A government-sponsored fund for Uruguay's bus companies has found a new kind of vehicle. Set up to refinance debt owed by the sector, the Fund for Financing Urban Transport in Montevideo is using a securitization SPV to raise the local currency equivalent of up to $22.5 million in a ten-year bond. Denominated in inflation-indexed units, the yield is capped at 8%.
The trustee is EF Asset Management and the structuring agent is CPA/Ferrere, both affiliates of Ferrere Abogados. Issuance is timed for the first half of October; the deal is currently in the final stages of receiving approval from regulators, according to Diego Rodriguez, a partner at Ferrere. The custodian and payment agent is Discount Bank Latin America, a unit of Israel Discount Bank of New York. Fitch Ratings has given the deal a preliminary rating of A-(uy)' on the national scale.