Peru ended its 74-year absence from the international bond markets
in February when it issued $1.43 billion worth of 10-year global
bonds in a well-received deal that included a Brady exchange. The
issue made the most of improving sentiment towards Peru, where the
government of President Alejandro Toledo has shown signs of hitting
its stride after a difficult and contentious first six months in
Prior to the deal, both Moody's and Standard&Poor's raised
their outlook for Peru and the government also concluded a $316
million stand-by agreement with the International Monetary Fund.
The BB-/Ba3 rated sovereign was keen to go to the markets after
its Brady spreads narrowed to historic lows of well below 500 basis
points. Pedro-Pablo Kuczynski, the former investment banker now at
the helm of the country's economy and finance ministry, also made
the case that Peru needed "to diversify its credit sources" away
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