The transportation system Montevideo will begin the year by issuing debt securities for 37.3 million dollars with the objective renew the fleet with fully electric units and for the implementation of a new technology.
These securities representing structural debt are for 248 million Indexed Units (UI)that is, a total of 37.7 million dollars and will be issued by the Financial Trust of the Financing Fund. The trustor of the issue is the Montevideo Municipality (IMM) in her capacity as administrator of the fund.
Meanwhile, transport companies that are already obliged to make a contribution to the prepayment of the issue and that are part of the fund are COME, UCOT, Coetc and Cutecsa. For its part, the structuring of the trust had the legal advice of Ferrere, the financial advice of CPA Ferrere and has as trustee EF Asset Management Investment Fund Manager.
What are the objectives?
One of the main goals of these titles is the incorporation of between 80 and 90 electric buses to the transportation fleet of Montevideo. On the other hand, it is also expected to renew the technology of some units that have been obsolete for more than fifteen years.
Currently the transport fleet has 1,500 buses, of which 30 are electric. With this investment, 8% of the total units could be reached, according to the coordinator of IMM Investments, Pablo Ferrari, to El País.
For its part, it is also intended to update the ticket vending machines – which were installed in 2006 – and which are now obsolete because they use 2G technology.
The keys to the titles
The subscription for the titles it will be between February 7 and 8 and will be published in the Electronic Stock Exchange (Bevsa) in two sections and by price. The first section will be competitive and will be for 90% of the issue of which institutional investors will participate. Meanwhile, the non-competitive will be the second tranche for 10% of the issue, of which the small saver
The interest rate will be 4.5% linear annually, while the grace period for the investors begin to receive their amortizations will begin six months after the start of the issue. Once the month has ended, the trustee will proceed to capitalize the interest generated and, in turn, the amortizations will take place the following month.
The trust period may vary depending on the collection of the companies, but it is expected that the prepayment will have a scope of 11 years and 11 months, while the payments will be in Uruguayan pesos at the value of Indexed Units of the quote for each payment date.