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
office.
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
from...
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