The Economy Ministry secured AR$773.71 billion in its bond auction yesterday in the second round of May, where it faced maturities for AR$ 447.8 billion. 

Today, in the second round of the auction, the government got extra financing for AR$ 17.5 billion — 16.5% of what was allocated yesterday–, meaning that it got AR$792.21 in the two rounds.

“On this occasion, the economy [ministry] received bids for more than AR$1 trillion and placed AR$773.71 billion, the highest net financing of the year (AR$295.84 billion), implying a rollover of 162%, with a large participation of the private sector,” Finance Secretary Eduardo Setti tweeted on Monday evening. 

However, if public sector participation in the operation is excluded, the rollover percentage drops to 113%.

Economy Ministry sources highlighted that “70% of the bond issues were demanded by the private sector, while the remaining 30% corresponded to the public sector”. They said they also managed to extend 36% of the maturities between 2024 and 2025.

With this result, net financing so far this year is AR$ 930.56 billion — a 127% refinancing rate.

In yesterday’s auction, 980 bids were received for AR$ 1.025 trillion, of which AR$ 674.31 billion were allocated, representing an effective value of AR$ 773.71 billion. An additional 21 bids were made in the second round.

The Economy Ministry offered nine bonds and bills: a re-opened LELITE which matures on June 16, 2023, exclusive for mutual funds; two CER-adjusted bills ( X18S3 and X18O3) maturing on September 18 and October 18, 2023; a dollar-linked bond due on October 31, 2023 (D31O3).

Three other instruments were reopened: one inflation-adjusted (T2X3), maturing on August 13, 2023; and two US dollar-linked TV24 and T2V4, maturing in April and September 2024.

Finally, there were two new issues: a CER-adjusted bill, X23N3, maturing on November 23, 2023, and a CER-adjusted bond maturing on June 18, 2025.