Uruguay's UTE to issue US$235mn in bonds

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Wednesday, November 26, 2014

Uruguayan state power utility UTE will issue three bonds in the next three months to raise US$235mn, according to a government release.

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The proceeds will be used to finance several energy projects, as well as settling a historical debt that regional governments hold with UTE for public lighting.

Uruguay's 160MW Pampa wind farm, the largest wind project in the country, will receive an US$80mn capital injection in an offering scheduled to take place in mid-December.

Unlike the last debt issuance, this placement will be denominated in US re-adjustable dollars and will be available for smaller investors.

"It is not a simple debt issuance; these are participation certificates, equivalent to a public limited company," UTE president Gonzalo Casaravilla, said.

UTE received the go-ahead from Uruguay's central bank to issue another US$100mn offering in 60 days in order to finance upcoming energy projects such as the Arias (70MW) and Valentines (70MW) wind parks.

The last of the three announced bonds will go toward the trust Fideicomiso de Alumbrado Público, which will receive US$55mn to pay the debt owed by regional governments to UTE.