CAF-AM Administradora de Activos de Uruguay S.A.’s $500 Million Notes Offering

Guyer & Regules advised on the deal

CAF-AM Administradora de Activos Uruguay S.A. launched the debt fund financial trust for infrastructure in Uruguay II CAF-AM, called “Debt Fund II CAF-AM” for a total of 4 billion indexed units, equivalent to about US$500 million. As in the first fund, the purpose of Debt Fund II CAF-AM, is to channel funds from investors to finance infrastructure through senior long-term debt instruments.

The fund was launched through Bolsa Electrónica de Valores S.A. (BEVSA) and the Montevideo Stock Market (BVM), issued in two—one wholesale and other retail—tranches. The retail tranche allowed investors to purchase up to US$63,000 for investor and up to 5% of the total issue. Ten bids were submitted for a total of US$183,000. For the wholesale tranche, conceived particularly for pension funds, insurance companies and other institutional investors, total demand was US$530 million.

The funds will be disbursed gradually and as projects reach completion, with an interest rate to be paid on a case-by-case basis. In addition, CAF will co-finance the 10% of the amount of the debt, so the actual amount available to fund infrastructure will be US$550 million, which is divided into US$500 million in the issuance and US$50 million provided by CAF.

The manager of Debt Fund II CAF-AM will be CAF-AM Administradora de Activos – Uruguay, S.A, an Uruguayan company owned by CAF Asset Management Corp., a subsidiary of CAF-development bank of Latin America. Conafin Afisa (Corporación Nacional Financiera Administradora de Fondos de Inversión S.A.), which is the trust owned by the National Development Corporation, will be the trustee, while BEVSA will be the agent. The legal advisor is Guyer & Regules and the tax advisor is CPA FERRERE. The public offering is registered with the Central Bank of Uruguay and will be listed in BVM and BEVSA.

The Debt Fund II CAF-AM will offer loans or will acquire senior debt for infrastructure projects to be implemented by private public partnership (PPP) concessionaires or contractors. The total investment need for the five-year period (2015-2019) is over US$2.14 billion for projects on education, energy, railway, hospitals, ports, roads and housing.

Guyer & Regules advised CAF-AM Administradora de Activos de Uruguay S.A. witjh Nicolás Piaggio, Marcos A. Payssé and Carolina Herrera.

Involved fees earner: Carolina Herrera – Guyer & Regules; Marcos Payssé – Guyer & Regules; Nicolás Piaggio – Guyer & Regules;

Law Firms: Guyer & Regules;

Clients: CAF-AM Administradora de Activos Uruguay S.A.;


Author: Ambrogio Visconti.