Massa approves first bond auction of 2023

The government obtained AR$416 billion, well over the AR$352.32 billion maturities it faced. For the first time since September, the government offered a bond that matures after the presidential elections.

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.

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