Bond auction: government gets AR$882 billion

Net financing so far this year reached more than AR$1.8 trillion

The Economy Ministry secured AR$ 873.1 billion yesterday in the second and last bond auction of the month. It also gained an extra AR$ 9.2 billion with today’s second round of the bid —meaning that it not only could pay for its AR$ 740 billion maturities but also got extra funding for future debt payments.

Over the course of June, the Treasury achieved positive net financing of AR$584.8 billion, a refinancing rate of 150%.

Finance Secretary Eduardo Setti recalled in a tweet that the government deferred AR$ 7.4 trillion to 2024 and 2025 in a debt swap at the beginning of the month, another move that flattened the pesos debt maturity curve. “With this result, net financing so far this year is more than AR$1.8 trillion, which is equivalent to a refinancing rate of 136%,” Setti said.

The offer included a Treasury Liquidity Bill (Lelite) maturing on July 18, 2023, which can only be obtained by mutual funds. Four other bonds were offered: two CER-adjusted bonds, one with a 3.75% and the other with a 4.25% annual surcharge, maturing on April 14, 2024, and February 14, 2025, respectively.

The government also offered two CER inflation-adjusted financial instruments maturing on October 18 and November 23, 2023 among the members of the Market Makers Program in today’s second round of the bid.

The remaining instruments were linked to the US dollar, one with an annual interest rate of 0.40% and the other of 0.50%, maturing on April 30 and September 30 of next year.

Yesterday, 1,142 bids were received, representing a nominal value of AR$1.1 trillion, of which AR$ 813.80 million were awarded — an effective value of AR$ 873.1 billion.

Through a press release, the Ministry of Economy highlighted that 43% of the financing obtained corresponded to instruments maturing in 2023. The remaining 57% had maturities in 2024 and 2025.

The next auction will take place on July 14.

—Télam / Herald


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