The Finance team works together with banks, Alycs and mutual funds for next week’s placement. Changes in the Market Makers Program. Private companies consider the management of maturities “successful”.
The Ministry of Economy is already working with banks and brokerage firms to prepare the first call for tenders for debt in pesos in May. It is not an easy call since, like April, in this one more it is necessary to try to cover approximately $1 trillion, plus a plus destined to the fiscal deficit and most maturities are in private hands. As confirmed by sources from the Palacio de Hacienda, the economic authorities maintain contact with the main entities to refine the proposals.
The peso front is one in which the Government has been circumventing barriers with some solvency and this is recognized by the markets. For example, during the Amcham Summit 2023 this Tuesday, Facundo Gómez Minujin, the CEO in Argentina of the JP Morgan bank, pondered the task of the Finance team to achieve stretch deadlines and pass due dates beyond this year’s elections. “It has been very successful in refinancing the instruments,” Gómez Minujin pointed out in a public talk with the Minister of Economy, Sergio Massa, at the closing of the event of North American companies, beyond the fact that this achievement has a strong imprint of the State itself.
Until now Finance has been achieving a refinancing rate of more than 120% in the first four months of the year. As Massa himself considered, “the May maturity is something that working intelligently with banks, mutual funds and institutional investors can be covered perfectly.” While for the official “June is much more accessible than May due to the composition”. The head of the Palacio de Hacienda says he is calm with the expiration of the second semester “because 85% of ownership is within the public sector” so that in his opinion, what will remain in the second half of the year is to “reorder” the maturities so as not to affect the bond curve.
The Ministry of Economy was able to go up to here bypassing the political noise generated by the debate with the opposition economists, who warned that the current management is “kicking” the maturities, which will impact the next administration, which they assume will be a president from of that sector.
While, for the first call for bids of the monthscheduled for May 18, which includes maturities for just over $300,000 million, a series of modifications to the Market Makers Program will be implemented, tending to generate greater competition among investors. This group has the possibility of accessing a bonus bonus once the bidding is concluded, in a second round.
Economy arranged to add the figure of the “lead market maker” that responds to the performance parameters of a formula. The first three can be played in the subsequent call for 15% more bonuses and the rest, another 15%. Until now, in the round reserved for this group of banks and brokerage firms, it was possible to access an additional 20%, which is now being extended. But in the last calls there was such a significant demand that Finance had to apportion the bonuses among all the participants.
According to the Palacio de Hacienda’s own data, as of today The three entities with the best performance, which will have 15% reserved, are Banco Nación, HSBC and Provincia.
If the level of participation in the calls for bids from November 1 to April 30 is taken into account, the most active have been Nación (21.5%), Provincia (15.7%) and Galicia (14.8%).