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Uruguay issues $2 billion of new 2050 bond

Staff writer ▼ | June 12, 2014
Uruguay issued 2 billion dollars of a new 2050 global bond at a spread of 165 to 170 basis points over U.S. Treasuries as part of the government's bid to put less strain on its accounts in the near- and medium-term.
Uruguay money
Uruguay moneyUruguay issued 2 billion dollars of a new 2050 global bond at a spread of 165 to 170 basis points over U.S. Treasuries as part of the government's bid to put less strain on its accounts in the near- and medium-term.


Uruguay said it would use some of the proceeds to purchase outstanding bonds due to expire in 2015, 2017, 2022, 2025, 2033, 2036 and 2045. The buyback is meant to help spread out Uruguay's debt payment schedule. The planned securities due 2050 will be the nation’s longest-dated bonds.

In May, Uruguay was upgraded to Baa2, the second-lowest investment grade rating, by Moody’s Investors Service, which cited Uruguay’s transition toward more stable annual growth levels and less vulnerability to regional shocks.

Moody's said that with an average debt maturity of 11.9 years as of March 2014, Uruguay is part of a shrinking group of sovereigns with debt maturities in excess of 10 years.


 

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