The Peruvian Government issued two new references in U.S. Dollars with maturities in 2041 and 2051, as well as the reopening of the 2031 Global Bond for a total of US$ 4,000 million, obtaining competitive rates of 3.30%, 3.55% for new bonds and a reopening rate of return of 2.734%, respectively.
The operation conducted through the Ministry of Economy and Finance (MEF) attained a demand exceeding US$ 10 billion, with the participation of more than 200 investors, mainly from the United States (71%), Europe (21%), Asia (4%) and Latin America (4%).
The received demand allowed to compress the initial levels by 35 bps above those observed in the issues of other sovereign bonds that have been recently issued in a still volatile context in which the signs of the global economic recovery are still moving slowly.
This operation ensures the country’s financing needs at a competitive cost, once global rates return to a scenario of certain stability, anticipating events that may add volatility to financial markets. Such issue is intended to finance the financial requirements provided for in the Budget Law for Fiscal Year 2021.
Today Peru, through the MEF, issued a global bond, which obtained a solid demand exceeding US$ 10,000 million, obtaining competitive rates of 3.30%, 3.55% and a reopening rate of return of 2,734%.
“In this sense, the excellent conditions attained when issuing a bond show a clear preference on the part of investors for Peruvian debt instruments,” stated the MEF.
It should be noted that Peru is recognized as one of the strongest emerging economies in Latin America, which has allowed it to maintain its credit rating in foreign currency by the three main risk rating agencies.
This operation is part of the implementation of the Comprehensive Asset and Liability Management Strategy implemented by the MEF, primarily aimed to optimize the public debt profile and the financing cost for the country.