Uruguayan Road Corporation (CVU) placed 236 million dollars in the first reopening of corporate debt of the year capital market national, whose titles were tendered through the Uruguayan Electronic Stock Exchange (Bevsa).
In this way, the company exchanged securities debt issued in previous years of the first, second and third series of the CVU III Financial Trust, which included bidding in Indexed Units (UI), dollars and Pension Units (UP), in order to complete the financing plan of infrastructure, linked to road works on national routes for the period 2020-2024.
The offers came from those investors who owned securities previously issued by CVU, which were among the Eligible Securities for the exchange, with the possibility of delivering those securities and additionally offering up to a maximum of 10% of cash and obtain in exchange a new CVU title with a longer term and new interest coupons.
The result of the tender
The subscription was made in three series, each in two tranches, one retail and other wholesaler for institutional investors, which was the only one where offers were received.
In total, 2,660 million were tendered U.P. (about 109.6 million dollars), with proposed prices between 94.53 and 103.44, with an average price of 99.03. The demand was 4,176,789,340 UP (about 172 million dollars), 57% higher than the supply available in the wholesale section. The cut-off price was 99.94, with which 2,293,695,296 UP (about 94.5 million) were finally awarded.
Meanwhile, 658.5 million UI (about 102 million dollars) with proposed prices between 97.66 and 101.93 and an average price of 99.78. The demand was 866 million IU (about 133.6 million dollars), 31% more than the available supply. In this case, the cut-off price was 99, while an expanded issuance amount was allowed, allocating 727,192,156 UI (approximately $112.2 million).
Finally, 100,357,000 were tendered Dollars, with proposed prices between 91.5 and 96.62 with an average price of 94.87. The cut-off price was 94.4, with which 30 million were awarded.
He financial trust will have semiannual interest payments starting in June 2024, with a 12-year principal grace period (until December 2035) and constant amortization from that date until June 2049.
The series in UI will pay a interest annual 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%.
A successful broadcast
The president of the National Development Corporation, José Luis Puig, He highlighted that the instrument “is important to obtain the financial resources that allow carrying out the works that the country needs to enhance its road and infrastructure development and at the same time improve the financing profile of the concession.”
In turn, the General Manager of Bevsa, Eduardo Barbieri, valued the “innovative bidding mechanism for the reopening of emissions”, as well as “the possibility of expanding the amount to be awarded for each of the series that, in addition to channeling investment funds for key projects for the country, are a contribution fundamental to boost the stock market and the economy.”
Source: Ambito
