He Stock market of Uruguay had a great year that closed with two important broadcasts by the National Administration of Power Plants and Electric Transmissions of the State (UTE) and the Road Corporation of Uruguay (CVU); but it was marked by an important operation that broke monthly records.
The Uruguayan Electronic Stock Exchange (Bevsa)at the end of November, reached more than 400 million dollars in issues, according to the general manager of the institution, Eduardo Barbieri, to Radio Monte Carlo. This total operation meant, in turn, a 15% growth in dollarswhich is expected to be maintained towards the end of the year – when the final balance is known.
For Barbieri, “it was a good year” in terms of both the stock market and the money and exchange markets. Likewise, he mainly highlighted the bond issues, “bulging at the end of the year” thanks to the operations of UTE and CVU. “The issuance of negotiable obligations or trusts that allow long-term financing are appropriate instruments to recover investments,” said the Bevsa manager.
Although December was marked by these two important movements, Bevsa broke two records during the year: the first, in terms of operations for the first semester, when it achieved 37,392 million dollars – an interannual growth of 20.9% -, the largest since 2013.
The second record was in November, which marked the highest monthly volume in all of 2023 and the third best record in Bevsa’s 30-year history. Transactions in the secondary market reached 100 million dollars, mainly thanks to the historic total issuance of bonds by the Ministry of Economy and Finance (MEF).
UTE and CVU operations
In mid-December, Corporación Vial del Uruguay placed 166 million dollars in debt securities within the framework of its CVU III Financial Trustwith which it seeks to finance road works on national routes of the 2020-2024 five-year plan.
The trust had three series, of which one was in Pension Units (UP), another in Indexed Units (UI) and another in Dollars, each in two tranches, having one retail and another wholesale for institutional investors. The demand reached 191 million dollars, divided into 73.9 million dollars in UI, 77.7 million in UP and 15 million dollars in the remaining tender, with awarded prices of 99.52 in both UI and dollars, while in UP it was 99.22.
He financial trust —whose operation was subscribed through the screens of Bevsa— will have semiannual interest payments starting in June 2024, with a capital grace period of 12 years (until December 2035) and constant amortization from that date until June 2049. From CVU they specified that the series in UI will pay an annual interest of 3.80%; while the series in UP will have an annual rate of 2.25% and the dollar section will provide a return rate of 5.70%.
For its part, UTE placed debt securities through Negotiable Obligations (ON) for almost 214 million dollars in the search to finance new investments and reprofile previous maturities, in what was the largest issuance of non-sovereign securities so far this year, surpassing the one that CVU had carried out days before.
The autonomous entity issued 8,426 million pesos (almost 213.6 million dollars) in two series (A and B), the first in UI with a maturity of 22 years and an interest rate of 3.725% per year; and the second in UP with a maturity of 25 years and an interest rate of 2.2%.
Source: Ambito
