The Administration of President Enrique Peña Nieto has stressed its commitment to consolidate
macroeconomic stability, to count with healthy public finances and to make responsible use of public
debt. In this regard, and in order to maintain and strengthen public debt’s management communication
and transparency, the Ministry of Finance and Public Credit (SHCP) announces the government
securities auction calendar for the third quarter of 2014. This schedule is consistent with the Economic
Program approved by Congress for the 2014 fiscal year. Moreover, the announcement is consistent
with the 2014 Annual Borrowing Program released on December 19th
, 2013.Important Aspects
The most important aspects of the government’s securities issuance strategy for the third quarter of
2014 are the following:
Exchange and Repurchase Transactions
- During the third quarter of 2014, the mechanism adopted since the 2nd quarter of 2013 to
determine the amount to be issued of the 28-day and 91-day Cetes will continue to be used.
This mechanism consists in announcing each quarter a minimum and a maximum amount to
be issued each week. In this way, the weekly issuance amount of these instruments will be
between these specific amounts.
- For the third quarter of 2014, the 28-day Cetes weekly minimum and maximum issuance
amount will be 4,000 and 9,000 million pesos, respectively. The 91-day Cetes weekly minimum
and maximum issuance amount will be 7,000 and 12,000 million pesos, respectively. In the
first week of the quarter, 5,500 million pesos of 28-day Cetes and 9,500 million pesos of 91-
day Cetes will be auctioned. The amount to be issued each week will be specified in the
weekly auction announcement of the Central Bank.
- As previously announced, syndicated auctions are now conducted using a more flexible
format. These operations will no longer be announced as part of the quarterly calendars nor as
substitutes of primary auctions.
- Hence, these auctions could be performed in any quarter of the year and the amount to be
auctioned may be in addition to the quarterly issuance scheduled for that instrument. The
announcement of the syndicated auction will be held in the week prior to its issuance.
- This format allows the Federal Government to choose the right timing for each transaction
based on investors’ appetite and market conditions.
- The syndicated auctions of stripped 30-year Udibonos will continue to take place every twelve
weeks. The amount to be auctioned will be announced the week prior to the transaction.
- Please note that starting on the third quarter of 2014, the Udibono due Dec-17 (S171214) will
replace the (S160616) as the new 3-year inflation-linked bond benchmark, the Mbono
(M180614) will replace the (M171214) as the new 3-year benchmark and the Mbono
(M181213) will replace the (M180614) as the new 5-year benchmark. This strategy was
designed to increase liquidity in previously issued bonds.
- The auctions of Cetes, Nominal Fixed-Rate Bonds, Udibonos, Bondes D and the syndicated
auctions of stripped Udibonos to be executed in the third quarter will have the following
The Ministry of Finance may execute exchange and repurchase transactions during the third quarter
of 2014. These transactions may involve the different securities that are issued. The exchange
transactions run by the Ministry may be executed periodically and will take place as long as the market
conditions are conducive to their successful execution.
In case one of these transactions is executed, the Ministry will specify, through the Central Bank, the
instruments and the amounts involved.