Economy passed a new market test: it captured $416,500 million and placed the equivalent of 113% of maturities

Economy passed a new market test: it captured $416,500 million and placed the equivalent of 113% of maturities

The Ministry of Economy achieved a successful tender for titles in pesos, after the conversion operation last week in which it was able to place long-term maturing debt. In the first call of March, According to the Secretary of Finance, Eduardo Setti, on this occasion the Government went out to look for $367,000 million and awarded $416,500 million, with a renewal rate of 113%.

“Today is an important and positive day. In addition to presenting measures that, among other things, allow us to reduce Argentina’s debt in more than US$4,000 million of foreign law bonds, we were facing the most important bidding process in pesos of the quarter,” Setti said.. The official specified that bids for a nominal value of $664,000 million were presented and thanked “the institutions of the Argentine financial system and the individuals who trusted our proposal.”

In March, the government faces maturities in pesos for just over $600,000 million, since the bonds that expired during this month, which the government tried to redeem 10 days ago, had the lowest level of acceptance, barely 20%. In other words, 80% of the original commitment had remained, which is almost all in private hands.

economy reported that 1,643 offers were received, representing a total of VNO offered of $664,156 millionof which a NAV of $430,264 million was awarded, which represents a cash value of $416,546 million.

“In this tender, the National Treasury faced maturities for $367,354 million, obtaining, therefore, a monthly net financing that reached almost $50,000 million,” said the Palace of Finance.

According to the official detail, of the total financing obtained, 43% consisted of CER-indexed instruments, 32% fixed rate, 22% at a dual rate and the remaining 3% adjusted to the official exchange rate. Likewise, 74% corresponded to instruments maturing in 2023, while The 26% remaining It expires in 2024.

Among other details, for a linked dollar bond that matures on April 30, the Government is paying the official dollar devaluation rate plus a nominal rate of 4.26%, while for a dual bond that ends in February of next year the rate is 2.54% plus inflation or devaluation, whichever has risen more.

On the LEDE side (fixed rate) maturing on June 31, the Treasury is paying a nominal annual rate of 92%, which is equivalent to about 125% in order with what is quoted in the secondary markets.

last March 9 The Government entered the market with an exchange operation that allowed the maturities of the second quarter to be reduced by $4.3 trillion, going from $7.5 trillion to just under $3.2 trillion. The amount is clearly higher than what was converted in the previous exchange operations ($0.9 and $2.9 trillion in the November and January operations). And also, it was possible to renew for a year and a half, against an average of three months in previous conversions. Even so, there were some doubts in the market, because the level of acceptance had been 58%, when at least 60% was expected.

On the other hand, F.Inanzas already plans to launch a debt swap in pesos for state agencies for bonds that mature in the second semester. The idea is to stretch the maturities to 2026 and 2027. The operation is complementary to the one announced yesterday with the bonds in dollars that will have to be exchanged for papers in pesos to the Treasury.

Source: Ambito

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