The National Administration of State Power Plants and Transmissions (UTE) has issued debt for 27 million dollars in Negotiable Obligations (ON) aimed at retail investors, with the aim of financing one of the two new solar photovoltaic parks projected to increase Uruguay’s renewable energy matrix.
Debt Issuance Details
The Central Bank of Uruguay (BCU) approved the operation to obtain financing for the construction of a new solar park in Punta del Tigre, San José, whose tender was awarded in early October.
The issuance will consist of 27 million dollars in ON for five years, with an attractive fixed rate. Investors will be able to participate with a minimum of 1,000 dollars and will have the option to sell the papers to UTE on each anniversary of the issuance.
The bond maturity date will be on December 17, 2029, with interest at a fixed rate of 5.125% annually during the first three years, 5.25% in the fourth year, and 5.375% in the fifth year. Interest payments will be semi-annual.
Financing Plan and Future Projects
The debt issuance is part of a financing plan similar to the construction of three wind farms in the past decade, with broad retail savings participation. UTE is also preparing to issue a sustainable bond in international markets, within the IDB Climate initiative of the Inter-American Development Bank (IDB), managing a $100 million loan subject to the fulfillment of environmental and governance goals.
UTE would receive $1.5 million in non-reimbursable technical assistance to prepare the global issuance of the sustainable bond, which would be the first subsovereign bond of a Uruguayan public company and could be finalized in 2025.
Adjudication of the New Solar Park
The tender for the construction of a new solar park in Punta del Tigre, with a capacity of 25 megawatts, was awarded to a consortium composed of Prodiel Energy from Spain and Teyma from Uruguay. The project must be approved by the Court of Accounts of the Republic (TCR) before the contract is signed.
The deadline for the completion of the works is 548 calendar days (one and a half years) from the start of the works. The facilities must be designed to maximize the annual energy production and consider a lifespan of 30 years.
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