The Ministry of Economy and Finance (MEF) awarded exactly the same amount that was tendered, despite the fact that there were proposals for a higher amount.
The Public Debt Management Unit (UGD) of the Ministry of Economy and Finance (MEF) reported that the result of this Tuesday’s tender for the Treasury Note in Pension Units (UP) Series 3 obtained an adjudication for more than 1.6 billion pesos, which were added to the circulating public debt.
The government’s offer had been 1.1 billion PU and, although there was a demand for 1,300 million UP and the State has within its powers to end up awarding up to double the amount auctioned, finally the placement was the same amount bid. Meanwhile, they issued 1,604 million pesos which, at today’s value, are about $40.9 millionwith a cut rate of 2.12% and a cut price of 101.09.
The conditions of the Treasury Note in UP to 2040
The closing of the tender was at 2:30 p.m. of this Tuesday –Montevideo time– and the settlement will be the following business day, that is, Wednesday. Among the conditions for this Note in UP Series 3, the UGD established a 2.2% pa coupon.
In turn, the interest payment be biannualevery May 13 and November 13, until November 13, 2040, expiration date. The amortizationFor its part, it will be in three consecutive annual payments in the last three years of the term, on May 13, 2038, 2039 and 2040.
In the auction all local investors authorized by the Central Bank of Uruguay (BCU) to present your offers. Non-resident investors, for their part, could do so through a local bank or broker, or through Global Depositary Notes (tradeable at Euroclear, Clearstream and DTC).
According to the UGD, the tender was structured as an auction of only pricewhich means that all the accepted offers were awarded at the same price”, which was 101.09 and “the minimum amount of each offer” was PU 100,000in multiples of UP 10,000.
In turn, Treasury Notes were accepted as a means of payment 26 series (UI), 27 series (UI), Series 13 (UI) and Series 1 (UP).
Source: Ambito
