The 15-year securities will pay an interest rate of 6.7%, informed the treasury ministry.
“According to the institution, the issue was mostly bought by ‘small, individual investors’, who acquired the bonds through stock brokers; other purchasers were Retirement Funds”, reported Elsalvador.com.
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The treasury has issued 2% less bonds than planned, due to poor investor appetite for these securities.
In the first six months of the year, the Ministry of Finance intended to raise ¢975 billion ($ 1.933 billion) in the local market. However, poor demand for securities in national currency has forced the agency to aim for a figure slightly lower than projected.
The Salvadoran government placed $ 653 million in bonds in the international market on January 25 .
The acquisition was announced at 9:30 am local time (10:30 New York time) and three hours later, demand had reached $ 1,628.9 million, more than double the amount offered by El Salvador, reflecting the strong international interest in acquiring the Salvadorans bonds.
The Ministry of Finance issued $ 10.5 million in dollar-denominated securities and $ 103 million in Quetzales (Q802 million).
Most of the placement was made at 12 and 15 years, $ 66 million and $ 16 million, respectively, paying interest of 8.8% and 9% respectively in Quetzales.
The issuance of Eurobonds, maturing in 2025, was placed on the New York Stock Exchange.
The operation received offers for $3 billion, and the final rate of return stood at 5.875%.
"For the Ministry of Finance and the financial agent the Banco Central de Reserva de El Salvador (BCR), the placement of the $800 Eurobonds in the international market was "successful " because it was carried out in one operation.