Ecuador’s Government placed two billion dollars in sovereign bonds, but in international markets

The Government placed this September 24, $ 2 billion in sovereign bonds in international markets.

Of the total amount, $ 600 million will expire in five years maintaining an interest rate of 7.88%; and $ 1.4 billion will stay for ten years with a rate of 9.50%.

Ecuador’s Government placed two billion dollars in sovereign bonds, but in international markets

According to the Minister of Economy and Finance, Richard Martínez, Ecuador took advantage of investor confidence in the country’s economic sustainability.

“The transaction was well received, with a demand that reached 2.4 times the amount issued from more than 200 different high-quality accounts,” he said in a statement.

“Giving the necessary slack to close a transaction in favorable conditions,” he added.

According to Martínez, the $ 2,000 million will cover the needs programmed in the General State Budget for this year 2019.

They are “freely available resources for the financing of priority investment programs and projects for the country, as well as for the strengthening of reserves.”

The operation is “interesting” for Gonzalo Cucalón, general manager of the Banrio securities house, in the midst of the national and foreign economic situation.

“The rates have fallen in the US, also in Europe there are several countries that are with negative rates.”

In addition, the price of a barrel of oil also favors the conditions. The cost of the WTI has ranged between $ 53 and $ 55 this month, above the $ 50.05 budgeted.

These conditions influence the country risk that in this last month has registered downward values.

The lowest value was recorded until Sunday, September 22, 2019 with 608 points. “So an issue at that time does not seem far-fetched,” said Cucalón.

Source: https://www.eltelegrafo.com.ec/noticias/economia/4/ecuador-colocacion-bonos-soberanos