Guatemala Issues $28 Million in Treasury Bonds

©image: Fernando Reyes Palencia

The event, which took place in the local exchange, saw the minister receive offers for a total of $39.64 million, with 96% coming from private investors and the rest from the public sector.

In addition, 93.7% of the demand was for terms of 11 and 15 years, though the minister also offered terms of 2, 4 and 7 years.

Source: Ministerio de Finanzas Públicas (Guatemala)

More on this topic

Loan to improve government management in Guatemala

November 2008

The IDB will provide an $8.5 million loan for a project that seeks to increase efficiency and promote transparency in the Ministry of Finance.

The program will focus on improving the internal process of the Ministry and to seek responsibility for government spending.

The objective of the IDB is to help the ministry become an more modern and effective institution, the bank said in a release.

Guatemala Launches Bond Issue

June 2010

On June 15 the Finance Ministry will start selling $560 million in Treasury Bonds in the domestic securities market.

They will use an auction-based method to sell the securities, and they are currently considering whether to offer the bonds in the international market.

“The issue will be split in 2-year, 5-year, 7-year, 10-year and 15-year securities, and the interest rates will be defined by the market.

Guatemala Places $48 Million in Bonds

June 2010

After the first auction, the finance ministry issued just $48 million in bonds, even though domestic investors demanded $308 million.

In a press release, the ministry explained that “interest rates offered by investors were not adequate”.

Authorities only placed 15-year securities, paying a 9% interest rate in local currency. 72% of the market’s demand was focused on 10 and 15-year securities.

Guatemala Allocates $ 113 Million in Bonds

February 2011

The Ministry of Finance issued $ 10.5 million in dollar-denominated securities and $ 103 million in Quetzales (Q802 million).

Most of the placement was made at 12 and 15 years, $ 66 million and $ 16 million, respectively, paying interest of 8.8% and 9% respectively in Quetzales.