Uruguay issues public offer bonds in Japan for $ 442 million

Montevideo, Dec 2 (EFE) .- The Uruguayan government completed the issuance of public offering bonds in the Japanese market for $ 442 million with an annual interest rate of 0.71% on average, a fact that was considered as “historical”.

This was indicated on Thursday by the Minister of the Economy and Finance (MEF), Azucena Arbeleche, during a press conference, during which she stressed that the operation was carried out “without the guarantee of no Japanese agency “and” only on credit. Uruguayan”.

“It is important to consider that since the first issue made by Uruguay in this market in 1994 to date, this is the lowest rate we have paid. In addition, this 50 billion yen is the highest amount that we have issued in this market, ”added the portfolio holder.

On the other hand, through a press release issued a few hours after the completion of the operation, the MEF stresses that the durations will be between three and 15 years.

He also points out that the South American country entered the bond market in Japan without the guarantee of the Japanese Bank for International Cooperation (JBIC), “despite the current context of uncertainty and regional and global volatility which has worsened. with the new variant of covid -19 “.

“Uruguay becomes the second Latin American country, along with Mexico, to issue in Japan without JBIC guarantee over the past 20 years, given a very selective investment base in this market in terms of amounts and of financing conditions for emerging countries ”, specifies the MEF.

On the other hand, he indicates that the main objectives of the operation are “to complete the Government’s financing program for the year 2021, by reducing the expected cost of interest on the debt” and “to broaden the investor base. and continue to diversify the markets. and currencies of funding sources ”.

Also, “to promote financial integration and ties with Japan, in the year which marks a century since the establishment of diplomatic relations between the two countries.”

Finally, the document underlines that the bond issue was carried out in five tranches with maturities of three, five, seven, 10 and 15 years and that the volume issued was concentrated on three-year terms (74% of the total ), 15 years (23%) and the rest was distributed in the intermediate terms.

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