In the tender for cash, the Ministry of Finance (led by Rafael Brigo and Ramiro Tosi) received 554 offers for a value equivalent to around $ 87,000 million, more than three times the amount it had sought ($ 25,000 million). Of that total, it awarded close to 90%. This is an encouraging figure from the official point of view since, they say, this implies that the market validates the menu of instruments offered. In this case, Finance had put on the table a Lelite (the very short-term letters exclusively for mutual funds that launched last month) to 22 days, two letters at a fixed rate (Ledes) to January and March 2022, and two bonds tied to inflation (Boncer): the Q2X2 to September 2022 and the TX23 to March 2023.
As the maturities to be renewed in the first fortnight amounted to just over $ 11,600 million, the amount awarded implied starting the month with a net debt of $ 67,915 million. It is an important cushion because it allows to cover part of the Treasury’s expenses and also because, even before the second tender in November (scheduled for Thursday 18), it already guarantees the refinancing of the following payments: mainly the $ 35.3 billion in interest TY22P bond held by banks. Thus, along with the exchange of T2V1, Finanzas will arrive with more air at the end of the month.
Given the acceleration of inflation and the search for coverage by investors, 61% of the amount placed went to the Boncer. For the same reason, they had a significant compression of their yields, which made it possible to reduce the real validated rate by more than one percentage point with respect to the previous tender. The T2X2 captured $ 25,105 million at a real rate of 1.13% and the TX23 attracted $ 23,157 million at 2.48%.
Through the Lelites, the FCI contributed $ 8,737 million at a predetermined nominal annual rate of 34.25%, the same level as last week. On the other hand, given the investors’ preference for the short term, the LEDs in January had an important demand: it captured $ 19,450 million at 40.11%. At the time that the Ledes to March obtained only $ 3,136 million at 42.59%.
With this result, the net financing accumulated in the year via debt in pesos amounts to $ 511,000 million, which is equivalent to a 118% rollover. As direct monetary assistance from the BCRA to the Treasury reached $ 1.3 trillion at the end of October, the accumulated financing mix is around 72% through issuance and 28% through debt. Although the officials point out that, if the income from the special drawing rights sent by the IMF used to pre-cancel temporary advances to the Central, the mix is located at 63% -37% (much closer to the goal of 60% – 40% raised by Guzmán). However, this movement had no concrete monetary impact.
In the other operation of the day, Finance managed to clear $ 50.6 billion that expired on November 30. It was through the exchange of T2V1, which was entirely in the hands of local investors and which was accepted by almost 52% of the remaining holders. The original maturity of this title tied to the official exchange rate, issued in the middle of an exchange run at the end of 2020 as a sign that the Government did not plan to devalue, amounted to today’s values of about $ 177,000 million. But a part had already been postponed at the beginning of October in a similar operation. Between both conversions, the maturity of this title was reduced by 73.3% and now there is a remainder of $ 47,250 million.
Thus, the commitments for all of November were reduced from $ 328,367 million to $ 277,700 million, the largest portion of which must be renewed in the third tender of the month, scheduled for November 26.
The bondholders who entered the swap could choose one of the two baskets of securities that Finance had proposed: either keep all their holdings in dollar linked bonds (30% as of November 2022 and 70% as of April 2023) or combine 30% in Ledes as of February 2022 plus 70% in dollars linked to 2023. 98% chose the first alternative, which showed that the search for market coverage against a devaluation of the official exchange rate remains firm.