Banco de la Republica Oriental del Uruguay acted as paying agent, registry agent and representative of bondholders on the transaction that closed on 26 December.

UTE will use the proceeds to finance several energy projects planned for 2013. FERRERE started advising UTE on the transaction in mid-September, with the aim of issuing the bonds before the end of 2012.

UTE issued the bonds in Uruguayan pesos for a term of 30 years and received offers of almost US$ 200 million at an average price of 103.88 per cent.

FERRERE partner Diego Rodríguez says that while the transaction is not the first issuance by UTE, it is certainly the most important. “It is not every company that can issue bonds due in 30 years,” he says. “UTE not only did it, but also obtained a rate comparable to the one that the government obtains in the international market.

Read more...