On February 7 and 8, subscriptions were placed for securities issued by the Financial Trust of the Financing Fund for Renewal of Montevideo Urban Transport I, in the amount of UI (Indexed Units) 248,000,000 (approximately USD 37 MM), on Uruguay’s electronic securities exchange, Bolsa Electrónica de Valores.

The subscription took place in two tranches, wholesale and retail. An amount of UI 223.2 MM was allocated to the wholesale tranche, and the remaining UI 24.8 MM was for the retail market. The securities are debt instruments rated investment grade AAuy by the risk rater CARE Calificadora de Riesgo S.R.L., and will pay monthly instalments of principal and interest. The annual linear rate on the coupon is 4.5% in Indexed Units.

Total demand for the issue reached UI 463 MM, almost double the amount offered, with an average price above par of 106.03. The financing instrument was very well received by the market in general, with participation in the two tranches of the subscription.

In the wholesale tranche, total demand was UI 461.3 MM. Investors will receive an average annual yield of 3.58% as holders of the debt instruments.

The demand in the wholesale tranche, the majority awarded to institutional investors, confirms their avidness for such UI-denominated products with attractive maturities and interest rates. In turn, in the retail tranche, offers were received for a total of UI 1.4 MM.

The aggregate demand of UI 463 million and the average price made it possible to significantly reduce the financing cost for the transport system’s companies, which turned out to be barely 50 basis points above sovereign debt securities with comparable maturities.

The funds collected through the Trust will be transferred to the four public transportation companies providing services in Montevideo -CUTCSA, COETC, UCOT and COME- for the purpose of incorporating new units (electric busses) and technological systems to improve their quality and efficiency.

The objective of this Financing Fund for Technological Renewal of Montevideo Urban Public Transport I (Fondo de Financiamiento para la Renovación Tecnológica del Transporte Colectivo Urbano de Montevideo I) is to incorporate 100% electric busses, along with infrastructure and technology to improve service and to pay off debts assumed to address these goals. The fund was created in a decree by the Montevideo Departmental Council, and is financed with a contribution of 1.7% of the companies’ total gross revenues, including the subsidies paid by the Municipality of Montevideo. These contributions will be assigned to the Trust to repay the debt instruments. The instruments’ guarantee is a percentage of the amounts the companies collect in fares paid using the STM card, administered by the Municipality of Montevideo.

The Municipality of Montevideo acted as trustor in its capacity as administrator of the Financing Fund for Technological Renewal of Montevideo Urban Public Transport, with EF Asset Management AFISA, the FERRERE fiduciary, as trustee.

Financial structuring of the issue was handled by CPA FERRERE, led by Alfonso Capurro and Federico Campagna.

Legal structuring of the issue was handled by FERRERE Abogados, led by Diego Rodriguez and Federico Lemos.