The transportation system Montevideo placed debt securities for 37.3 million dollars, through a successful issue that was carried out through the Uruguayan Electronic Stock Exchange (Bevsa).
He Financial Trust of the Financing Fund for the Technological Renewal of Urban Collective Transport of Montevideo I offered titles for 248 million Indexed Units (UI) for the purchase of electric buses, receiving offers for 463 million UI, which means that demand exceeded supply by 87%.
Based on the offers received in the competitive section, which took place on Wednesday, the issuer determined the average price that would correspond to an award of 90% of the issue, which was 106.15% and was used as the sole price for the placement of the non-competitive (retail) tranche this Thursday.
Finally, 248 million UI were awarded, with an average price of 106.03%, which represents a yield rate average for the investor of 3.48% annually. In this way, global demand and the average price made it possible to significantly reduce the financing cost for companies in the system, which was determined at just 50 basis points above sovereign debt securities in comparable terms.
It is worth noting that the trustor of the issue is the Montevideo Municipality (IMM) in her capacity as administrator of the fund. The securities have an associated coupon of 4.5% annual linear interest in UI, with payments of monthly installments of capital and interest.
In turn, 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. While 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.
In Montevideo they assure that it was “a support for the solidity of the system”
The Director of Transportation of the Municipality of Montevideo, Pablo Menoni, He highlighted that “the success of the offer received is an endorsement of the solidity of the system, and above all the seriousness and commitment with which all its actors; companies, workers and authorities; “They face their responsibilities.”
While, Agustín Gattas, Bevsa Markets Manager, highlighted the trust modality. “It allows for the promotion of investments in projects of vital importance for citizens, by channeling financing to improve public transportation and the environment, which in turn is essential for energizing the stock market,” he noted.
Along these lines, he expressed: “We are proud to make available to the various agents a tool and an environment that generates trust and promotes the development of the economy.”
The objective of debt issuance
By highlighting the objectives of the trust, in the IM they indicated that they seek to incorporate 100% electric buses, add infrastructure and technology to improve service and cancel debts incurred to meet these objectives.
Specifically, the goal is to add between 80 and 90 vehicles of these characteristics to the current fleet, which has 1,500 buses in total, of which only 30 are electric.
“These funds will be used to improve the quality and comfort of the units, meet our commitments to emissions reduction and expand the payment methods for tickets. With all this we hope that more citizens choose the public transport”, Menoni assessed how the money will be used.
Source: Ambito
