The Ministry of Finance announced the placement of US$2.5 billion in sovereign bonds, according to the General State Budget of 2021, approved by the National Congress.
This transaction was structured in an already existing bond for an amount of US$1 billion with maturity in 2030, at a yield of 3.87%, representing a reduction in the cost for the country, at this term, of 0.63%.
And a new US$1.5 billion bond maturing in 2041, at a yield of 5.3 % was issued. This is the first Latin American and emerging market sovereign issue with maturity in 20 years.
Hacienda Minister Jochi Vicente made the announcement. He said there was a record demand for US$10 billion by international investors. He said this is four times the amount that was placed. Vicente said that the average cost of the Non-Financial Public Sector debt is now reduced by 9 basic points, and the average duration of the bonds was extended from 12.0 to 12.2 years.
Citibank and JP Morgan made the placement.
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Hacienda
15 January 2021