After a 74-year absence, Peru returned to the international
capital markets in February 2002 with a 10-year, $1.42 billion
bond. The historic issue signaled a break with the past for a
country that traditionally had relied on multilateral financing
to make up budget shortfalls.
Pedro-Pablo Kuczynski, Peru's finance minister at the time,
organized and executed the issue. Part new cash and part Brady
swap, the transaction allowed Peru to issue $500 million in new
bonds and exchange $1.21 billion of its outstanding Brady bonds
for a $930 million, new global bond. The issue gives Peru a
liquid benchmark bond and qualifies for inclusion in JP
Morgan's EMBI+ index, which tracks the emerging markets' most
liquid and tradable bonds. Investors met Peru's return to the
international capital markets with...
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.