UPDATE 1-Uruguay issues $2 billion of 2050 bond

Tue Jun 10, 2014 5:39pm EDT

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(Adds issuance volume; updates spread)

MONTEVIDEO, June 10 (Reuters) - Uruguay issued $2 billion of a new 2050 global bond on Tuesday at a spread of 165 to 170 basis points over U.S. Treasuries as part of the government's bid to put less strain on its accounts in the near- and medium-term, Thomson Reuters unit IFR reported.

The South American country announced the deal in an official decree earlier on Tuesday, saying it would use some of the proceeds to purchase outstanding bonds due to expire in 2015, 2017, 2022, 2025, 2033, 2036 and 2045.

The buyback is meant to help spread out Uruguay's debt payment schedule. Last August, it sold $2 billion in a new 2024 global bond as part of an operation that included a $982.5 million debt swap.

The sale is being managed by HSBC and JP Morgan and the pricing will be announced later on Tuesday.

The tender period started at 1200 GMT and ended at 2000 GMT, the country said. (Reporting by Alejandro Lifschitz; Writing by Sarah Marsh. Editing by Andre Grenon)

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