BEST OIL AND GAS FINANCING

BEST OIL AND GAS FINANCING

Petroperú’s debut international bond in June 2017 did not lack for superlatives. The $2 billion offering was the largest ever corporate issuance and the first 30-year corporate issuance from Peru. The oil company divided the notes into 15- and 30-year tranches to finance the modernization and expansion of its Talara Refinery. Bank of America Merrill Lynch, Goldman Sachs, HSBC and JPMorgan began pricing around 5% and 6%, but ultimately launched at 4.75% and 5.625%, respectively. While Peru’s tight yields and a sovereign guarantee of up to $1 billion benefitted pricing, the company’s high debt profile was viewed as a potential obstacle. Nevertheless, the income generation of the Talara expansi

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