The Economy Ministry obtained funds for AR$416 billion in the first bond auction of the year, more than it needed to cover its AR$352.32 billion maturities.
The auction took place the day Minister Sergio Massa announced the buyback of US$1 billion of sovereign debt. Immediately after the announcement, the country risk index plummeted by almost 200 basic points, reaching the 1,800 mark.
“Offers were received for a total nominal value of AR$690 billion, allocating an effective value of almost AR$420 billion. With these results, financing of around AR$65 billion was obtained,” tweeted Finance Secretary Eduardo Setti.
It is the first time since September that the Ministry has offered a bond that will mature after the presidential election – a dollar-linked bond that matures at the end of October 2023.
The Ministry also said in a press release that 71% of the financing obtained was through fixed-rate instruments, and 8% through variable-rate bonds. Yearly nominal rates ranged from 69.50% to 86.69%.
The statement also highlighted that the remaining 21% was obtained through adjusted instruments – 19% of them represent inflation-indexed bonds and the other 81%, dollar-linked instruments.
Seven types of bonds were offered in total, with maturities between April 28, 2023 and October 31, 2023. A BADLAR-adjusted Treasury bond aimed towards banks, with a November 23, 2027 (TB27P) maturity, was also offered.
The next auction is set to take place on January 27.