The South American giant placed a green bonus with a term of seven years in the US market and a return of 6.5% annually; With this, he managed to raise 2,000 million dollars; This bonus competes with Bond Indexed to Uruguayan Climate Change Indicators than a lawsuit for 2,701 million dollars.
He National Treasure of Brazil He highlighted in a statement that the issue “represents a new milestone in public debt management” and that it reaffirms the country’s commitment to sustainable policies. In that sense, they highlighted that the issuance is “converging with the growing interest of non-resident investors and with the expansion of the thematic bond market in the world.”
Of the total issued – which was 2,000 million dollars – 75% of the bonds were acquired by investors Europeans and those coming from North Americawhile the remaining 25% are investors latin americans, including Brazilians. The bond has a term of seven years and has a yield of 6.5%.
The funds raised by the bond have the objective of helping to finance actions focused on Environmental Conservation as the Conservation of natural resourcesclimate change mitigation and social development sustainable.
Uruguay and a successful placement of the green bond
The Ministry of Economy and Finance (MEF) defined the reopening operation as successful of the global dollar bond indexed to Climate Change Indicators (BIICC) with an operation that is equivalent to 700 million dollars, and at a rate of 5.6% annually, corresponding to a differential of 95 basis points with respect to the reference bond of the United States Treasury. Investor demand was for about 2,701 million dollars.
The operation served to complement the government’s funding schedule for 2023, reaffirm the sovereign financing strategy aligned with the environmental objectives of Uruguay, and diversify the investor base of government securities, accessing other markets and investors focused on sustainability objectives.
There were 139 investors who were present in the order book, of which 15 invested for the first time in a sovereign security of the Uruguay. 89.5% of the demand for the bond came from these foreign accounts, while the remainder was from national investors, according to official data from the MEF.
Likewise, within the international accounts, the bulk of the demand originated in USA and the United Kingdom, with the presence of the largest accounts focused on emerging markets with high credit ratings.
However, investors from Germany, Austria, Canada, Chile, Denmark, United Arab Emirates, Ireland, Japan, Netherlands, Czech Republic and Singapore. And even government agencies South Korea and Swiss.