Debt Market: Costa Rica Issues $214 Million

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.

Tuesday, November 10, 2020

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.

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From the Ministry of Finance's statement:

San Jose, November 10, 2020. The Ministry of Finance issued this Monday, November 9, ¢132.272 million, in nominal amount, in the primary market, through a competitive auction of internal debt securities. In this Monday's event, investors offered a total amount of ¢137.268 million.

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

"This auction confirms the confidence of the financial sector in the management of public finances and shows the resilience of the domestic public debt market to close the gap between income and expenditure of the Central Government. The commitment to reach a lower figure of projected financial deficit remains in force and we are committed to reach a lower figure by the end of the year," said Isaac Castro, Deputy Minister of Expenditure.

Through the management carried out this Monday, property titles of internal debt fixed rate in colons were issued, with maturity in 2024, 2026 and 2031. The maximum yield assigned for the series maturing in 2024 was 6.32%, for the series maturing in 2026 8.00% and 9.34% for the series maturing in 2031.

The issuance of securities according to their year of maturity was as follows:

Year
Amount in millions of colones
2024
¢65.489 millions
2026
¢50.150 millions
2031
¢16.633 millions

According to the National Treasury, up to date the Treasury has managed to place titles in colons in the primary market, for an amount of ¢1,450,860 million during the second semester, this has allowed to satisfy the financing needs, without pushing up the interest rates, with the consequent benefit for the local market.



More on this topic

Costa Rica Issues $325 Million in Debt

February 2021

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.

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.

Guatemala Keeps Placing Public Debt

July 2019

The Ministry of Finance Awarded Treasury Bonds in local currency for an equivalent amount of $19 million, at a cut-off rate of 6.2% and expiring in August 2034.

In the event of issuance of Electronically Registered Representative Certificates in Custody in the Banco de Guatemala, a demand for $42.9 million was received, corresponding in its entirety to the maturity date of 11/23/2039.

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.


Guatemala Issues $18 Million in Debt

March 2019

The Ministry of Finance issued Treasury bonds in local currency in an amount equivalent to $17.5 million for a 20-year term.

From the Ministerio de Finanzas Públicas press release (equivalent to the US Department of the Treasury):

March 5, 2019. The Ministerio de Finanzas Públicas [Roughly equivalent to the US Department of the Treasury] held the sixth issuance event of Treasury Bonds of the Republic of Guatemala for the 2019 Fiscal Year, in which a 20-year term series was opened for the first time, for the maturity date 17/05/2039, with a coupon rate of 7.6250%, observing that of the total demand 64% corresponds to such series, which results in the confidence of investors in public securities, whose results are the following:

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