This Wednesday, May 31, Peru carried out a successful debt operation in the international market, with a demand that doubled the supply, according to the Ministry of Economy and Finance (MEF). Using the terms of the Sustainable Bond Framework, the first issuance of a sustainable bond in local currency was made for S/9,185 million, equivalent to approximately US$2,500 million maturing in the year 2033.
“Our country is returning through the front door to the international market, it is a historic issue in soles, since it marks the return of Peru to international markets after the pandemic. With this issue, investors recognize the strength and resilience of the Peruvian economy, its solid macroeconomic fundamentals and the responsible management of its fiscal accounts”, highlighted the head of the MEF, Alex Contreras Miranda.
The minister added that this is the largest operation in local currency so far this year in Latin America. “The operation is part of the Comprehensive Asset and Liability Management Strategy that the MEF has been implementing, which includes the issuance of sustainable bonds and debt solarization among its actions,” he noted.
The placement of the new sustainable sovereign bond, which constitutes a new 10-year reference, was carried out in a scenario motivated by a high demand from investors that at its best reached around S/20,000 million. The offer began with referential levels of 7.70%, finally obtaining a coupon and rate of return of 7.30% and 7.35%, respectively.
In this way, Peru enters the international market after more than three years to carry out a bond issue in local currency, in a context of great expectations on the part of international investors, recognizing the strengths of the Peruvian sol currency, he specified. the entity.
Debt management operation
In addition, a debt management operation was started consisting of the repurchase or exchange of existing bonds denominated in soles, and the repurchase of its bonds denominated in US dollars, which will be partially or totally financed with the issuance of the new Sovereign Bond 2033.
The bonds involved in the liability management operation are the Sovereign Bonds 2023, 2024, 2026 and 2028 and the Global Bonds in dollars 2025, 2026, 2027, 2030 and 2031.
The recovery of investor confidence in Peru was key to the success of this operation, which has made it possible to take advantage of this window of opportunity given the current financing conditions, assured the MEF.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
