According to the domestic debt issuance calendar for the first half of 2023, the Ministry of Economy and Finance (MEF) announced that it will reopen this Tuesday March 14 a tender of the Treasury Note in Indexed Units (UI) by 1,136 million pesos and with a term of almost six years and maturity in January 2029.
Also, this week Central Bank of Uruguay (BCU) will place three titles in nominal pesos by 12,300 million pesos.
The conditions of the Treasury Note in UI to 2029
The amount to bid on the Treasury Note Series 31 in UI is 200 million IU. That is, some 1,136 million pesos –28.9 million dollars– at today’s value; although, taking into account the high demand in previous public placements, and the flexibility with which the State can extend the award, an even higher number could be expected after the process.
Among the conditions, the UGD established a 3.25% annual coupon. In turn, the interest payment be biannualevery July 18 and January 18, until January 18, 2029, expiration date, with date of amortization back then.
Bidding will close at 2:30 p.m. of this Tuesday –Montevideo time– and the settlement will be the following business day, that is, Wednesday.
All local investors authorized by the Central Bank of Uruguay (BCU) may present their offers in this tender. Non-resident investors, for their part, may do so through a local bank or broker, or through Global Depositary Notes (tradeable on Euroclear, Clearstream and DTC), if available.
According to the UGD, “the tender will be structured as an auction of only pricewhich means that all accepted offers will be awarded at the same price” and “the minimum amount of each offer will be PU 100,000in multiples of UP 10,000”.
In turn, Treasury Notes will be accepted as a means of payment. 26 series (UI), 27 series (UI), Series 13 (UI) and Series 1 (UP).
This week $12,300 million in titles in pesos will be tendered
In accordance with the tentative schedule for placing titles in nominal pesos, of the Central Bank of Uruguay (BCU), This week, a total of 12,300 million pesos will also be offered between three placements.
He monday march 13 at 2:00 p.m. a tender will be opened for a title by 5,000 million pesos –127.7 million dollars–, of which 1,000 million pesos–25.6 million dollars– will be in non-competitive placements. The term is 28 days, that is, it expires on April 10 of this year and the integration date is the same day.
He Wednesday March 15 at 2:00 p.m. a title will be tendered for 3,300 million pesos –84.3 million dollars, at today’s values– with integration that same day and with a maturity period of 91 days. In other words, it has an expiration date of June 14 of this year. Of this total 660 million pesos, some 16.8 million dollars were considered non-competitive placements.
Lastly, the friday march 17 at 2:00 p.m. the auction will open for another placement in pesos with a term of 175 days and for 4,000 million pesos –102.2 million dollars–, of which 800 million pesos–20.4 million dollars– will be in non-competitive placements. Integration that same day and expiration, on September 8 of this year.