Forestal Oriental obtains approval to issue corporate bonds for USD 100 million

Forestal Oriental S.A., the forestry company of Botnia in Uruguay, received on
2 September the approval of the Central Bank of Uruguay regarding registration
of its program to issue Corporate Bond for a nominal value of USD 100 million.
The approval contains a first series emission under the program for a nominal
value of USD 35 million. The term for repayment of the first series is 10 years
with a 7 percent effective annual interest rate. 

The firm enters the capital market by issuing Corporate Bonds through public
bidding. Through this program, the company seeks to achieve a more efficient
capital structure and be part in the development of local Uruguayan long term
investment instruments. “This program aims to generate long term investment
instruments that are compatible with our forestry activity which is also long
term,” stated Ronald Beare, Senior Vice President, Uruguay operations. 

According to the Fitch Raitings consultancy, this operation is rated A + (UY).

Credit Uruguay Bank has acted as arranger of this program.