The CER instruments (tied to inflation) are having success in the placement rounds of the Ministry of Economy and, along these lines, two new ones were issued: a very short-term letter and a two-year bond.
The Ministry of Treasury and Finance jointly arranged the issuance of a Bill and a National Treasury Bond, both in pesos and adjusted by CER. The first is for an amount of up to $300,000 million of face value maturing on November 23 of this year, which is equivalent to a term of 176 days and full amortization at maturity. And the second is for $250,000 million, with a maturity date of June 18, 2025 (2 years and 18 days term). In this way, it expands its offer of instruments tied to inflation.
Both will operate under Capital adjustment methodologywhich establishes that the capital balance of the bill will be adjusted according to the Reference Stabilization Coefficient (CER) informed by the Central Bank of the Argentine Republic (BCRA), corresponding to the period elapsed between the 10 business days prior to the date of issuance and the ten (10) business days prior to the expiration date of the interest service or corresponding capital amortization.
In the case of the bond, it will accrue interest on adjusted balancesat an annual nominal rate of 4.5%, which will be payable on December 18, 2023, June 18, 2024, December 18, 2024 and June 18, 2025.
Also, it was provided extension of the issuance of the “National Treasury Bill in Pesos Adjusted by CER at a discount maturing September 18, 2023” for an amount of up to $200,000 million and of the “National Treasury Bond linked to the US dollar 0.40% maturing 30 April 2024” for an amount of up to US$800 million.
Source: Ambito
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