MercoPress. South Atlantic News Agency
Uruguay floats 2bn dollars in bonds to help spread debt payment
Debt manager Azucena Arbeleche said the sale was managed by HSBC and Deutsche Bank Uruguay priced 2 billion dollars in 10-year benchmark sovereign bond on Tuesday at a spread of 187.5 basis points over US Treasuries as part of the government's bid to improve its debt profile, according to reports from Thomson Reuter’s unit IFR. The bond priced at 99.833 with a 4.5% coupon and 4.521% yield, according to IFR.
The deal attracted 3.5 billion dollars in offers for the cash tranche and 1 billion dollars for the swap portion of the deal, IFR said.
Uruguay announced the deal in an official decree early on Tuesday that said half the proceeds will be used to purchase outstanding government bonds. The buyback is meant to help spread out Uruguay's debt payment schedule to put less strain on the government's fiscal accounts.
The Ministry of Economy debt director Azucena Arbeleche said the sale was managed by HSBC and Deutsche Bank and results of the transaction will be announced on Wednesday.
Prior to this deal, Uruguay's outstanding bonds include 166.8 million in 2015 debt paying interest of 7.15%; 96 million of 2017 bonds paying 9.25%; 1.23 billion in 2022 bonds paying 8% and 391.9 million in 2025 bonds paying 6.875%.
In November of last year, Mercosur member Uruguay sold $500 million in 2045 global bonds at a yield of 4.125%, as part of a debt liability operation that included a swap for shorter-dated paper and cash buybacks.
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Read all commentsThe real way the strain on the government accounts should be tackled is to fire 50% of the government employees AT ALL LEVELS and re-educate them in modern business practices so that they become attractive to the private sector, as long as they get a work ethic and not a do anything but work ethic at the end of the training.
Aug 07th, 2013 - 02:06 pm 0But I know that is wishful thinking for a government that puts “social inclusion” before any other parameter that it wants to be measured by.
All this debt is just storing trouble up for future generations and it is no wonder Vaquez is fixated by the ‘escalating debt that this “socialist” bunch of misfits has left for him.
It never ceases to amaze me how so many people are so uneducated in the economics of the real world and want the Cuban or The Dark Country “model” for themselves.
Lemmings springs to mind.
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