The BCU authorized the bus company to create and register the Cutcsa Financial Trust, through which it will seek investments for the purchase of electric buses.
The Uruguayan Company of Collective Transport SA (Cutcsa) will issue debt in pesos for the equivalent up to $23.3 million after the authorization of the Superintendence of Financial Services of the Central Bank of Uruguay (BCU)and with the objective of obtaining financing for investments.
Cutcsa obtained the official authorization to register in the registry of the Stock market debt securities to be issued under the new Cutcsa Financial Trustwhich the company promoted to obtain the necessary financing to comply with its investment plan 2020 – 2025 —mainly oriented to the purchase of electric buses—, as well as to improve its financial profile.
In this way, the transport company will be able to issue debt for up to 150 million Indexed Units (UI)which is equivalent to 23.3 million dollars, according to the current exchange rate.
“The guarantee for the repayment of the titles are the credits that Cutcsa has the right to receive from the STM Trustor any other centralized collection system that could replace or complement it in the future”, says a report from the risk agency Care, that qualifies the titles with the investment grade BBB.uy note.
The same will be seven year term; and the amortization, after a one-year grace period, will be in 72 fixed installments (six years) principal and interest. Although the interest rate will be defined at the time of issuance, the calculations were presented based on 4.48% per year in UI.
Investment for a sustainable vehicle fleet
The destination of the funds that Cutcsa seeks to obtain through the Trust —at the expense of the trust company EF Asset Management Administradora de Fondos de Inversión SA— and the issuance of the bonds is, mainly, the gradual replacement of the current diesel bus fleet by electric buses. The plan establishes that by the end of the period (2025) they have replaced 25% of the fleetbetween 250 and 300 buses.
This investment also has the additional costs that arise from the need to adapt the parking lots in cargo centers. With the proceeds from the debt strategy, the cancellation of current liabilities and reprofiling of the company’s debt structure.
Source: Ambito
