Uruguay Sets Japan Meetings

Uruguay plans to hold a group presentation for Japanese investors May 19 and expects to hold individual meetings following it, according to a government official. The sovereign had indicated plans for a Samurai transaction earlier this year, though the official declines to state any specific expectations for a deal. DCM bankers expect a deal in line with other recent LatAm Samurai bonds – in the neighborhood of JPY40bn ($480m), guaranteed by JBIC, 10 year maturity, and paying perhaps yen Libor+ 40bp-50bp. Daiwa and Nomura are managing. Panama was the most recent issuer, with a 10-year Samurai with a 1.81% coupon priced at par to yield yen Libor+48bp in January, while Mexico priced a 2020 bond guaranteed by JBIC in October which priced at par with a 1.51% coupon, to yield yen Libor plus 50bp. Uruguay’s last Japanese bond was a JPY30bn 2.23% 10-year done in 2007. In a separate statement, Uruguay’s finance ministry said it expects to reach a threshold of having 55% foreign-denominated debt this year. This is among the conditions that could see it receive an investment-grade rating this year. Uruguay is rated BB/BB/Ba1.