Debt Issuance: Plans in Costa Rica

The Central Bank announced that for the first half of 2020 it expects to issue $438 million in the primary market, as Stabilization Bonds.

Friday, February 28, 2020

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.

This amount is like the volume of maturities that will be faced during the first semester of this year. Thus, the Central Bank expects that, at the end of June 2020, the balance of bonds will be around the same level observed at the end of the previous year.

According to the issuance strategy carried out in the last years, the BCCR will issue bonds through competitive auctions. Specifically, it will hold monthly auctions, with instruments with terms of close to six months (zero coupon) and two years (fixed rate bonds). So far, the BEM issuance reaches ₡113.017 million in traded value, which corresponds to 45% of the amount to be raised for the semester.

It is expected that the allocation rates will be consistent with the policy decisions adopted by the Board of Directors, thus reinforcing the transmission of the monetary policy.

In the activity, the National Treasury presented the results of debt issuance for the second semester of the previous year, during which securities were issued for ¢1.3 billion, amount equivalent to 93% of the requirement in the internal market. At the same time, there was a greater lengthening of the issuance period, a reduction in direct sales balances by 34% and a decrease in the maturities of liability management operations for the next few years.



More on this topic

Costa Rica Expects to Issue $792 Million in Debt

August 2019

The Central Bank expects to issue Monetary Stabilization Bonds during the second semester of the year, for the equivalent of $792 million.

The Central Bank of Costa Rica (BCCR) will maintain the issuance strategy carried out in recent years, issuing bonds through competitive auctions.

Guatemala Keeps Issuing Debt

August 2019

The Ministry of Finance of Guatemala awarded Treasury Bonds in local currency for the equivalent amount of $19 million, at a cut-off rate of 6.46% and maturing in November 2039.

The global amount awarded of Treasury Bonds of the Republic of Guatemala up to date, including the awards made through public tenders and auctions ascended to Q.18,083.29 million ($2.348 million), corresponding to Fiscal Year 2019, informed the government.

Successful Eurobond Issuance from El Salvador

July 2019

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).

Costa Rica: Ambitious Debt Plan

July 2019

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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