With a strong participation of banks and mutual funds, the Ministry of Economy managed to close the funding in May with the best rollover rate of the year. He had to face debt maturities for $477,867 million and managed to place $773,710 million, after receiving offers for almost $1 billion.
In that way, the Ministry of Finance managed to stretch net financing to 162% for this second call of the month. In the previous one it had been 130%. “It should be noted that the monthly net financing was also the highest of the year, still subtracting the second round that will take place tomorrow,” explained the head of the agency, Eduardo Setti, through their social networks.
The Palacio de Hacienda indicated that “70% of the awards corresponded to the private sectorwhile the remaining 30%, to the public sector”. Sources from the Finance team told Ámbito that “There was a strong participation of banks and mutual funds.”
“With this result, the net financing so far this year is more than $1.2 trillion,” said Economía.
For the second tender of the month, a LELITE was reopened with expiration on June 16, 2023, exclusively for Mutual Investment Funds.. In addition, three bills were reopened: two adjusted for CER (inflation), X18S3, and X18O3, maturing on September 18 and October 18, respectively, and one linked to the official dollar, D31O3, maturing on October 31, all maturities corresponding to 2023.
There was also a reopening of three bonds: one CER-adjustable, T2X3, maturing on August 13, 2023, and two linked to the US dollar, TV24 and T2V4, maturing on April 30, 2024 and September 30, 2024. respectively. On the other hand, there was two new issues: a letter adjusted by CERX23N3, due November 23, 2023, and a CER-adjustable bond maturing on June 18, 2025, which can be used by banks to establish reserve requirements.
Official information indicates that 64% of the financing obtained corresponded to instruments maturing in 2023, 18% due in 2024 and the remaining 18% due in 2025.
The Palacio de Hacienda indicated that “During May, compared to the month of April, the weighted average term by cash value awarded for CER-adjusted instruments extended from 3.1 months to 7.3 months” with a weighted average rate that fell from 4.4% to 3.2%.
As for the dollar-linked securities, the weighted average term was 14.5 months, while the weighted average rate was -2.8%. This also implies an improvement compared to April, the month in which these values reached 4.2 months and -2.3% respectively.
As pointed out the economist Salvador Vitelli, from Romano Group, the Ministry of Finance managed to stretch the maturity horizon, in this call, to nine and a half months, although at the cost of a placement in which 99% are instruments indexed by inflation, dollar or both.
Source: Ambito
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