Uruguay intends to tap the international capital markets for up to US $1.5bn in 2016 as it sees to prefund for next year, according to the country's latest debt report. The South American country already has ample funds to cover approximately US $2bn in amortizations and interest payments falling due this year. But prefunding well ahead of time has long been part of the country's strategy in the capital markets, and this year will be no different. That said, unlike prior years, the government will lean more heavily on loans from multilaterals, according to the report.
Uruguay last came to market in October 2015 when it sold US $1.7bn 2027s as part of an effort to retire off-the-run bonds and create a large liquid 10-year benchmark.