Costa Rica Issues $325 Million in Debt

During the auction held on February 1, 2021, the placement of domestic debt securities in local currency amounted to the equivalent of $210 million and in dollars to $115 million.

Tuesday, February 2, 2021

Through this mechanism, ¢129,667 million ($210.5 million) in Domestic Debt Securities Fixed Rate Colones and Sovereign Adjustable Real Domestic Debt Securities were allocated, informed the Ministry of Finance.

Check out the "System for monitoring markets and economic situation in Central American countries", elaborated by CentralAmericaData.

The press release states that "... of the total amount of the auctioned securities, Internal Debt Fixed Rate Colones with maturity in 2024, 2028 and 2036 were issued with maximum assigned yields of 6.04%, 8.90% and 9.30%, respectively. In the first two series, the issuance yield was reduced by 28 basis points (bps) and in the third series by 45 bps, with respect to the yields of the sovereign curve. In addition, Real Adjustable Sovereign Adjustable Internal Debt Property securities with maturity in 2029 and yields of 6.92% were assigned."

The document adds that "... in addition, more than US$115.8 million were allocated in Property Internal Debt Fixed Rate Dollar Securities and Property Zero Coupon Dollar Securities, with yields of 3.75% for the zero coupon securities, maturing in 2022 and of 4.59% and 5.87% for the Fixed Rate Dollar Securities, maturing in 2023 and 2025."

Elian Villegas, Minister of Finance, explained that "... For three consecutive weeks we have made issuances that exceeded ¢100 billion in each one of them, with a wide participation of the stock market sector. We see how the behavior of the yields at which the securities were assigned in the last weeks continues to fall and, therefore, investors are willing to pay more for our issues. This behavior in the local market is consistent with that registered in the international markets and in the local secondary market. Once again, the investment community shows confidence in the medium-term strategy promoted by the fiscal authority."



More on this topic

Debt Market: Costa Rica Issues $214 Million

November 2020

Through a competitive auction of domestic debt securities denominated in Colones, on November 9 the Costa Rican government issued the equivalent of $106 million in the primary market maturing in 2024, $81 million in 2026 and $27 million in 2031.

With this allocation the Treasury reached 80.6% of the maximum amount of issuance for ¢1.8 billion, announced last August 25, during the presentation of the debt plan for the second half of the year, the authorities informed.

Costa Rica Issues $1.5 Billion in Eurobonds

November 2019

On November 12, the debt securities were sold in the international market, and at the end of the negotiation, bonds were issued for $1.2 billion maturing in 2031 and $300 million maturing in 2045.

The negotiation of the public debt issued by the government of Costa Rica in the international market closed at noon on November 12, and the yield for those maturing in 2031 was 6.25% and for those expiring in 2045 was 7.25%.

No More Investor Confidence?

August 2019

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.

Costa Rica: Government Issues $475 Million in Debt

March 2019

The Ministry of Finance reported that the placement was made through an extraordinary auction of domestic debt securities in the local primary market.

Costa Rican authorities informed that the collection was made through fixed rate securities in dollars with expiration in 2024, 2026 and 2029, and was assigned to 15 different stock exchange positions.


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