* Sells new 2045 global bond
* Will use proceeds for buyback
* Seeks to issue more 2045 bonds for debt exchange
By Felipe Llambias and Malena Castaldi
MONTEVIDEO, Nov 13 Uruguay sold $500 million in
a new 2045 global bond at a yield of 4.125 percent, as part of a
debt liability operation that includes a swap for shorter-dated
paper and cash buybacks, the government said on Tuesday.
Uruguay could issue up to $1.5 billion more in the 2045
paper to swap for dollar-denominated bonds maturing from 2013 to
2036. Up to $5 billion in these bonds are eligible for the
exchange, although the government said it will give priority to
debt maturing by 2027.
It will also use the proceeds from Tuesday's debt sale to
finance an up to $500 million cash buyback targeting dollar- and
euro-denominated bonds maturing from 2013 to 2027.
"The benefit in this case is dual: we are extending the
maturities and creating a 30-year benchmark bond, which is a
milestone," Economy and Finance Minister Fernando Lorenzo told
Bondholders' offers to tender their bonds in the debt swap
or for cash will be accepted through Friday. The government will
announce the results of the swap and buyback on Monday.
"We'll only be able to evaluate this operation once its
three parts have concluded, which will happen Friday night,"
A pensions fund executive based in Montevideo said he
believed there would be demand, especially from abroad.
"For the local market the primary debt issue is more
attractive than the swap," he said on condition of anonymity.
Uruguay has been moving away from dollar-denominated debt to
reduce its exposure to currency risk. Local peso bonds now
account for more than half the Treasury's debt, up from 11
percent in 2004.
The country last issued global bonds in December 2011, when
it sold $1 billion worth of 2028 bonds denominated in