Uruguay in $2 Billion New Money Offering and Switch Tender Offer

July 2, 2020

Cleary Gottlieb represented the Republic of Uruguay (Uruguay) in an offering of $400 million 4.375% notes due 2031 and Ps. 68.51 million 3.875% inflation-indexed notes due 2040.

The issuance of the 2031 notes constituted a further issue of Uruguay’s $1.47 million outstanding 4.375% notes due 2031, initially issued on January 23, 2020, and first re-tapped on October 2, 2019. The notes offered were priced on June 24, 2020, and the transaction closed on July 2, 2020.

The offering of the notes was made concurrent with an offer to purchase for cash certain series of outstanding inflation-indexed notes of Uruguay, which was executed on June 24, 2020.

Citigroup Global Markets Inc., HSBC Securities (USA) Inc., and Itau BBA USA Securities Inc. acted as underwriters for the notes offering and joint dealer managers for the offer to purchase.

Uruguay used a portion of the net proceeds of the sale of the notes to pay the purchase price of outstanding notes accepted in the offer to purchase. The balance of the proceeds will be applied to partially finance the implementation of measures designed to support economic activity; employment and protect vulnerable sectors, including the COVID-19-related government response deployed through Uruguay’s broad social safety net; and to other general purposes of the government, including financial investment and the refinancing, repurchase, or retiring of domestic and external indebtedness.