UTE Raises $179 Million Through Negotiable Obligations to Support $1.7 Billion Investment Plan

UTE executed a debt issuance program divided into two series: Series A in UI with a 19-year maturity and a fixed annual interest rate of 3.20%, and Series B in UP with a 25-year maturity at a 2% fixed annual interest rate. The total ceiling for the issuance amounted to 1.11 billion UI, equivalent to approximately US$179 million. Actual allocations included 360 million UI (about US$58 million) and 2.737 billion UP (about US$121 million). Demand for Series A reached 1.388 billion UI (approximately US$223 million), 85% above availability, while Series B demand hit 3.033 billion UP (around US$134 million), 11% above supply. Prices settled near par with Series A adjudicated at 100.7 and Series B at 100.34. Both series received a AAA (uy) local credit rating from Fix Scr Uruguay.

Proceeds from the issuance are earmarked for debt management optimization and financing portions of UTE’s five-year US$1.7 billion investment plan. For 2026, the company targets US$325 million in investments focused on infrastructure expansion, refurbishment, and securing long-term power supply reliability. The debt strategy aims to increase local currency exposure, achieve fixed-rate borrowing, and extend maturities in line with asset lifespans, balancing amortization schedules with projected revenue streams.

Market reception reflects strong institutional investor backing, underpinning UTE’s ongoing sustainability and development priorities. The issuance structure, offering options in distinct indexed units, demonstrates innovation in Uruguay’s local capital markets by accommodating diverse investor preferences while supporting issuer objectives. This transaction strengthens UTE’s financial profile, supporting vital infrastructure projects amid rising energy demand and the sector’s evolution.