UTE and SURA launches issue of shares for Valentines Wind Farm
For the third time, UTE ventures into the stock market to seek financing for a renewable energy project. In this particular case, it is the Valentines Wind Park on the border between Florida and Treinta y Tres, which is already in operation, with SURA Asset Management Uruguay as sole mass retail distributor.
The issuance will be launched at the Montevideo stock exchange Bolsa de Valores de Montevideo ( BVM ) and the electronic stock exchange Bolsa Electrónica de Valores ( BEVSA ) through Areaflin S.A ., a partially state-owned company established by UTE to conduct the Valentines Wind Farm project with a 70 MW output, a conversion rate (wind power harnessing capacity) above the average in similar local wind farm projects, and an estimated 10 per cent basic return on investment in US dollars of 10, as informed by the issuing entity.
Shares will be issued for 80 per cent of the wind farm with UTE keeping a 20 per cent stake in the company. Approximately one half of these shares, worth USD 44 million, will go to the retail sector (individual investors and small savers), while the other half will go to the wholesale segment of the market –institutional investors, private Pension Fund Managers ( AFAP s), and insurance companies.
Corredor de Bolsa SURA will offer those interested the opportunity to purchase shares for USD 2,000 and above by calling 0800 7872.
SURA will also make available to those interested pertaining to the mass retail segment the possibility to buy USD 100 to USD 2,000 shares through the decentralized payment network Redpagos .
The issuance will be made for a fixed price per share, giving first priority to requests for low-value shares, so as to benefit retail segment savers. Investors participating through the retail channel will not be charged any commission for the shares they purchase.
Starting from today, those wishing to buy shares may visitwww.sura.com.uy, enter their details in advance, and then go to any Redpagos terminal with the amount of money for the shares they wish to acquire, or otherwise go directly to any of the 400 decentralized payment network offices with their identity card and a photocopy of it, in order to purchase the shares from December 14th on. While the issuance will be made on December 21st through BEVSA and BVM , investors may submit their purchase orders from today until December 20th.
UTE Chairman Gonzalo Casaravilla remarked that, while the State electricity company has participated directly in 34 per cent of the wind farm projects in the country, the Valentines wind farm case is unique in that the retail segment has access to it.
"No wonder SURA 's people are with us again, this time as one of Bolsa de Valores operators. It is they who are actually bringing innovation to the business, as with just USD 100 anyone can go to a Redpagos office and become UTE 's partner in a wind farm project. Of course this is not enough; we always aim to set ourselves more ambitious targets. We have not reached the point where you are standing in the line at the supermarket and someone asks you if you want to leave the change and partner with UTE in a wind farm project, but I think we have reached a happy medium," Casaravilla stated.
For his part, SURA Asset Management Uruguay CEO Gonzalo Falcone highlighted the fact that, with this instrument, anyone can become UTE 's partner in one of the most thriving and potentially profitable areas – renewable energies. "Unlike debt securities, in this case you acquire a share in the ownership of the company whose main assets are the Valentines Wind Farm, in which UTE has a 20 per cent stake and purchases all the power generated," he explained.
The launch further included a portion of the issue which can be acquired through Corredor de Bolsa SURA . However, this issue is innovative in that the existence of a mass retail portion allows any saver to acquire shares worth USD 100 and above easily through SURA and Redpagos .
SURA Asset Management Uruguay's participation in this issue is in line with its policy to support the development of the capital market and seek ways to make financial instruments available to more people, as was the case when it launched the basic savings fund Fondo de Ahorro Básico ( FAB ). The company has wide experience in retail distribution of financial products in the home market, as evidenced by FAB , as well as at the regional level with the development of solutions for other issues with similar characteristics.
About SURA Asset Management
SURA Asset Management is a Latin American company working in the area of Pensions, Savings, and Investment in Mexico, Peru, Chile, Colombia, Uruguay, and El Salvador. It is a subsidiary of the SURA Group, and has also four shareholders with a minority interest in the company: the Bolívar Group, the International Financial Corporation (IFC), World Bank member Bancolombia , and the Wiese Group. As of June 2016, SURA Asset Management has a total of USD 115 billion in assets under management, pertaining to 18.6 million clients.
* Clients and AUM include Pension Fund Associations (AFP) Protección in Colombia and Crecer in El Salvador. Though these entities are not under SURA's control, SURA has a major share in them.
SURA Asset Managment Uruguay manages different lines of business, among which the following stand out: AFAP SURA , the second largest retirement fund administration company by number of members and assets under management in Uruguay; AFISA SURA , an Investment Fund administration company with open, public offer funds authorized by the Central Bank of Uruguay; and Corredor de Bolsa SURA , a stock brokerage firm that offers tailor-made investment solutions for specific financial needs and objectives, providing access to a wide range of investment instruments.