Peru today carried out a debt operation through the issuance of global bonds in foreign currency for a total of 4,000 million dollars, with maturities in the years 2034, 2051 and 2072, obtaining coupon rates of 3.0%, 3.55 % and 3.60%, respectively.
The Ministry of Economy and Finance (MEF) detailed that the issues with maturities in 2034 and 2072, for 2,250 million dollars and 1,000 million dollars, represented the first sustainable bonds issued by the Republic of Peru using the terms of the Framework of the Recently approved Sustainable Bond.
The purpose of raising funds with this tool is to finance projects and expenses that generate positive impacts on the environment and promote equitable and quality access to health, housing, and education services.
“It is the first time that Peru has issued sustainable bonds and we join the countries that carry out this type of issuance. The high demand and the successful placement of these Peruvian global bonds are a confirmation that international investors continue to believe that Peru’s macroeconomic fundamentals remain solid. It is also a sign that there is confidence in the economic recovery that our country is already experiencing ”, said the Minister of Economy and Finance, Pedro Francke.
The placements of Peruvian bonds were carried out in a positive scenario motivated by a demand from investors that at its best exceeded 10 billion dollars, closing with a spread over the United States Treasury of 150, 150 and 180 points basic for the tranches of the years 2034, 2051 and 2072, respectively.
Likewise, the minister affirmed that the success of the operation stands out after investors improved their perspective regarding political uncertainty, which has allowed them to take advantage of windows of opportunity with good financing conditions, at levels similar to those obtained in the issuance of bonds made at the beginning of this year for long-term tranches. “It should be noted that Peru continues to be one of the strongest countries in the region with respect to its macroeconomic and fiscal strength,” he added.
The three issues managed to concentrate a demand from more than 250 international and local investors. The distribution of demand by region was mainly 57% coming from American investor accounts and 31% from Eastern Europe and Africa. The distribution by type of investor was 56% for Asset Managers, 19% for Hedge Funds, and 4.6% for insurance companies, among others.
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