These types of debt securities are updated based on inflation and, in this case, interest payments will be made semi-annually, maturing in 2034.
He Ministry of Economy and Finance (MEF) closed at 2:30 p.m. on Tuesday a new tender of the treasury note in Indexed Units (UI) –Series 29– with maturity of 11 years, on August 28, 2034, and awarded 1,248 million pesoswith the objective of funding from instruments in pesos.
The amount to bid stipulated by the Public Debt Management Unit (UGD) It was 200 million UI – approximately 1,147 million pesos or 29.6 million dollars, at today’s value. However, since the State has within its powers to end up awarding up to double the amount auctioned, it ended up placing a little more than what was offered: 217.5 million IU –1,248 million dollars or 32.2 million dollars–, a 8.75% more than expected.
This was the tenth time Series 29 had reopened. Diego Rodfinancial advisor to Gaston Bengochearecalled that, in August 2021, when the government issued this series of NT, the dollar was trading at 42.965 in Uruguay while yesterday it closed at 38.741, while the UI was trading at 5 and today it is at 5.7371.
With these bidding results, whose cut rate it was of 3.39%, the current amounted to 5,795.5 million UI –33,249 million pesos–. The integration it will be tomorrow, Wednesday.
The conditions of the Treasury Note in UI to 2034
Among the conditions, the UGD established a 2.5% annual coupon. In turn, the interest payment be biannualevery August 24 and February 24, until August 24, 2034, expiration date. The amortizationFor its part, it will be in three annual, equal and consecutive payments in the last three years of the term, on August 24, 2032, 2033 and 2034.
All local investors authorized by the Central Bank of Uruguay (BCU) were authorized to present their 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).
la la minimum amount of each offer was PU 100,000in multiples of UP 10,000, and the tender was structured as an auction of only pricewhich means that all the accepted offers were awarded at the same price, as established by the UGD.
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
