The CAF-Development Bank of Latin America and the Caribbean approved Debt Fund V, through which it will issue debt for 300 million dollars in Indexed Units (UI) to advance the works of the Arazatí project.
Through the title, which will be tendered on Monday the 26th and Tuesday the 27th through the Montevideo Stock Exchange (BVM), The international organization consolidates itself as the main manager of the Uruguayan stock market, with 935 million dollars between the different funds, managing 14% of the circulating values and followed by the Uruguayan Road Corporation (CVU), with 13%; and UTE, with 10%.
CAF will issue participation certificates for about 300 million dollars to finance with senior debt to infrastructure projects in the country within a maximum period of 30 years. The organization will co-finance at least 10% of the investment in debt and the minimum performance on the Sovereign Interest Rate will be 2.25% in UI.
The issue was rated BBBfc (uy) by FixScr and BBBf.uy for Moody’s, while the fund was registered in the Central Bank of Uruguay (BCU), will be listed on the Uruguayan Electronic Stock Exchange (Bevsa) and in the BVM and will have the National Financial Corporation Administrator of Investment Funds SA (Conafin Afisa) as fiduciary agent and payment agent.
A fund aimed at completing the Arazatí project
Fund V aims to consolidate the financing of the Arazatí project, a work promoted by the government to face a possible new drought and seeks to improve the security of supply of drinking water to the Metropolitan System and route services of the department of Saint Joseph, with the provision of 200,000 cubic meters of drinking water daily.
The cost of the initiative is about 360 million dollars, so this fund allows financing 85% of a project of vital importance for the water security from the country. According to reports, the remaining 15% will be contributed by the Aguas de Montevideo Consortium, project promoter.
Resource consolidation
The executive president of CAF, Sergio Diaz-Granadoslaunched the fund together with the president of the BCU and alternate director of the CAF Board of Directors, Diego Labatin addition to other authorities and investors.
“This initiative has made it possible to mobilize and consolidate resources from third parties in the region and the private sector, impacting at different levels, not only with material infrastructure, but also in services, that is, facilitating and improving the quality of life of the beneficiaries at different points. of the country,” said Díaz-Granados.
And I add: “CAF It is largely financed with issues in international markets, but all its investments are focused on the development of its member countries, so, as a development bank of Latin America, “We channel funds from around the world to development projects in the region, and these beneficiaries are none other than Latin Americans themselves.”
Source: Ambito
