The Central Bank expects to issue Monetary Stabilization Bonds during the second semester of the year, for the equivalent of $792 million.
Thursday, August 22, 2019
The Central Bank of Costa Rica (BCCR) will maintain the issuance strategy carried out in recent years, issuing bonds through competitive auctions. Specifically, there will be monthly auctions of zero coupon instruments for 6 and 12 months, as well as fixed rate bonds for 2 years, the institution said.
San José, 21 August 2019. Consistent with Macroeconomic Program 2019-2020 and its July review, during the second semester of 2019 the Central Bank of Costa Rica (BCCR) expects to issue Monetary Stabilization Bonds (BEM) in the primary market for the sum of ₡450 000 million.
This amount is similar to the volume of maturities that will face during the second half of this year. Thus, the Central Bank expects that by the end of 2019, the bond balance will be around the same level that was observed last June 30. The mentioned issuance amount does not include the net issuances that may be necessary as a result of eventual exchange operations that the Central Bank must carry out during the semester.
The BCCR will maintain the issuance strategy carried out in recent years, issuing bonds through competitive auctions. Specifically, monthly auctions will be held for 6 and 12-month zero coupon instruments, as well as for 2-year fixed rate bonds.
In addition, the allocation rates are expected to be consistent with policy decisions taken by the Board, thereby strengthening the transmission of monetary policy.
The presentation of the issuance strategy took place on Wednesday, August 21 and was preceded by a presentation by Mr. Rodrigo Cubero Brealey, President of the Central Bank, who referred to the macroeconomic outlook for the 2019-2020 biennium.
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The Central Bank announced that for the first half of 2020 it expects to issue $438 million in the primary market, as Stabilization Bonds.
From the BCCR statement:
San José, February 27, 2020. Consistent with monetary policy goals, the Central Bank of Costa Rica expects to carry out an issuance of Monetary Stabilization Bonds (BEM), in the primary market, for ₡250.000 million.
Although the goal for this year was to issue $100 million in debt bonds, during the first quarter the Nicaraguan government only awarded $1.1 million, doubting the level of investor confidence.
According to the "Public Debt Report, First Quarter 2019", prepared by the Central Bank of Nicaragua, from January to March regarding Investment Securities in dollars, 1.03 million was issued at an average rate of 5.31% and an average term of 7 months.
The issue was announced at an initial rate of 7.5% and a 30-year term, and $1.097 million was issued, with total demand five times greater than the amount of the issue.
The issue was for a 30-year term, maturing in 2050 and with a 7.1246% coupon, informed the Central Reserve Bank (BCR).
The aim of the government's debt plan for the second half of the year is to capture up to $2.43 billion in the local market, in addition to the $1.5 billion expected to be placed in the international market.
In its strategy for the coming months, the Government will manage liabilities (swaps and reverse auctions) for the series maturing in both colones and dollars.
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