He Ministry of Economy and Finance (MEF) will reopen this Tuesday Treasury Note in Indexed Units (UI) Series 30 for more than 1,162 million pesos and with a term of almost four years and maturity in January 2027.
This Tuesday’s auction will be a major focus of attention, as it is the first tender for a Treasury Note after the issuance of a new global bond in pesosTherefore, the behavior of the market will be seen in the offer of instruments in pesos or indexed to inflation, such as this one.
At the beginning of February, the MEF decided to declare void the tender for another Note in nominal pesos for 800 million pesos since the demand did not cover the amount offered. It remains to be seen how this new auction will go, where the State will once again seek funding through domestic debt instruments.
The conditions of the Treasury Note in UI Series 30
The amount to bid for the Series 30 Treasury Note is 200 million UI. That is, about 1,162 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 current amount would amount to 5,001 million UI –29,051 million pesos–, according to the Public Debt Management Unit (UGD).
Among the conditions, the UGD established a coupon of 1.125% per year. In turn, the payment of interest will be semi-annual, every January 19 and July 19, until January 19, 2027, the expiration date, where the amortization will take place, in a single time.
The closing of the tender will be at 2:30 p.m. this Tuesday – Montevideo– 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 Depository Notes (tradeable at Euroclear, Clearstream and DTC), if available.
According to the UGD, “the tender will be structured as a single price auction, which means that all accepted offers will be awarded at the same price” and “the minimum amount of each offer will be UP 100,000, in multiples of UP 10,000”. The total bids per institution cannot exceed the amount authorized to be awarded by the issuer (200% of the bid amount).
In turn, Treasury Notes Series 27 (UI), Series 13 (UI) and Series 1 (UP) will be accepted as means of payment.
Source: Ambito
