Cutcsa placed debt for more than US$23 million

Cutcsa placed debt for more than US million

The bus company seeks to acquire a fleet of electric vehicles and achieve a reprofiling of its financial liabilities.

Photo: Presidency

The Uruguayan Company of Collective Transport SA (Cutcsa) placed debt for almost 23 million dollars150 million Indexed Units (UI)— through the CUTCSA 1 Financial Trust in the primary stock market, seeking to acquire a new fleet of electric vehicles and achieve a reprofiling of its financial liabilities.

The trust of the public transport company was divided into two instruments, a competitive one for 135,805,049 UIfor which 14 transactions of more than $21.1 millionand another non-competitive for 14,194,951 UI with 1 transaction over $2.2 millionaccording to the daily summary of the Electronic Stock Exchange of Uruguay (Bevsa).

The debt securities placed have a term of 7 yearswith a duration of 3.7 years and one BBB.uy rating (CARE). At the same time, the coupon is 4.75% per year and the Internal Rate of Return (IRR) average is 4.27% per year. The IRR of the Cutcsa Financial Trust has a spread of 115 basis points on the sovereign curve in UI.

At the beginning of this month, Cutcsa’s tender, with which it will be able to continue carrying out its 2020-2025 investment plan, had received authorization from the Superintendency of Financial Services (SSF) of the Central Bank of Uruguay (BCU).

“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 by the risk agency Care, which rates the titles with the BBB.uy investment grade note.

They will be for a seven-year term; and the amortization, after a one-year grace period, will be in 72 fixed installments (six years) of principal and interest.

Cutcsa seeks that 25% of its fleet be electric

The destination of the funds that Cutcsa obtained through the trust —at the expense of the trust company EF Asset Management Administradora de Fondos de Inversión SA— is mainly the gradual replacement of the diesel bus fleet by electric buses. The plan establishes that by the end of 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 load centers.

Source: Ambito

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