Peru hitches buyback to new notes

Peru hitches buyback to new notes

Bonds Debt Capital Markets Corporate & Sovereign Strategy Economy & Policy Fixed Income Peru US Europe

Peru said it plans to use the proceeds from an upcoming bond sale to fund the buyback of notes that come due between 2023 and 2037.

The sovereign issuer has offered to pay premiums between $111 and $596 to repurchase its 5.2% 2023 local notes along with its 2.75% 2026 notes and 3.75% 2030 notes in euros and its 7.35% 2025 notes, 4.125% 2027 notes, 8.75% 2033 notes and 6.55% 2037 notes in dollars.

Bondholders can tender their notes through June 13, when Peru is expected to sell new notes in dollars and soles.

Peru issued PEN10.4bn ($3.12bn) in sol-denominated global notes in December last year, marking the largest local-currency debt sale by an emerging market at the time.