion, with large private sector participation and extending maturities to the third quarter of 2024-2025.”

Sources in the Economy Ministry highlighted two facts — that “the majority of the instruments are backed by the private sector” and that “maturity profiles” were extended. 56% of the bonds issued have maturities between September 2024 and August 2025.

With this result, net financing so far this year is more than AR$910 billion.

In this auction, 1,373 bids were received for AR$808.85 billion, of which AR$605.59 billion were adjudicated, representing an effective value of AR$751.74 billion.

Today the second round of the auction will take place. The government can receive and accept offers for up to 30% of today’s adjudicated nominal value.

The Economy Ministry offered seven bonds and bills: a new LELITE which matures on June 16, 2023, exclusive for mutual funds: a new CER-adjusted bond, X18O3, maturing on October 18, 2023; a dollar-linked bond due on September 30, 2024; and a CER-adjustable bond closing on August 23, 2025.

Three other instruments with 2023 maturities were reopened: two inflation-adjusted ones –the X18S3, maturing on September 18; and T2X3, maturing on August 13–  and a US dollar-linked one, D31O3, maturing on October 31.

The next auction will take place on May 29.

-Télam