As part of the Internal Indebtedness Plan for the second half of the year, the Ministry of Finance auctioned a new title called Adjustable Sovereign Real Property Title (TPRAS), whose main feature is the indexation of coupons to the net yields of the Sovereign Curve calculated by the Central Bank of Costa Rica.
According to the Treasury, the new title has benefits, both for investors and for the issuer.
The investor benefits from the diversification of the portfolio, by offering a new investment option, as well as a lower volatility, due to the fact that the prices are aligned with the conditions prevailing in the market.
On the other side, the issuer has the possibility to decrease the debt service in comparison with long-term fixed rate titles, and it also provides a new instrument for public financing.