MercoPress. South Atlantic News Agency

Uruguay filed to issue up to 2 billion dollars in new 2028 global bonds

The Central bank wants to improve the external debt profile

Uruguay announced on Monday filed to issue up to two billion dollars in new global bonds maturing in 2028 and to conduct a series of liability management transactions designed to further improve its external debt profile, including an exchange offer and a cash tender offer for certain of its outstanding debt securities.

The issuance of new bonds for cash is expected to comprise an offering of UI Global Bonds due 2028, which will be used by Uruguay in part to fund the cash tender offer.

In addition, Uruguay intends to invite holders of its 5.00% UI Global Bonds due 2018, subject to certain conditions, to tender such bonds in exchange for additional UI 2028 Global Bonds, which, if issued, will be consolidated, form a single series, and be fully fungible with Uruguay's UI 2028 Global Bonds to be offered for cash.

The aggregate outstanding principal amount of the UI 2018 Global Bonds is equivalent to approximately US1.23 billion dollars. Subject to pro-ration, holders that validly tender UI 2018 Global Bonds are expected to receive, in exchange for each 100 Pesos in original principal amount of UI 2018 Global Bonds accepted for exchange, UI 2028 Global Bonds having a nominal principal amount equal to 110.25 Pesos, as adjusted for inflation and accrued interest.

The aggregate principal amount of the UI 2028 Global Bonds intended to be issued by Uruguay (including UI 2028 Global Bonds offered for cash) will not exceed the equivalent of 2.0 billion dollars. Uruguay expects the Exchange Offer will be subject to the consummation of the issuance of the UI 2028 Global Bonds offered for cash.

The result of the issue is expected next Friday and with the cash collected the Uruguayan government will purchase bonds nominated in US dollars and Euros for the equivalent of a billion dollars. The first bonds mature between 2013 and 2017 and the second, 2012 to 2019.