The government seeks $14,400 M in the market with 4 tenders

He Central Bank of Uruguay (BCU) and the Ministry of Economy and Finance (MEF) will place titles of domestic public debt this week for a total of 14,400 million pesos with terms of up to 350 days, along with a Treasury Note, Indexed Units (UI) Series 30.

This Monday, at 2 p.m., the first title in pesos will be tendered for 5,000 million pesos – 131.03 million dollars, in today’s value –, with integration that same day and with a deadline of 35 days. Of that total, 1000 million pesos They will be non-competitive placements.

He Tuesdayat 2:30 p.m., will be awarded the Treasury Note Series 30 for 200 million Indexed Units (UP) with a term of 3.3 yearsand an expiration date of January 19, 2027. This tender will not have non-competitive placements.

On Wednesday there will be another award, also at 2 p.m.: a title will be put out to tender for 4.2 billion pesos, equivalent to about 110.06 million dollars, with integration that same day and with a period of 91 days. Of this total, 840 million pesos are considered non-competitive.

On Thursday, for its part, the third title will be put out to tender, with award the following day, and for a value of 5,000 million pesos – about 131.03 million dollars – and with a term of 350 days. Of that total amount, 1 billion pesos are considered non-competitive.

Double what was offered was placed in UP’s NT

Last week the Ministry of Economy and Finance (MEF) placed more than 3,601 million pesos, that is, about 94,141 dollars, in the closing of the tender for the Treasury Note Series 6 in Pension Units (UP), bonds that already concentrate 17% of the stock of debt of the government.

In total, the MEF offered 1.2 billion UP, valued at just over 1,800 pesos (about $47 million) and accepted almost the entire demand, which was 2.48 billion UP.

The offer closed with a cut-off price of 100.82 and a Internal rate of return (IRR) of 2.1490%, according to data from the Uruguayan Electronic Stock Exchange (Bevsa). Regarding the conditions, they included a term of 14 years, that is, they expire on July 20, 2036.

It is not the first time that the demand for instruments linked to U.P. reaches double the government’s offer, at a time when the Uruguayan peso remains strong in relation to the dollar. Thus, the MEF advances with its strategy to continue funding with financing instruments debt in pesos.