He Ministry of Economy and Finance (MEF) placed a total of 1,250 million dollars in international markets, after the launch of the new bonus in Indexed Units (UI) due in 2045.
If the 300 million dollars are added to that sum after the reopening of the bonus 2033 in nominal weights, Uruguay issued debt for a total of 1,550 million dollars, at a time when financial conditions are favorable for this type of instruments.
The title to 2045 in UI that launched the MEF It had a demand of 1.4 billion dollars and an interest rate of 3.4% per year, something that was considered a good operation by analysts. Meanwhile, the reopening of the bond to 2033 in pesos it has an interest rate of 9.15% and the demand was 550 million dollars.
The issuance of the new bond had been anticipated by Ambit on Monday, after the MEF modified its annual report (18-K) before the United States Securities and Exchange Commission (SEC), prior step to a new placement in international markets.
In this way, it added a longer-term placement, since the previous longer-term title was in Indexed Units to 2040. To do so, it took advantage of the positive financial scenario, with a risk country at historic lows and the best credit rating of history, after the grade was raised by Moody’s Ratings to Baa1 (equivalent to BBB+).
Background in the international market
The last time the government placed global bonds It was on November 6, 2023, at the reopening of the Bond Indexed to Climate Change Indicators (BICC), while it continues with its strategy for this year, for which it will need some 4.21 billion dollars in financing, as published by the Debt Management Unit (UGD), dependent on the MEF.
At that time, the BIICC 2034, maturing in 2034 for 700 million dollars and a coupon of 5.75%. It yielded 5.6% and the demand received was 3.9 times greater than what was awarded, which allowed “the spread to be compressed.”
Previously, in July of that year, it had tendered the now relaunched bond in nominal pesos to 2033, when it placed debt for an equivalent of 1,267 million dollars, with an annual yield to maturity of 9.75%.
Source: Ambito
