The basket of securities offered by the Ministry of Economy is made up of a Lelite as of May (although only for Common Investment Funds), three Ledes (S29L2, S31G2 and S30S2), a Lepase (SG162), TV24, a Boncer (TX26 ) and a combo composed of 60% a new Lecer as of May (X19Y3) and 40% a Boncer T2X4. In line with the strategy outlined in recent times, the issuance of securities adjusted for inflation is not focused on the short term, but instead seeks to stretch commitments.
According to calculations by the SBS Group, the amount sought this week will go to cover maturities of $389.6 billion corresponding to Lelites, the remainder of the dollar bond linked TV22 (after the exchange) and a Ledes (S29A2).
Regarding the result of the tender, Santiago Lopez Alfaro (president and partner of Patente de Valores) assured in dialogue with Ambit what “it will continue to be very good because the local market needs these products”, even “despite what is happening in the international markets” and with the emerging ones in particular. “The rollover in the first quarter was very good, expectations were exceeded”, he detailed. The economist also pointed out that the TV24 tender will be “interesting”, especially for the amount that the market takes from this title, because “it is the first front tender, not the product of an exchange, of a linked dollar bond that expires in the next term.
In the first three months of 2022, the minister’s team Mazartin Guman achieved an average roll over percentage of 150%. In January, maturities reached $297,875 million and it obtained $437,490 million (147%). In February, maturities rose to $336,163 million and placements totaled $520,470 million (155%). In March, the Treasury had to face obligations for $637,617 million, but obtained $954,848 million (150%) in the market. Part of the success of the financial team’s strategy is explained by the growing importance of indexed securities in the menu of options offered. Between January and February, CER placements represented 45% of the total, although that percentage rose to 77% last month, with a reduction in terms at the same time (March bill placements had a weighted average term of 10 months, according to Finance).
Investors’ appetite for CER debt is mainly explained by high levels of inflation. According to a calculation by the consulting firm Cohen, “the CER-adjustable debt reaches US$70 billion, almost triple that of December 2019. In addition, it already represents 20% of the total public debt and almost 15% of the GDP”.
Source: Ambito
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