He The Ministry of Economy will try to obtain funding this Wednesday for more than $300,000 million in the first tender for debt in local currency after the exchange of March 9 with which he was able to overcome the short term and stretch the maturity horizon to 18 months.
Officials from the Ministry of Finance consulted by Ámbito said that they are confident that they will achieve a good result with the operation in which almost all of the bonds are in private hands.
After the exchange 10 days ago, there were maturities for March for some $600,000 million. This month’s bonds that were made available to investors were those with the lowest level of adherence, barely 20%. ANDn the Palacio de Hacienda they point out that it is “a significant amount” that must be renewed.
Now, they will seek to test the mood of the market with a couple of long-term options: These are two dual bonds for February and April 2024, two options that are already entering the period of the next government.
In the market the result of the conversion operation left some doubts. It had an acceptance rate of 58% against previous expectations of 60% to 65%. Although it was a bit lower than expected, the operation made it possible to decompress $4.3 trillion, going from $7.5 trillion in the second quarter to just under $3.2 trillion. The amount is clearly higher than what was converted in the previous exchange operations ($0.9 and $2.9 trillion in the November and January operations). And also, it was possible to renew for a year and a half, against an average of three previous months.
On the other hand, Finance has already begun to analyze alternatives to clear the maturities of the second semester, which are mostly (60%) in the hands of agencies and companies of the national state itself.. Sources from the Palacio de Hacienda confirmed that one of the alternatives under study is a conversion operation with new bonds maturing between 2026 and 2027. Outstanding debt in the second half of the year is equivalent to u$s34,103 million, and with a new exchange it would be sought order the curve of the bonds in pesos to give greater security and certainty to the market.
As a negative element in the current context appears the deterioration of the fiscal situation of the National Public Sector (SPN), something is not well seen by the operators. If we add that the payment of US$2.7 billion to the IMF that was due this week had to be postponed until March 31, until the Board activates a disbursement of US$5.3 billion to be able to pay without affecting the Bookings.
In this opportunity the Treasury offers a LELITE to April 21, 2023only for common funds with a nominal annual rate of 72%, which implies an increase of 300 points with respect to the previous tender. It also proposes a LEDE on June 30 and another on July 31, 2023, a LECER on July 18 and another on September 18. The market estimates that the inflation-adjustable bill that matures in July could be placed at between 3.25% and 3.75%, depending on what these instruments are trading on secondary markets, while the June discount bill would be yielding between 126% and 136.5%,
As indicated in a report Portfolio Personal Inversiones (PPI), the dual bonds that were delivered in the debt swap would not arouse much interest. “In the secondary market, they were yielding devaluation plus 2.3% and 3.7%, respectively,” says PPI.