The amount to be tendered in UI is 200 million, that is, approximately 1,145 million pesos at today’s value; although, considering the flexibility with which the State can extend the award, an even higher figure could be expected after the process.
Diego Rodfinancial advisor to Gaston Bengochearecalled that, in August 2021, when the government issued this series of NT, the dollar was trading at 42.965 in Uruguay while yesterday it closed at 38.741, while the UI was trading at 5 and today it is at 5.7371.
If the amount offered is materialized, the current amount would amount to 5,578 million UI -31,953 million pesos-, according to the Public Debt Management Unit (UGD).
Among the conditions for the reopening of the Treasury Note, the MEF established a 2.5% annual coupon. In turn, interest payments will be semi-annual (August 24 and February 24 until 2034, due date). The amortization, for its part, will be in three annual, equal and consecutive payments in the last three years of the term, on August 24, 2032, 2033 and 2034.
The closing of the tender will be at 2:30 p.m. on Tuesday and the settlement will be the following business day, that is, Wednesday.
All local investors authorized by the Central Bank of Uruguay (BCU) may present their offers in this tender. Non-resident investors, for their part, may do so through a local bank or broker, or through Global Depositary Notes (tradeable on Euroclear, Clearstream and DTC), if available.
According to the UGD, “the tender will be structured as a single price auction, which means that all accepted offers will be awarded at the same price” and “the minimum amount of each offer will be UP 100,000, in multiples of UP 10,000”.
Source: Ambito
