The province of Land of Fire announced this Tuesday the placement of $2,700 million in Treasury bills maturing between August and October 2023 whose objective is to finance current expenses within the framework of a program authorized by the Tierra del Fuego Legislature in this year’s budget law.
He Ministry of Economy from the province announced the result of the bidding for the titles divided into three classes for up to $1,000 million each: C1 with a maturity of 58 days (end of August), C2 at 90 days (beginning of October) and C3 to 119 days (end of October).
Treasury bills of Tierra del Fuego: how much was bid
The bidding was carried out for a maximum amount of $2.700 million and “all classes bid with a Badlar rate from private banks plus a cut-off margin”reported the provincial economic portfolio.
The province received offers “for $3,794 million”, and awarded “$893 million of Class 1, $960 million of Class 2 and $847 million of Class 3, totaling $2,700 at a cost of 10.5%, 15% and 16% margin over Badlar, respectively”.
“The significant drop in the margin of the 59-day issue with respect to Class 2 of Series II was also highlighted, compressing the rate spread by 400 basis points“specified the spokesmen of the Tierra del Fuego government.
The provincial treasury got $2.700 million that was seeking financing through a market placement at “competitive rates,” they remarked.
Tierra del Fuego Treasury bills: Zapata García highlighted the total placement rate as “very competitive”
For his part, the Minister of Economy of the province, Federico Zapata Garciahighlighted that “on this occasion, the cut-off Badlar rate was below the TNA of 97% established for fixed terms, turning the total placement rate as very competitive in the market“.
The placement of the titles had been authorized through resolution 725 of this year issued on June 28, and was the third of the year carried out by the provincial government, with identical purposes.
The first tender was held at the beginning of May and served to place $1,712,870,000 in bills maturing on June 2 and $1,287,130,000 maturing on July 3.
In turn, at the end of May the second placement was made for $1,048 million maturing on July 6 and another $1,252 million maturing on August 4.
Source: Ambito
