Strong Demand for Costa Rican Bonds

The Finance Ministry initially offered $10 million in certificates but after a surge in demand ended up issuing $62.8 million in dollar bonds maturing in 2025.

Monday, August 29, 2011

Although the initial amount put up for auction was $10 million, bids for these certificates in the market totaled $65 million, that is to say 6.5 times the amount to be auctioned.

The entity did not miss out on the opportunity, and to everyone’s surprise assigned a total of $62.8 million.

The size of the bids varied within the range of $25 billion to $44 million, which means that both institutional portfolios and private clients participated. The bond was assigned with an average yield of 5.83%.

Also in the auction was the allocation of $2.8 million in government bonds maturing in 2017, with an average yield of 3.85%, and also in dollars.

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From Aldesa's Pulso Bursátil Blog

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The auction of bonds maturing in April 2013 that traded on the secondary market at a yield of 8.95%, was assigned 9%.

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According to a Blog by Aldesa, Pulso Bursatil:

The certificate has a coupon of 5.5% on a quarterly basis and was in demand by individual investors primarily because the average amount of the 105 offers was for $110,000.

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The results of the auction of Treasury bonds, held this week, show the clear preferences of the Costa Rican investors, who at this juncture do not perceive greater economic stability in the long term

Little Interest in Costa Rican Public Debt

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ALDESA's blog reads:

Little Interest in Government Bond Auction

The treasury held an auction of bonds in colones on Monday in the primary market, where investors through brokers-dealers could buy at a certain price and performance.

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