The Republic of Peru completed a historic bond issuance totaling approximately US$5.8 billion, consolidating its position in international capital markets. This transaction included both a Public Offering of Sovereign Bonds denominated in Peruvian soles and a Public Offering of Registered Bonds denominated in US dollars, in addition to a series of liability management transactions involving outstanding bonds.
Broadcast Details
Sovereign Bonds in Peruvian Soles:
- Amount: S/10,000,000,000 (approx. 2.8 billion dollars)
- Coupon: 6.85%
- Expiration: 2035
- Part of these bonds (S/1,205,456,000, approx. 334 million dollars) were delivered in the form of Global Deposit Notes.
Bonds Registered in US Dollars:
- Issuance of $1.6 billion with a 5.50% coupon and $1.4 billion with a 6.20% coupon, both maturing in 2036 and registered with the U.S. SEC.
Liability Management Operation
Simultaneously with the issuance, Peru carried out a liability management operation, allowing holders of several series of existing sovereign bonds to exchange their bonds for the new instruments or sell them for cash.
The total amount of sovereign bonds validly offered and accepted in the exchange offers was approximately S/9.4 billion (approx. US$2.6 billion).
In the cash buyback offers, bonds worth S/2.8 billion (approx. US$770 million) were accepted.
In addition, holders of bonds denominated in dollars and euros were offered the option to exchange or sell their securities, with an acceptance of approximately 516.7 million in dollar bonds and 229.8 million in euro bonds.
Relevance of the operation
This operation represents an important step in extending the maturity profile of Peruvian debt and reinforces the confidence of international investors in the country's economy.The funds obtained will be used to manage the State's liabilities and financial needs, in line with the strategy of fiscal sustainability and responsible management of public debt.
This operation marks a milestone in the Latin American sovereign debt market and positions Peru as an attractive and reliable issuer in international capital markets.
The transaction was advised by the international firm Baker McKenzie, New York, and involved global banks such as BNP Paribas, Citigroup, HSBC and Santander as placement agents and managers of the offers.
