UTE placed less debt than authorized and did not arouse interest in small savers

The entity was authorized to place debt for up to 800 million UI —about US$108.5 million— but the issuer chose not to make use of that option based on the return requested by the market.

In the retail tranche, UTE did not get a great response from small investors, as it had in the structuring of other issues such as those it did for its wind farms (Pampa, Valentines and Colonia Arias). Retail investors could participate with a minimum amount of 10,000 IU (about $54,000) and a maximum of 500,000 IU (about $2.7 million). This segment had a total demand of about 4.7 million IU (about US$650,000), barely 12% of the amount tendered for this section. The amount earmarked for investment was 40 million IU (5% of the total), about US$5.5 million.

While, the wholesale tranche for institutional investors received a demand for 1,418.6 million IU (about US$ 193.3 million). In this way, the final placement had a demand of 1,423 million IU (about US$ 194 million), which almost doubled the amount available.

A price was established for the entire issue of 96.42, and an internal rate of return for the investor of 3.47% in UI.

The financial trust will be until 2048 and will amortize capital from 2025 with semi-annual interest payments from the start of the issue. UTE will be in charge of the operation and maintenance of the assets and will have a purchase option at year 20 of the operation of the substations, and another similar option at the end of the trust for the transmission line assets.

The placement, carried out through the Electronic Stock Exchange, was carried out through the Siopel electronic trading system.

The debt securities were rated AAA (uy) by Moody’s Local. In charge of its structuring was República Afisa, which will act as trustee.