The Ministry of Economy managed to successfully circumvent the first call in May to renew debt in pesos after a month in which the Central Bank had to raise interest rates sharply. In addition to having stretched the horizon of new maturities to 2024 and 2025, it managed to finance itself at a cost somewhat lower than what the secondary markets mark, although this implies slightly higher yields than in April.
The Government placed debt for $751,742 million. In this way, it managed to cover the maturities of the first part of the month and obtained net financing of $162,603 million, informed the Palace of Finance. That represented a renewal rate of 127.5%.
in the tender, The Ministry of Finance received 1,373 offers, for $808,851 million, of which $605,594 million were awarded nominal value. After the placement, the net financing so far this year is more than $910,000 million and the Treasury was able to cover maturities for $589,000 million.
The Finance Secretary, Eduardo Setti, highlighted that “offers were received well above the maturities with great participation from the private sector and extending maturities to the third quarter 2024-2025″.
The Ministry stressed that there was a great “accompaniment from the private sector due to the extension of the profile of commitments”, on which they highlighted that “56% of the instruments have maturities between September 2024 and August 2025”.
On this occasion, seven titles were made available. A new LELITE maturing on June 16, 2023 was issued, exclusively for Mutual Investment Funds, which came out at an effective annual rate of 138%.
Among the securities offered are the reopening of two bills: one adjusted by CER (inflation), maturing on September 18, and one linked to the US dollar, which capitalizes on October 31, both in the coming year. A reopening of a CER-adjustable bond was also offered, maturing on August 13, 2023.
The new issuances were a CER-adjusted bill, maturing on October 18, 2023, a dollar-linked bond for September 30, 2024, and a CER-adjusted bond that capitalizes on August 23, 2025. The participation of the banks in the purchase of the new 2025 bond is also highlighted because it is an instrument that can be used to integrate reserve requirements.
According to the analyst Salvador Vitelli, from Romano Group, 40% of the tender went to BONTE 2025, 20% to BONCER and 18% to LECER. “In the previous tender, the LELITE (for the Common Funds) came out with a nominal annual rate of 75% and in this one it was 90%, which if one looks in annualized terms is an effective annual rate of 138%. Between one tender and another they rose 15 points but remained below the monetary policy rate. In terms of the effective rate, they went from 108% per year to 138%,” explained the analyst, who pointed out that “in that same period, the monetary policy rate rose 16 percentage points. TEA: 154.9% vs. 119.4%.”
Source: Ambito
