OT Exchange and Reverse Auctions – Description
Exchages/Reverse auctions are one of the methods used to implement the Republic of Portugal's Debt Funding Programme.
The funding programme does not provide a calendar for exchange/buyback auctions. Opportunities to perform bond exchanges and buybacks will be explored according to market conditions.
The specific characteristics of each auction are announced directly to the Primary Dealers (OEVT) and Other Auction Participants (OMP), in the website, Bloomberg and Reuters up to the day before the auction date. The time of the auction is indicated in the auction announcement. Settlement takes place two working days after the auction date (T+2).
Reverse auctions may constitute a way to buyback securities at the most competitive price, after assessing Counterparties’ proposals. Auctions are supported by an electronic system – the Bloomberg Auction System (BAS). Alternatively, they can also be performed with a fixed price (communicated to the market) in order to reduce uncertainty for investors.
Exchange auctions allow to buyback securities offering other securities, usually through a new issue. This public debt management operation can be performed based on previously defined prices or through a competitive auction where the rates and/or amounts are decided by IGCP, E.P.E. Access to these auctions is limited to financial intermediaries to whom the Primary Dealer (OEVT) or Other Auction Participants (OMP) status has been granted by IGCP, E.P.E. |