As stipulated in the domestic debt issuance schedule for the first half of 2023, the Ministry of Economy and Finance (MEF) will reopen this Tuesday March 28 a tender of the Treasury Note in Nominal Pesos (UYU) by 800 million pesos and with a term of 7 years and maturity in February 2029.
In the last broadcast of the Public Debt Management Unit (UGD) the government awarded more than 1,600 million pesos in a title in Pension Units (UP) to 2040. The amount tendered had been that, and although the demand was almost 20% higher, the government decided to issue what it had initially offered.
In the previous placement, the MEF awarded only a quarter of the bid. Meanwhile, it remains to be seen if this Tuesday the awards that doubled or tripled the public offer of the first months of the year will be returned.
The conditions of the Treasury Note in UYU to 2029
The amount to bid on the Treasury Note series 10 in UYU is 800 million pesos. Although, taking into account the high demand in previous public placements, and the flexibility with which the State can extend the award –up to 14,400 million pesos–, an even higher figure could be expected after the process.
If the adjudication of the expected amount is finalized, the circulating will amount to 5,757 million pesos –144.1 million dollars–, as anticipated by the MEF.
Among the conditions, the UGD established a 10.5% annual coupon. In turn, the interest payment be biannualevery August 1st and February 1st, until –precisely– the February 1, 2029, expiration date, where the amortization.
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).
Source: Ambito
