UPDATE 2-Uruguay global bond deal fetches less than expected

Mon Nov 19, 2012 2:37pm EST

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* Government last sold global bonds 11 months ago

* Rate of 4.125 percent a record low

MONTEVIDEO Nov 19 (Reuters) - Uruguay sold $853 million in new long-term global bonds due 2045, a much lower amount than it had expected, with the government saying that the historically low yield may have discouraged buyers.

The government said last week it intended to issue up to $2 billion in the debt restructuring, and its minimum aggregate expectation for the deal was $1 billion. The yield on the deal was a record low 4.125 percent.

"Perhaps, considering the rates at which Uruguay can now access the market, some investors thought they could a better rate elsewhere," Economy Minister Fernando Lorenzo told reporters on Monday.

In the deal, $500 million was a buy-back and the rest a debt swap, the government said. The $353 million raised through the swap was far less than the maximum $1.5 billion the government had hoped for.

"In this deal we got the lowest interest rate that Uruguay has ever had for an issue in foreign currency," Lorenzo said.

The country last issued global bonds in December 2011, when it sold $1 billion worth of 2028 bonds denominated in inflation-indexed units.

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