Uruguay’s Guyer behind CVU's record-breaking debt programme

Guyer & Regules has structured a trust programme worth US$450 million on behalf of toll road operator Corporacion Vial del Uruguay (CVU), in what is thought to be the country’s largest corporate programme ever created for the local market.

Uruguay’s Guyer behind CVU's record-breaking debt programme The offering was the largest in Uruguayan corporate history , istock.com/jeff_hu

Guyer helped CVU structure a US$450 million notes programme, before steering the two-tranche issuance and placement. The first tranche, worth US$80 million, was issued in indexed units, which is a fiscal unit denominated in Uruguayan pesos and pegged to the country’s consumer price index. The remaining tranche was issued in US dollars. There is no cieling on how large the trust's offerings can be. The programme is thought to be unprecedented in size. “Unfortunately, the Uruguayan market is not that big and we keep a record of the larger deals,” says Nicolás Piaggio, who led the Guyer team behind the offering. “Parties to the deal confirmed that this is the largest corporate programme in Uruguayan history on the local market.” The indexed units tranche obtained a coupon rate of 5.19%, while the dollar-denominated series got a rate of 5.20%. These rates are only slightly higher than those achieved by Uruguay in sovereign issuances. Overall, the offering was three times oversubscribed. Piaggio attributes the healthy interest rates and high demand to the legal framework behind the offering. CVU granted the issuing trust revenue rights and indemnification guarantees from a motorway concession it is building for the government.

In this article

These firms have professional notices in the Latin Lawyer 250

Events

Events

Latin Lawyer 4th Annual Labour & Employment Conference

Events

Latin Lawyer 8th Annual Private Equity Conference

Insight

Reference

Sy83a16n1gvzfafpg07v

Construction 2017

Chile

Alfonso Reymond Larraín and Rodrigo Riquelme Yanez

Reymond & Cía

Brazil

Fernando Marcondes, Ricardo Medina Salla, Marlon Shigueru Ushiro Ieiri, Adriana Regina Sarra de Deus and Juliana Yumi Shiina Morato

LO Baptista

All Reference

Guides

Ogmha8wxmyjxj2opobts

The Guide to Infrastructure and Energy Investment

How to Build Up a Region: Development Banks and Multilateral Financing

Thomas Hechl and Vanessa Pinto Villa

Hogan Lovells LLP

The Role of Project Finance in Developing a Region: Trends and Considerations

Andrés Arnaldos Montaner , Daniel D Bartfeld , Jaime E Ramirez and Roland Estevez

Milbank, Tweed, Hadley & McCloy LLP
All Guides