Issue. Subscription took place today on the Montevideo securities exchange (BVM) for instruments to be issued by the financial trust Fideicomiso Financiero Platinum for USD 165 million. The subscription stage demonstrated the interest in the project, with investor demand for a total of USD 243.5 million outstripping the offer by 63%.
Structuring. The issue’s legal structuring was provided by FERRERE Abogados, steered by Diego Rodriguez and Federico Lemos who, together with the CPA Ferrere team headed up by Alfonso Capurro and EF Asset Management (EFAM) led by Nelson Mendiburu and Alfredo Poggi, advised the company formed by Campiglia Construcciones and Ernesto Kimelman as project sponsors and promoters.
The trust was structured based on hybrid instruments combining debt and equity features. This financial structure was conceived to offer investors a fixed income component with a profitability floor on the one hand, and on the other hand a variable component allowing investors to capture additional profitability based on the venture’s commercial success. Specifically, the credit rights will accrue interest at a base rate of 3% annually on balances, plus contingent interest at an incremental rate, which will start being paid in year 4. The estimated yield on the instruments is 8.35 % annually in USD at a 30-year term.
The structuring involved a painstaking process geared to contemplating and aligning the interests of investors and project promoters. This achieved a major step forward, made jointly with the regulator, regarding acquisition of vehicles by financial trusts in which pension funds can invest.
The issue’s financial structuring was done by CPA Ferrere, piloted by Alfonso Capurro and Federico Campagna, and its trustee will be EF Asset Management (EFAM), which with this deal has reached total issues in the financial trusts public offering market of over USD 1.3 billion, positioning us by far as the country’ chief private financial trustee.
Project: Platinum Complex. The funds obtained from the issue will be used in construction of a real estate project for housing, offices and commercial space in Montevideo’s Buceo neighborhood. The project’s location, the zone’s features and growth, and the development’s multimodal use position the Platinum complex as an attractive asset for investors with a long-term horizon.