After carrying out a voluminous debt operation in national currency —which included an exchange—, the Ministry of Economy and Finance (MEF) announced that next Tuesday the central government will reopen the Treasury note in nominal pesos maturing in 2025. Ehe expected issue volume is $700 million, but the authorities have the power to award up to twice that amount. The currency of this note is today $4,520 million.
The maximum quota allowed for the operation is up to $30,000 million. The MEF explained that “the total offers per institution cannot exceed the amount authorized to be awarded by the issuer (200% of the tendered amount)“.
The investor may make the integration of their placements through Uruguayan pesos and/or dollars. Likewise, the Treasury Notes of the series 19 in UI with maturity in September of this year, the series 26 in the same currency with maturity in May 2023, the series 27 in UI with maturity in 2024, and the global bond in dollars maturing in June 2022.
Debt operation of more than US$ 1,000 million
The MEF and the Central Bank carried out this week a joint debt operation with Treasury notes in indexed units (UI) and Pension Units (UP) above US$ 1,000 million.
On Tuesday, the public sector tendered UI 1,300 million with due in 2027investors offered up to UI 5,497 million, and the MEF Debt Management Unit ended accepting UI 2,600 million with a rate of 0.67%.
Also, on Wednesday he placed UI 2,182 million that will mature in 2034. The demand in that instance reached UI 3,108 million and the interest rate stood at 2.43%. The amount obtained by the government for the operations in UI reached the equivalent of US$ 562 million.
Also yesterday Thursday reopened the Treasury Note in Pension Units (UP). On that occasion, UP 3,500 million were tendered in the first instance, which were widely exceeded by the demand for UP 11,885 million. The rate was agreed at 1.72% and the amount placed ended up being the maximum authorized —UP 7,000 million— maturing in 2037.
Today, Friday, the tender for an additional UP 4,300 million was also negotiated, but the demand once again far exceeded them and it ended up awarding, again, the maximum: UP 8,600 million. The cutoff rate this time was 1.78%. In UP, what was obtained by the government reached approximately US$ 457 million.
“The government issued Treasury Notes in local currency for a nominal total of $44,738 million (approximately US$1,019 million. This represents twice the base amount tendered during the operation. The total demand represented 3.4 times the base amount established for the four tenders”, highlighted a statement from the MEF. Since all the Notes issued were made above their par value, the effective value issued will be $46,639 million (approximately US$1,063 million).
Of the total amount of securities issued, 83% was made up of Monetary Regulation Letters (LRM) from the BCU and short-term government Treasury Notes; the remaining amount of 17% was paid in cash (pesos and dollars).
