Uruguay issues public offering bonds in Japan for 442 million dollars

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

This was indicated this Thursday by the Minister of Economy and Finance (MEF), Azucena Arbeleche, during a press conference, in which she stressed that the operation was carried out “without the guarantee of any Japanese agency” and “only with credit. Uruguayan”.

“It is important to consider that since the first issuance carried out by Uruguay in this market in 1994 to date, this is the lowest rate we have paid. Additionally, these 50 billion yen are the highest amount we have issued in this market”, added the holder of the portfolio.

On the other hand, through a statement issued hours after the operation was carried out, the MEF highlights that the terms will be between three and 15 years.

It also highlights that the South American country accessed 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 that worsened with the new variant of covid -19 “.

“Uruguay becomes the second country in Latin America, along with Mexico, to issue in Japan without JBIC guarantee in the last 20 years, given an investment base in that market that is highly selective in terms of financing amounts and terms for emerging countries” , the MEF points out.

On the other hand, it indicates that the main objectives of the operation are “to complement the Government’s funding program for the year 2021, reducing the expected cost of interest on debt” and “to expand the investor base and continue with the diversification of markets and currencies of financing sources “.

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

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

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