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Corporación Vial del Uruguay awarded US$101M to finance road works

Corporación Vial del Uruguay awarded US1M to finance road works
Corporación Vial del Uruguay awarded US1M to finance road works

Uruguayan Road Corporation (CVU) placed close to 101 million dollars in its second reopening of securities debt issued in December last year, which was successful, as the greed of investors led to the demand double the offer.

Within the framework of the financing plan plays included in the Road Plan 2020-2024, CVU has accumulated a total of 503 million dollars since the launch of the first instrument, in December of last year.

The funds obtained from the placement, subscribed through the screens of the Uruguayan Electronic Stock Exchange (Bevsa), will be used for the Ministry of Transportation and Public Works (MTOP) move forward with your program this year.

The degree in UI, the most in demand

The Series in Indexed Units (UI) was the most in demand, for a total of 130 million dollars, almost three times the 50 million offered. Finally, the issuer made an award of 59 million at an effective rate in UI of 3.80%.

On the other hand, as for the series in Dollars and in Forecast Units (UP), which were put out to tender jointly, the market demand reached 78 million dollars, 56% of the amount offered. In this case, CVU assigned offers for an approximate amount of 50 million, at an effective rate in UP of 2.25% and an effective rate in dollars of 6.02%.

CVU praised the “outstanding results and the very good response from local investors”, echoing “the support and confidence” in the firm’s instruments.

Meanwhile, Bevsa’s Operations and Markets Manager, Augustin Gattas, noted that “the trust continues to prove to be a great tool to channel funds to projects that are a key contribution to boosting the stock market and the economy and, in particular, road works, which contribute so much to the development of the country’s infrastructure.”

The second reopening of debt securities

This is the second reopening of titles CVU, after placing 236 million dollars in April, of which 93% corresponded to the exchange of securities, accumulating a total of 503 million to date.

From the company, whose shareholding is 100% owned by the National Development Corporation (CND), stated that the terms and conditions allow for the possibility of payments by investors to be made through the exchange of debt securities previously issued by CVU.

This gives investors the opportunity to obtain longer-term investments at a better rate and pay with assets that already belonged to their investment portfolio.

Source: Ambito

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