On December 26, 2012 UTE issued bonds for a total amount of the equivalent to USD 100 million for a term of 30 years with payment of principal in the last three years. The bonds were issued in Uruguayan Pesos adjusted by inflation and rated by Fitch Ratings with AAA (uy), the best available local rating.
The issuance was highly successful, with UTE receiving offers for almost USD 200 million and with a very competitive price. The average price paid was 103.88%.
The FERRERE team that worked on the issuance was led by Partner Diego Rodríguez, who says: “This is not the first issuance made by UTE but it is certainly the most important up to date. This is not only because of the significant amount for the local capital market but also because of its tenor. It is not every company that can issue bonds due in 30 years. UTE not only made it but also obtained a rate comparable to the one that the Government obtains in the international market.”
Banco de la Republica Oriental del Uruguay acted as paying agent, registry agent and representative of bondholders.