Uruguay’s state-run power company Administracion Nacional de Usinas y Transmisiones Electricas (UTE) is selling $80m in 5 and 10-year bonds to local institutional investors Thursday. A $70m 10-year denominated in inflation-linked units will price at 5.25% with 2 years’ grace, while a $10m 5-year dollar tranche is set at 4.00%, Javier Gomez, director at Uruguayan brokerage ProCapital tells LatinFinance. The deal – which was roadshowing Wednesday in Montevideo and will price by auction today – is rated AA+ locally by Fitch, adds Gomez, whose firm is joint lead with Santander. Pension funds, insurance companies and banks are expected to participate. “It’s going to be a benchmark for Uruguay,” says the banker. The deal is part of a $140m program, with the balance slated to be sold in 2010, depending on the issuer’s needs. Proceeds of this week’s sale are earmarked for a transmission connection to Brazil.