Uruguay has slipped back into global markets with a clean, two-stage bond sale that raised about $1.85 billion equivalent—its first dollar issue since President Yamandú Orsi took office in March and the country’s third international deal this year.

The message to investors was simple: borrow a bit more, pay a bit less, and keep moving risk from dollars to pesos. The package paired a $500 million reopening of the 2037 dollar bond at a 4.73% yield—78 basis points above U.S. Treasuries—with a new 10-year global bond in Uruguayan pesos at 8.00%.

Demand reached roughly $3.84 billion. On the peso leg, about $1.25 billion was placed for cash and around $100 million equivalent via swaps out of older local-currency paper. Bank of America, HSBC, and Itaú BBA led the books.

Behind the headline numbers was a tidy piece of housekeeping: a linked auction to buy back part of the 8.5% peso bond due 2028. That helps consolidate liquidity into the new benchmark and smooth the government’s maturity profile.

Uruguay also again let buyers of the new peso bond pay with selected domestic Treasury and central-bank instruments—an engineering choice that deepens the on-shore investor base and improves secondary-market trading.

The larger story is strategic. Uruguay is methodically reducing its exposure to a strong dollar by raising more in pesos and proving it can do so at ever-lower costs.

Uruguay Shrinks Dollar Risk, Lowers Borrowing Costs: A Quiet Sovereign Debt Pivot. (Photo Internet reproduction)

Uruguay Locks in Cheap Debt, Signals Policy Confidence

A “spread” is simply the extra interest investors demand over ultra-safe Treasuries; at 78 basis points on the dollar tap and 8.00% on the peso note, the country locked in its cheapest terms for these formats, signaling confidence in its policy mix and institutions.

Context matters: Uruguay also debuted in Swiss francs in June and keeps its investment-grade badges (BBB/Stable; BBB+/Stable).

For readers outside the country, this is a small economy showing how to manage debt risk without drama—build a local-currency market, diversify funding, and use buybacks to tidy the curve.

What to watch next: follow-through on peso issuance, the breadth of domestic demand, and steady fiscal discipline.

All figures and details in this article reflect official disclosures and contemporaneous market reports; nothing here is speculative or embellished.