Uruguay Announces Results of its International Offer

27/06/2008 22:24

PR Newswire

MONTEVIDEO, Uruguay, June 27 /PRNewswire/ -- The Republic of Uruguay, in accordance with the schedule of its offer launched on June 24, 2008 to holders outside the United States (the "International Offer") of 14 series of outstanding foreign currency external bonds of Uruguay (the "Eligible Bonds") to exchange those bonds for either Uruguayan Pesos UI Bonds due 2030 (the "2030 UI Bonds") or U.S. Dollar 7.625% Bonds due 2036 (the "2036 Global Bonds" and together with the 2030 UI Bonds, the "New Bonds") to be issued by the Republic of Uruguay upon settlement of the transaction, announced today the following:

A. U.S.$/EUR spot exchange rate today at 11:00 a.m. NYC time:

U.S.$1.575 per EUR 1

B. All series of Eligible Bonds were accepted in the International Offer and concurrent exchange offers.

C. For each series of Eligible Bonds, the reference rate and purchase price as of today at 11:00 a.m. NYC time, and the preliminary aggregate principal amount accepted in the International Offer and concurrent exchange offer in the United States (the "Preliminary Amount Accepted"), as set forth in the table below:

Purchase
Reference Price Preliminary
Eligible Amount
Bonds Rate (%) (per 1,000) Accepted
EUR Bonds
7.000% Bonds 5.129 EUR 1,039.20 EUR 332,000
due 2011
7.000% Bonds 5.171 EUR 1,030.74 EUR 3,239,620
due 2012
USD Bonds
7.875% Bonds 2.944 USD 1,016.33 USD 137,500
due 2008
7.875% Bonds 3.306 USD 1,029.29 USD 60,000
due 2009
7.250% Bonds 3.349 USD 1,028.23 0
due 2009
8.750% Bonds 3.538 USD 1,090.42 0
due 2010
7.250% Bonds 3.770 USD 1,075.02 USD 11,559,711
due 2011
8.375% Bonds 3.962 USD 1,118.29 USD 1,565,800
due 2011
7.625% Bonds 4.035 USD 1,101.39 USD 150,000
due 2012
7.000% Bonds 4.252 USD 1,085.24 USD 464,854
due 2013
7.875% Bonds 4.374 USD 1,134.55 USD 1,198,886
due 2014
7.250% Bonds 4.387 USD 1,104.98 USD 726,618
due 2014
7.500% Bonds 4.473 USD 1,126.92 USD 100,523,907
due 2015
8.750% Bonds 4.499 USD 1,201.64 USD 3,397,868
due 2015

D. For the 2036 Global Bonds:

Reopening benchmark rate: 5.018%

Reopening Price: U.S.$1,029.65 per U.S.$1,000

Preliminary aggregate amount to be issued in the International Offer and concurrent exchange offers: U.S.$123,975,000

E. For the 2030 UI Bonds:

Preliminary aggregate amount to be issued in the International Offer and the concurrent offer in Uruguay: Ps.14,333,748,358

F. The preliminary aggregate principal amount tendered for cash by "cash eligible holders" in the International Offer and concurrent offers was U.S.$ 10,359,830 of U.S.$ denominated Eligible Bonds and EUR 546,100 of EUR denominated Eligible Bonds.

Information regarding the International Offer is described in an Offering Circular dated June 24, 2008.

The International Offer expired on June 26, 2008, at 5.00 p.m., New York time. Settlement is currently expected to take place on July 10, 2008.

Citigroup Global Markets Ltd. acts as Dealer Manager for the International Exchange Offer, Citibank N.A. as Exchange Agent and Global Bondholder Services as Information Agent.

This press release is for information purposes only and does not constitute or form part of, and should not be construed as an offer or an invitation to sell, or issue or the solicitation of any offer to buy or subscribe for, any securities. This press release does not constitute a "prospectus" for the purpose of Article 5.4 of the Prospectus Directive 2003/71/EC and has not been approved by the competent authority of any member state of the European Economic Area. In connection with this transaction there has not been, nor will there be, any public offering of the New Bonds. No prospectus will be prepared in connection with the offering of the New Bonds. The New Bonds may not be offered to the public in any jurisdiction in circumstances that would require the issuer of the New Bonds to prepare or register any prospectus or offering document relating to the Bonds in such jurisdiction. The distribution of this press release and the offer and sale of the New Bonds in certain jurisdictions may be restricted by law. Italy has only partially implemented the Prospectus Directive and, accordingly, the provisions of the Prospectus Directive shall apply with respect to Italy only to the extent to which the relevant provisions of the Prospectus Directive have already been implemented in Italy. The New Bonds may not be placed, sold or offered to individuals resident in Italy in the primary or in the secondary market. Any persons reading this press release should inform themselves of and observe any such restrictions.

This press release does not constitute an offer to sell or a solicitation of an offer to purchase any securities in the United States. The 2030 UI Bonds have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or the laws of any state within the U.S., and may not be offered or sold in the United States or to or for the account or benefit of U.S. persons, except in a transaction not subject to, or pursuant to an applicable exemption from, the registration requirements of the Securities Act or any state securities laws. This press release and the information contained herein may not be distributed or sent into the United States, or in any other jurisdiction in which offers or sales of the securities described herein would be prohibited by applicable laws and should not be distributed to United States persons or publications with a general circulation in the United States. No offering of the 2030 UI Bonds is being made in the United States.

Until 40 days after the settlement date, all dealers effecting transactions in the 2036 Global Bonds in the United States may be required to deliver a copy of a prospectus relating to the 2036 Global Bonds.

Azucena Arbeleche, +2-1712-2957






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