The issuance of Debt Fund Vintended for the financing of Arazatí project for 300 million dollars and managed by the development bank of Latin America and the Caribbean (CAF) for the construction of the new water treatment plant in Uruguay, Yesterday it completed its issuance in both the wholesale and retail sections, and doubled the offer.
After the postponement to Thursday the 29th of the broadcast of the Infrastructure Debt Fund V —the original schedule called for the tenders to be held on Monday the 26th and Tuesday the 27th—the operation was carried out by the CAF-AM, the fund management entity CAF.
Through the Montevideo Stock Exchange (BVM) and of the Electronic Stock Exchange (Bevsa)a total of 2,000 million was offered Indexed Units (UI), equivalent to about 300 million dollars that will be used to finance part of the project Arazati, as well as other infrastructure projects in the country for a maximum period of 30 years.
The broadcast was a great success, since, according to the CAF, the demand of investors was more than double the offer of debt securities. In that sense, in the wholesale section it was 624 million dollars, while in the retail section it was 9 million dollars.
Finally, of the total of 300 million dollars corresponding to the total amount of the debt investment, 291 million were awarded to the wholesale sector – whose bidding was from 10 to 12 on Thursday -, and the remaining 9 million dollars were awarded to the retail sector —from 12 to 15—, among which were AFAP, insurance companies, financial intermediation institutions and institutional investors.
“We are convinced that this fund will represent a new impetus for the development of initiatives that will result in improving the quality of life of Uruguayans, such as the Arazatí project”, manifested Miguel Ostos, representative of CAF in Uruguay and director of CAF-AM Uruguay.
The biggest issue of the year
If government emissions are left aside, the bidding of the CAF for 300 million dollars in Indexed Units (UI) —a total of 2,000 million UI— is the largest debt issue in the Uruguayan capital market so far this year.
Through participation certificates, the objective is to finance infrastructure projects in the country with senior debt over a maximum period of 30 years. The international organization will co-finance at least 10% of the debt investment and the minimum return on the Sovereign Interest Rate It will be 2.25% in UI.
In this way, the tender will finance 85% of the project Arazati, whose total estimated cost is 360 million dollars; The remaining 15% will be contributed by the consortium promoting the private initiative, Waters of Montevideo —made up of companies Saceem, Berkes, Ciemsa and Fast.
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 quote in the Electronic Bag Uruguayan Securities (Bevsa) and in the BVM and will have to National Financial Corporation for the Administration of Investment Funds SA (Conafin Afisa) as fiduciary agent and paying agent.
Source: Ambito
