BCU tender dates in the third week of May
This monday may 15at 2:00 p.m., the first title in pesos for 3,300 million pesos –84.68 million dollars, at today’s value–, with integration that same day and with a term of 36 days. That is, with an expiration date of June 20 of this year. Of that total, 660 million pesos –16.93 million dollars– will be non-competitive placements.
Two days later, he Wednesday May 17there will be another adjudication, also at 2:00 p.m.: a title will be tendered for 2,500 million pesos, equivalent to about 64.15 million dollars, with integration that same day and with a term of 84 days -two months-; with an expiration date of August 9 of this year. Of this total, 500 million pesos – about 12.83 million dollars – are considered non-competitive.
Lastly, the friday may 19at the same time, a title will be tendered for 3,300 million pesos –84.68 million dollars– with integration that same day and with a maturity period of 364 days (one year). In other words, it has a maturity date of May 17, 2024. Of this total, 660 million pesos –16.93 million dollars– will be considered non-competitive placements.
The conditions of the Note in UP that will be tendered on Wednesday for $1,634 million
The amount to bid on the Treasury Note series 3 in UP is from 1.1 billion PU. That is, some 1,634 million pesos; although, considering the flexibility with which the State can extend the award, an even higher figure could be expected after the process.
If the amount offered is materialized, the circulating would amount to 33,168 million UP –49,271 million pesos–according to Public Debt Management Unit (UGD).
Among the conditions, the UGD established a 2.2% pa coupon. In turn, the interest payment be biannualevery May 13 and November 13, until May 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.
Bidding will close at 2:30 p.m. of this Wednesday –Montevideo time– and the settlement will be the following business day, that is, Thursday.
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. 27 series (UI), Series 13 (UI) and Series 1 (UP).
In its last 3 issuances, the BCU awarded less than expected
This week the Central Bank of Uruguay (BCU) issued three bills of monetary regulation (LRM) for just over 10,769 million pesosa 13.8% less than expected. In turn, it placed 1,261 million pesos in a Treasury Note in Indexed Units (UI).
Last monday may 8as provided for in the tentative placement schedule, the BCU awarded 4,466 million pesos in a title with a term of 35 days, expiration date next June 12 and a cut-off rate of 11.32%. The amount to be tendered was 4,200 million pesos and offers were submitted for 5,628 million pesos, 34% more.
However, two days later, the Wednesday 10, The market reaction to the second title, with a 91-day term and maturity on August 9 of this year, was different. Compared to the 3,300 million pesos offered, only 3,408 million pesos (3.3% more) were proposed and, finally, the entity ended up accepting just 2,458 million of pesosa 25.5% less than the initial bid amount. The cut rate was 11.36%.
Yesterday, Friday 12, Interest on the instrument in pesos with a term of 175 days and maturity on November 3 of this year dropped considerably. The demand did not even cover the expected 5,000 million pesos and was 4,644 million pesos, 7.12% less. The BCU also decided to accept only 3,844 million pesos (a 23.12% less), with a cut-off rate of 11.07%, so as not to validate a higher rate compared to the average of 10.87%.