Uruguay issues two new global bonds for US$1.166 billion and US$574 million

RIO DE JANEIRO, BRAZIL – This Thursday, May 13, Uruguay issued a new global bond in Uruguayan pesos for the equivalent of US$1.166 billion and reopened a bond in dollars for US$574 million, both with a 10-year maturity.

This was announced by the country’s Minister of Economy and Finance, Azucena Arbeleche, who described the debt issuance as “successful” and stressed that it demonstrated investors’ confidence in the Uruguayan economy.

Regarding the bond in local currency, which she considered the “star instrument”, Arbeleche detailed that it is an issue for the equivalent in nominal pesos of US$1.166 billion with an interest rate of 8.25% per annum, which, she added, is the lowest in the historical comparison of Uruguay’s issues.

The minister highlighted the work of the Central Bank of Uruguay (BCU) in reducing inflation and remarked that the higher amount of the peso bond compared to the dollar bond was because the focus of the transaction was on that issue, which is also the third in nominal pesos issued by the country.

“It is important to consider that our country is the first country this year to issue in its own currency, to issue debt in the international capital markets in its own currency. This tells us about the confidence there is in the world in the Uruguayan currency”, he emphasized.

Regarding the bond placed in dollars, also maturing in 2031, the Minister of Economic and Finance said that the distinctive element is in the rate differential that the investor is asking for compared to the United States, the so-called “spread”, which stood at 80 percentage points.