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The BCU authorized the issuance of a forest trust for US$ 55.5 million

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The name is “Fideicomiso Financiero Eucalyptus del Sur” and its objective is to maximize the profitability of its investors in the medium to short term.

Photo: South Atlantic Forestry

He Central Bank of Uruguay (BCU) announced the authorization for the issuance of a financial forest trust for an amount of up to $55.5 million, which has the objective of maximizing the profitability of investors in a sustainable project.

“Eucalyptus del Sur Financial Trust” is the name of the financial trust from which the Central Bank of Uruguay authorized its issuance. With a total amount of up to 55.5 million dollars, the trust has an internal rate of return of the project of 8.61% for a baseline scenario.

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Titles will be issued by 25 years, although they could be extended for a maximum of 30 years. The fund organizer is the company Nobilis Corredor de Bolsa, while the trustee will be Winterbotham Fiduciaria SA Investment Funds Administrator. Plantesia Forest Asset Management, for its part, will be the administrator of the trust.

The trust seeks to obtain the highest possible return for its investors within a medium to short termin a project that they consider sustainable both from the economic, social and environmental side.

The irrigation rating agency CARE specified that, with the proceeds from the issuance, a forestry asset of 11,300 hectares, of which 7,300 are actually planted. The risk rating agency establishes that the forests will be planted with the type of tree eucalyptus globulus, where its main objective will be the creation of cellulose or chips.

The forestry industry grows in Uruguay

Uruguayan industrial production has undergone significant changes in recent years, and one of the main ones is forest industrial development. The commissioning of two large-scale pulp mills, to which a third will be added this year, has put the Uruguay as one of the main exporters of short fiber pulp (eucalyptus) of the world. These plants operate under a free zone regime and have as main markets Europe and China. Pulp production rose in December 8% compared to the previous month, although the annual average closed with a drop of 3.5%.

Likewise, industrial investments that work with physical wood have accumulated, such as sawmills, plywood plants, etc. This sector grew up 26% in December and ended 2022 with an advance of 19%. At the beginning of February, the installation of a new plywood plant of the company was announced. LUMIN in long hill, adding the company its third plant in Uruguay. In this case, the markets are diverse, with placements in Europe, USA, Central America and other countries.

Source: Ambito

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