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."

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