By Karen Schwartz
Local currency – Peru: Safety in numbers
Despite renewed fervor for the sol market, Peruvian companies are still looking further afield for liquid deals
It's not hard to see the potential for Peru's local debt
Investors are increasingly upbeat about the country's
macroeconomic outlook. The rise of the middle class heralds a
boom for consumer-oriented companies. Funding costs for
borrowers are falling, translating into more liquid curves.
And, despite some weakening this year, the sol has been
steadily appreciating since 2009.
But although the market for debt in soles has existed for
more than a decade, until now it has lacked depth and
That is changing. In 2012, issuance in the local markets
nearly doubled: companies issued 2.1 billion soles ($805
million) of debt, compared with 1.3 billion soles in 2011.With
GDP growth averaged above 5%, debt sales in soles are poised to
"We see medium-sized companies are increasingly using the
[local and international] capital markets as a funding
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