The Economy portfolio also reported that in the conversion of two bills that expire on July 29 (Ledes S29L2 and Lecer X29L2), it managed to refinance $190,395 million for the next year. Thus, the commitments for nearly $500,000 million scheduled for the end of the month were reduced to just over $300,000 million for which it now also has a financing cushion.
In the first auction of the month, the Treasury offered four titles with maturities in 2022, 2023 and 2027. A Lelite was issued on August 11, the Ledes with maturity on October 31, 2022 was reopened, the linked bond was also reopened to the US dollar that expires on July 31, 2023 and the Jackpot was reopened with maturity on May 23, 2027. The Ledes was the instrument that attracted the largest amount.
The Ministry of Finance, now led by Eduardo Setti, received 461 offers, for a total amount of $203,199 million nominal value, of which an effective value of $122,607 million was awarded.
Of the total financing obtained, 92% was represented by fixed rate instruments and the remaining 8% was the instrument linked to the US dollar. Likewise, 62% corresponded to securities maturing in 2022, 8% to instruments maturing in 2023 and the remaining 30% to instruments maturing in 2027.
As Batakis had already anticipated, one of the bets to obtain a good result in the auction was the rise in the interest rates of the Treasury. This was particularly noticeable in the Ledes, which had been offered with a TNA floor of 59.5% and finally closed with a cutoff rate of 63.46%, almost 4 points higher. The other innovative tool, anticipated by Ámbito, were the new put options launched on Tuesday by the Central Bank aimed at giving liquidity guarantees to financial entities that subscribe to public securities.
For its part, in the conversion operation, 44 offers were received for a nominal value of $160,653 million. “In order to reduce the projected maturities for this month, the conversion of the Ledes S29L2 and the Lecer X29L2 was offered, both maturing on July 29, 2022, for which a basket was offered consisting of two new Ledes maturing on February 28 and April 28, 2023”, described the Palacio de Hacienda.
Within the framework of the Market Makers Program, the second round will be held this Thursday, where offers can be received and awarded for up to 20% of the total nominal value awarded in this tender in Ledes on October 31.
The next tender will take place on Wednesday, July 27, as previously reported in the preliminary tender schedule for the second half of 2022. There, the aim will be to complete the renewal of July commitments and attract positive net financing in order to to put a cap on monetary assistance from the Central Bank. The agreement with the International Monetary Fund plans to reduce the issue to finance the treasury to 1% of GDP this year.
Source: Ambito
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