#Bond Offer #Uruguay #Montevideo #Republic of Uruguay #Global Tender

Uruguay Concludes Global Tender Offer

On July 29, 2026, the Republic of Uruguay announced the results of its recent Global Tender Offer, a strategic initiative aimed at buying back its bonds. This offer was specifically directed at three series of bonds: the 2028 Ps. Bonds, the 2027 USD Bonds, and the 2028 UI Bonds, collectively referred to as the Old Global Bonds.

Tender Offer Details

Launched on July 28, 2026, the Global Tender Offer was designed to enhance Uruguay's debt management strategy by allowing bondholders to sell their securities back to the government for cash. The offer encompassed specific terms and conditions detailed in the Offer to Purchase.

The offer expired at two different times: 12:00 noon for non-preferred tenders and 2:00 p.m. for preferred tenders, creating a structured timeline for participants. The total maximum amounts designated for each bond series included:
2028 Ps. Bonds: US$22,631,696
2027 USD Bonds: US$49,675,066
* 2028 UI Bonds: US$381,817,935

Acceptance of Tenders

The results revealed a positive response to the tender offer, with all valid preferred tenders submitted for the 2027 USD Bonds being accepted unconditionally. Conversely, the responses for the 2028 Ps. Bonds and 2028 UI Bonds exceeded the maximum purchase capacity, prompting the necessity for a proration calculation among those tendered.

In detail, the preferred tenders accepted included:

• - 2028 Ps. Bonds: Ps. 878,897,000 accepted against Ps. 1,757,795,000 total preferred tenders, reflecting a proration of 50%.
• - 2027 USD Bonds: All US$74,289,730 of preferred tenders were accepted, with 100% allocation.
• - 2028 UI Bonds: Ps. 5,172,200,460 of the total preferred tenders of Ps. 5,945,058,000 were accepted, resulting in an allocation of 87%.

No non-preferred tenders were accepted in this round, reflecting a decisive preference for preferred submissions and a potentially effective restructuring strategy pursued by the government.

Purchase Prices and Settlement

Uruguay detailed the fixed purchase price for each bond as follows:

• - The 2028 Ps. Bonds were priced at Ps. 1,035.00 per principal amount.
• - For the 2027 USD Bonds, the price stood at US$1,003.00.
• - The 2028 UI Bonds were priced at Ps. 1,034.50.

Investors participating in the tender offer can expect an additional return in the form of accrued interest, further incentivizing participation in the Global Tender Offer. The settlement date set for these transactions is projected for August 3, 2026, giving both holders and the government a timeline to complete the exchanges smoothly and efficiently.

Future Outlook

The Global Tender Offer is part of Uruguay's broader initiative to optimize its debt structure, reducing liabilities while providing liquidity options for bondholders. Furthermore, it links to the new bond offerings, which will assist in financing the amounts necessary for repurchasing these Old Global Bonds, ensuring that the strategies align with financial sustainability.

As financial markets continue to evolve and response mechanisms become more agile, the outcomes of such tender offers can provide insightful data for investors and policymakers alike, highlighting the importance of proactive debt management by national governments.

This tender offer, managed by Itau BBA USA Securities, Inc., alongside Citigroup Global Markets and Goldman Sachs, illustrates a collaborative effort in navigating such significant financial transactions. Stakeholders interested can refer to the detailed information provided in the Offer to Purchase for more insights.

In addition to the Global Tender Offer, Uruguay has also initiated a local tender offer for certain Treasury Notes, scheduled to conclude shortly after the global initiative, indicating a concerted effort to manage public debt comprehensively.

In summary, while the Global Tender Offer reflects a strategic bond buyback, it also sets a precedent for future offers, signaling Uruguay's commitment to enhancing its economic profile and maintaining favorable conditions for both domestic and international investors.